So recently I had a chance to read through a publication by Senator Matthew Canavan (LNP, Queensland) entitled Balancing taxing and parenting – submission to Re:think – Australian Government Tax Discussion Paper from June this year. In this document, Senator Canavan discussed the imbalance produced by having a tax system focused almost exclusively on the individual, regardless of any spousal income, whilst our family payment arrangements are based on household income.
There has been several times over the last decade or so, where the idea of “income splitting” has been raised. However, I haven’t before seen such a comprehensive analysis of the benefits of household-based taxation as in this paper. I recommend you get access to a copy and read it yourselves.