12 Hodgson JATTA Vol1 No2.PDF

8/10/2019 12 Hodgson JATTA Vol1 No2.PDF

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646

AN HISTORICAL ANALYSIS OF FAMILY PAYMENTS

IN AUSTRALIA: ARE THEY FAIR OR SIMPLE?

AN ANALYSIS OF TRANSFER PAYMENTS TO AUSTRALIAN FAMILIES

APPLYING THE CRITERIA OF EQUITY AND SIMPLICITY

HELEN HODGSON

Helen Hodgson is a Senior Lecturer, Atax, Faculty of Law, University of New South

Wales.

Explain what th law wa! "#a"$in# th Fa%il& Pa&%nt !&!t% an$ E$'(ati)n Ent"& Pa&%nt p"i)"

t) th (han#! p't *)"wa"$+ an$ th nat'" )* th a,)-%nti)n$ (han#!. Y)'" xplanati)n !h)'l$

in$i(at whn th! nw %a!'"! will ,#in an$ (a! /i* appli(a,l0.It ha! alwa&! ,n a t"a$iti)n in th A'!t"alian taxati)n !&!t% that *a%ili! #t a((!! a ("tain

1'it& a%)'nt th")'#h ()n(!!i)n! *)" *a%ili! in (al('lati)n )* pa&a,l in()% tax!. In ()nt"a!t

t) th U2 pa&%nt !&!t% whi(h )nl& a$)pt$ in$i-i$'al! a! taxati)n 'nit! a*t" 35+ th

A'!t"alian !&!t% l-i$ tax! )n in$i-i$'al! in!ta$ )* *a%il& 'nit!. Un$" that A'!t"alian taxati)n

!&!t%+ *a%il& tax ()n(!!i)n! a" a-ail$ in *)"% )* $$'(ti)n!+ ",at! )" )**!t! that l)w"

pa&a,l tax ,& th *a%il& in!ta$ )* th ()n-nti)nal %a"#inal tax !(al!. A$$iti)nall&+ )-" ti%+

th" ha! ,n an alt"nati- %an! )* )**"in# *a%il& ai$+ that i!+ th")'#h th wl*a" !&!t%.

Th! a%)'nt! a" $i"(tl& pai$ t) th a**(t$ *a%ili!. R(nt "*)"%! ha- %a$ *a%il&

t"an!*" pa&%nt! $i"(t pa&%nt! %'(h %)" p"-alnt. C)n!1'ntial p"),l%! a! a "!'lt )*

th ,n*it! "%ain la"#l& 'nt!t$.

P"i)" t) th 7534 (han#! i%pl%ntati)n+ th Fa%il& Tax

8n*it /FT80 that (a% int) **(t )n th 3 9'l& 7555 "%ain! in *)"(. Thi! wa! $!i#n$ t)

"pla( tax an$ wl*a" ,n*it! a-aila,l t) *a%ili!. FT8 /75550 "$'($ th a!!i!tan( *)"%! at

th ti% *")% twl- t) )nl& th". Th th" ,n*it! in(l'$$ Fa%il& Tax 8n*it A an$ 8 an$

Chil$ Ca" 8n*it. A$$iti)nall&+ %at"nit& all)wan( wa! ()ntin'$ ,'t %)-$ int) Fa%il& Tax

A!!i!tan( L#i!lati)n.

FT8 /A0 i! $!i#n$ t) )**" a!!i!tan( t) ,)th l)w an$ %i$$l in()% *a%ili!. Thi! i!

a-aila,l a! a *)"% )* $i"(t pa&%nt *")% Fa%il& A!!i!tan( O**i( /ith" -"& *)"tni#ht )" a!

l'%p !'%0 )" in *)"% )* tax )**!t. On th )th" han$+ FT8 /80 i! a "pla(%nt )* *)"%" !p)'!

",at that wa! p"%itt$ a! a tax )**!t. Thi! i! a-aila,l t) *a%ili! that $pn$ )n )n p"i%a"&

in()% a"n". A! with th Fa%il& Tax 8n*it Pa"t A it i! a-aila,l *)"tni#htl& )" a! a tax )**

!t. On th )th" han$+ th Chil$ Ca" 8n*it i! a "pla(%nt *)" th p"-i)'! (hil$ (a"

a!!i!tan(:",at! a-aila,l t) hlp pa"nt! that ha- pla($ thi" (hil$"n 'n$" (hil$ (a".

Th! pa&%nt! w" %a$ )'t )* taxati)n !&!t%+ ,'t w" pa"tl& in "!p)n! t) l#al p"in(ipl



6;6

$n&in# p)pl $$'(ti)n *)" ()!t )* (hil$ (a" whil pa"nt i! w)"<in#. A !'%%a"& i! p")-i$$ in

th ta,l ,l)w=

Ol$ 8n*it Nw 8n*it

Fa%il& all)wan( Man! t!t$ pa&%nt t) *a%il& with

(hil$"n. S'ppl%nta"& pa&%nt

a-aila,l *)" l)w in()% *a%ili!.

FT8 /A0

Fa%il& tax pa&%ntPa"t! A an$ 8

Tax*" th"!h)l$! w" %)$i*i$ wh" ataxpa&" ha$ (hil$"n. F)" a(h (hil$ th

tax th"!h)l$ wa! "ai!$ ,& a p"!("i,$

a%)'nt+ an$ an a$$iti)nal all)wan( wa!

%a$ i* th taxpa&" ha$ a (hil$ l!! than

*i- &a"! )* a#. Th %)$i*i$ th"!h)l$!

w" %an! t!t$.

FT8

Fa%il& tax a!!i!tan(

Pa"t! A an$ 8

>h" a *a%il& $i$ n)t ha- a hi#h

n)'#h taxa,l in()% t) ,n*it *")% th

(han#! th")'#h th taxati)n !&!t%+ $i"(t

pa&%nt! w" %a$ *)"tni#htl& th")'#h th

wl*a" !&!t%.

FT8

Dpn$nt !p)'!",at /with (hil$"n0

Sp)'! ",at wa! (lai%$ a! an in()%tax )**!t. F")% 3?7 th a%)'nt that

()'l$ , (lai%$ in "!p(t )* a $pn$ant

!p)'! wa! in("a!$ i* th taxpa&" al!)

ha$ a $pn$nt (hil$ )" !t'$nt. F")%

34 th ntitl%nt wa! "$'($ ,& th

a%)'nt )* an& pa"ntin# pa&%nt.

FT8 /80= %an!t!t$ a#ain!t

in()% )* l)w"

a"nin# pa"nt

8a!i( pa"ntin#

pa&%nt

A pa&%nt t) a p"!)n wh) !ta&$ at

h)% t) (a" *)" (hil$"n@la"#l&

"pla($ $pn$ant !p)'! ",at.

FT8 /80

S)l pa"nt ",at A taxpa&" wh) ha$ th !)l (a" )* a$pn$nt (hil$ )" !t'$nt wa! ntitl$ t) a

tax )**!t.

FT8 /80= n)t%an! t!t$

Chil$ (a" (a!h ",at S',(t t) a w)"< t!t. Pai$ t) *a%ili!

wh" a !)l pa"nt )" ,)th pa"nt! a"

w)"<in#+ !t'$&in#+ t"ainin# )" l))<in# *)"

w)"< a! "()#niti)n that (hil$ (a" i! a ()!t

)* w)"<.

Chil$ Ca"

8n*it!

Chil$ (a" a!!i!tan( Pai$ t) l)w an$ %i$$l in()% *a%ili! )nth ,a!i! )* a *a%il& in()% an$ a!!t! t!t.

Chil$ Ca"

8n*it!

Eli#i,ilit& *)" th "-i!$ Chil$ Ca" 8n*it i! $pn$nt )n ()n$iti)n! that %'!t , %t ,& th



666

(a" #i-" a! wll a! ,& th pa"nt+ ,'t a" lin<$ t) FT8 li#i,ilit&. Pa&%nt! a"

%a$ ith" ,& in!tal%nt! $i"(tl& t) th (hil$ (a" p")-i$"+ )" a! a l'%p !'%

"i%,'"!%nt.

H)w-" )n (l)!" xa%inati)n+ th" a" a n'%," )* a$$iti)nal ntitl%nt! that ha-

,n ")ll$ int) th nw !&!t%+ whi(h "ai!! th 1'!ti)n a! t) whth" th !&!t% ha!

in *a(t ,n !i%pli*i$ at all. C)%,inati)n )* ,n*it! $)! n)t n(!!a"il& "!'lt in

th !i%pli*i(ati)n )* ,n*it!. Th *)ll)win# ta,l ()%pa"! th )l$ ,n*it with th()""!p)n$in# ()n(!!i)n in th nw !&!t%.

; Lodge v FC of Hi#h C)'"t B7 ATC 43B4.

6A(<n)wl$#$ ,& th Mini!t" *)" H'%an S"-i(! an$ Halth+ Han!a"$+ Ma& 3;+ 33.



C73



666

8 !nco"e ax

3 Concessional #eductions and $e%ates& 're('ost )*+,

P"i)" t) 3B;+ ()n(!!i)nal $$'(ti)n! w" a-aila,l t) taxpa&"!+ $pn$in# )n thi"

p"!)nal (i"('%!tan(!. Thi! ha! ,n xp"!!$ a! *)ll)w!=

C)n(!!i)nal D$'(ti)n! hlp t) "!t)" h)"i)ntal 1'it& ,twn in$i-i$'al!

)n a pa"ti('la" in()% l-l wh) $i**" with "!p(t t) (ha"a(t"i!ti(! !'(h a!

%a""ia#+ (hil$"n an$ halth an$ wh) th"*)" in('" $i**"nt a%)'nt! )* th

a!!)(iat$ 'na-)i$a,l xpn$it'".B

S)% )* th ("iti(i!%! xpl)"$ ,& th ()%%itt in "lati)n t) a !&!t% )* $$'(ti)n!

"lat$ t) th la(< )* 1'it& inh"nt in $$'(ti)n! within a p")#"!!i- tax !(al. In

pa"ti('la" th *)ll)win# tw) i!!'! w" i$nti*i$=

A p))" %an! wi* i! w)"th l!! than a "i(h %an!?

In an& (a! th $$'(ti)n wa! n)t n)'#h.

In 3B6 th! ()n(!!i)nal $$'(ti)n! w" "pla($ ,& a !&!t% )* ",at!+ 'n$"

whi(h a !t ",at a%)'nt wa! a-aila,l in "!p(t )* a !p)'!. Th )"i#inal

"()%%n$ati)n wa! that th a%)'nt w)'l$ , "$'($ ,& in()% that th !p)'!

a"n$+ with th ",at ,in# $i!!ipat$ '!t ,l)w th p)int at whi(h th !p)'! w)'l$

,()% lia,l t) pa& tax p"!)nall&. Th a$-anta# )* th ",at i! that it ha$ th !a%

$)lla" -al' t) a(h "(ipint+ with)'t "*"n( t) th %a"#inal tax "at )* th taxpa&".

Th !p)'! ",at 'n$" thi! !&!t% wa! "lat$ t) !'pp)"tin# a !p)'!+ "ath" than

whth" (hil$"n w" a pa"t )* th *a%il&.

Th ()n("n! a,)'t $$'(ti)n! *)" (hil$"n w" a$$"!!$ ,& "%)-in# a $i"(t

()n(!!i)n in "lati)n t) $pn$nt (hil$"n. Chil$ En$)w%nt wa! "na%$ Fa%il&All)wan( an$ in("a!$. Chil$"n w" "tain$ a! a n)ti)nal ",at *)" th

(al('lati)n )* th )n ",at+ whi(h i! in it!l* a h)"i)ntal 1'it& %a!'". Thi!

n)ti)nal ",at i! ta<n int) a(()'nt *)" a(h !t'$nt 'n$" 7; )" (hil$ 'n$" 36 wh)

$)! n)t ha- a !i#ni*i(ant p"!)nal in()%.

In 3?7 th !p)'! ",at wa! %)$i*i$ t) all)w an in("a!$ a%)'nt wh" a

$pn$nt !p)'! wa! (a"in# *)" (hil$"n )" !t'$nt!+ wh" a n)ti)nal ",at w)'l$

ha- ,n a-aila,l. Thi! "int")$'($ th ()n(pt )* a *a%il& a! pa"nt! with (hil$"n

in $t"%inin# th 1'ant'% )* th ",at ntitl%nt.

It wa! at thi! ti% that th ",at! ,#an t) , in$x$ a't)%ati(all& t) all)w *)"

in*lati)n in!ta$ )* ,in# "-iw$ p"i)$i(all&.

A! a !i$ i!!'+ it wa! n)t 'ntil 35 that th In()% Tax A!!!!%nt A(t wa!

"-iw$ t) "%)- th t"a$iti)nal -al'! inh"nt in *a%il& p)li(&. In "a$in# th

BCCH E$it)"!+ Th A!p"& Rp)"t= An Anal&!i! CCH /3B;0 pa"a 3755.

?A,)- n 3 pa"a 37..



6B6

lit"at'" that a(()%pani! th l#i!lati)n p")-i$in# *a%il& !'pp)"t+ it wa! '!'al t) !

th a!!'%pti)n that th %ain ,"a$winn" )* th h)'!h)l$ wa! th %al pa"tn"+ with

th !p)'! ,in# th !()n$a"& a"n". It i! al!) *")% that &a" that th $*initi)n )*

!p)'! in(l'$! a $*a(t) !p)'!+ at la!t *)" taxati)n p'"p)!!.

7 Ho"e Child Care Allowance

In 34 *a%il& ()n(!!i)n! w" %)-$ *'"th" )'t )* th taxati)n !&!t% th")'#h th

int")$'(ti)n )* th H)% Chil$ Ca" All)wan( /lat" t) , "na%$ th 8a!i(

Pa"ntin# Pa&%nt0. Thi! ,n*it wa! pai$ $i"(tl& t) a pa"nt wh) (h)! n)t t) w)"<+

an$ wa! intn$$ t) "pla( th $pn$ant !p)'! ",at /with (hil$0. Th" wa! a

!li#htl& hi#h" "at pai$ whn ()%pa"$ t) th ",at ,'t+ i%p)"tantl&+ it wa! pai$

$i"(tl& t) th pa"nt at h)% in!ta$ )* t) th taxpa&in# !p)'!.

Th $pn$ant !p)'! ",at /with (hil$0 wa! n)t "pal$ at thi! ti%+ ,'t it wa!

**(ti-l& "pla($ a! an& pa&%nt "(i-$ a! a $i"(t ,n*it "$'($ th a%)'nt

that th taxpa&" ()'l$ (lai%.

Fa"ily ax 'ay"ent

Th nxt !i#ni*i(ant (han# in "()#ni!in# *a%ili! in th (al('lati)n )* tax pa&a,l

wa! %a$ *)ll)win# th l(ti)n )* th H)wa"$ Li,"al G)-"n%nt at th 36

l(ti)n.

Th Fa%il& Tax Pa&%nt in("a!$ th tax th"!h)l$ *)" *a%ili! with th (a" )*

(hil$"n 'n$" th a# )* 36+ )" !t'$nt! 'n$" th a# )* 3? ,& an a$$iti)nal J3555 *)"

a(h $pn$nt (hil$. A! thi! wa! an in("a! in th tax th"!h)l$+ it wa! **(ti-l& a

",at )* an a%)'nt 1'al t) th tax "at appli(a,l at th l)w!t l-l+ that i!+ 75 p"

(nt x J3555 K J755 p" (hil$. H)w-"+ it wa! %an! t!t$ !) that pa"nt! a"nin#

%)" than JB5 555 p" ann'% /in("a!$ ,& J555 *)" a(h (hil$0 w" n)t ntitl$ t)th *'ll a%)'nt.

Th" wa! a !()n$ ()%p)nnt t) thi! initiati- that appli$ whn a *a%il& ha$ at la!t

)n (hil$ 'n$" *i- &a"! )* a#. A %an! t!t+ lin<$ t) th in()% l-l! *)" th

pa"ntin# pa&%nt+ appli$ t) th in()% )* th !()n$a"& a"nin# !p)'! an$ a *'"th"

th"!h)l$ appli$ t) th *a%il& in()%.

Th xt"a th"!h)l$ a-aila,l wa! an a%)'nt )* J7;55+ whi(h **(ti-l& a%)'nt$ t)

J;55 "$'(ti)n in tax+ that i!+ 75 p" (nt x J7;55. Thi! wa! a-aila,l in a$$iti)n t) th

*i"!t ()%p)nnt. Th !p)'! ",at wa! al!) a-aila,l in "lati)n t) l)w in()%

!p)'!!.

A! it wa! a(<n)wl$#$ that !)% l)w in()% a"n"! $i$ n)t a"n !'**i(int t) (lai%

th ,n*it th")'#h th taxati)n! !&!t%+ l)w in()% a"n"! w" a,l t) (lai% th

1'i-alnt )* th in()% tax ",at a! a !)(ial !('"it& ,n*it (all$ Fa%il& Tax

A!!i!tan(.



6?6

In A'#'!t 3? th Li,"al Pa"t& ann)'n($ an in("a! in th! th"!h)l$! a! pa"t )*

it! tax "*)"% pa(<a#+ t) ta< **(t *")% 3 9'l& 7555. H)w-"+ th! in("a!! w"

)-"ta<n ,& th FT8.

4 Fa"ily ax -enefit

A! $i!('!!$ p"-i)'!l&+ th FT8 wa! !'pp)!$ t) !i%pli*& th "an# )* ,n*it!a-aila,l t) *a%ili!. It i! %a$ 'p )* !-"al ()%p)nnt!+ an$ l%nt! )* th *)"%"

tax all)wan(! (an , !n in th wa& in whi(h th ,n*it! a" (al('lat$. Th FT8 i!

a$%ini!t"$ th")'#h th Fa%il& A!!i!tan( O**i(+ an$ (an , (lai%$ th")'#h )n )*

th" %th)$!=

Di"(t pa&%nt *")% th Fa%il& A!!i!tan( O**i(. I* a p"!)n i! li#i,l *)" "nt

a!!i!tan( )" a Halth Ca" Ca"$ th& %'!t (lai% th ,n*it a! a $i"(t pa&%nt

A! a tax )**!t

A! a l'%p !'% *")% th Fa%il& A!!i!tan( O**i(

Th FT8 i! )**i(iall& %a$ 'p )* tw) pa"t! in(l'$in# th *)ll)win#.

; Fa"ily ax -enefit 'art A

Pa"t A i! a-aila,l t) *a%ili! with (hil$"n+ wh" th *a%il& in()% i! ,l)w ("tain

th"!h)l$!. Th "at! a" ,a!$ )n th n'%," )* (hil$"n an$ th a# )* a(h (hil$+

wh) %'!t n)t , "(i-in# &)'th all)wan(. A (hil$ )-" 36 ,'t 'n$" 7; i! )nl&

li#i,l i* a *'llti% !t'$nt+ an$ i! %an! t!t$ ,a!$ )n th in()% )* th

$pn$ant.

Th *a%il& a$'!t$ taxa,l in()% /ATI0 i! th !'% )*= taxa,l in()% "ntal

p")p"t& l)!!! in(l'$$ in taxa,l in()% *"in# ,n*it! "(i-$ x%pt pn!i)n! ("tain *)"i#n in()% an$ %aintnan( pa&%nt!.

I* *a%il& ATI x($! th th"!h)l$ /('""ntl& J?7 5;70+ th ,a! ,n*it i! !',(t

t) !ha$in# )'t p")-i!i)n!.

Fa%il& Tax 8n*it Pa"t A al!) in(l'$! an a$$iti)nal ()%p)nnt *)" l)w in()%

*a%ili!+ in "lati)n t) (hil$"n 'n$" 36. Thi! a$$iti)nal a%)'nt i! al!) !',(t t)

!ha$in# )'t p")-i!i)n! wh" in()% x($! th th"!h)l$ *)" th a$$iti)nal

()%p)nnt /('""ntl& J3 B;;0.

F'"th" all)wan(! a-aila,l an$ pai$ )n t)p )* th FT8 Pa"t A in(l'$ th la"#

*a%il& all)wan( wh" th (lai%ant ha! %)" than th" (hil$"n+ an$ th %'ltipl ,i"th all)wan( wh" th" )" %)" (hil$"n a" ,)"n t)#th".

6 Fa"ily ax -enefit 'art -

Pa"t 8 )* th FT8 i! $!i#n$ t) a!!i!t !in#l in()% *a%ili!. Thi! ,n*it "pla($

th !)l pa"nt ",at an$ th !p)'! ",at /with $pn$ant (hil$0 *")% 3 9'l& 7555.



66

Eli#i,ilit& $pn$! )n th *)ll)win# ("it"ia=

Th" %'!t , at la!t )n (hil$. A (hil$ %'!t , 'n$" 3?+ an$ i* )-" 3; %'!t ,

!t'$&in# *'ll ti%.

Th ,n*it i! ,a!$ )n th a# )* )n (hil$+ with a hi#h" "at a-aila,l i* th

*a%il& in(l'$! at la!t )n (hil$ 'n$" th a# )* *i-.

>h" a pa"nt i! a !)l pa"nt+ th" a" n) in()% t!t! appli$ t) $t"%in

li#i,ilit&.

>h" th (lai%ant ha! a !p)'! th ,n*it i! ,a!$ )n th A$'!t$ Taxa,l

In()% )* th l)w" in()% a"n". Th ,n*it i! "$'($ ,& 5 (nt! *)" -"&

$)lla" that th !p)'! a"n! )-" th th"!h)l$+ ('""ntl& J3?74.

Th int"a(ti)n ,twn th FT8 an$ th xi!tin# $pn$nt ",at!

wa! (han#$ ,&

th int")$'(ti)n )* th FT8. I* a taxpa&" i! li#i,l *)" th Pa"t 8 ,n*it+ it p"(l'$!

li#i,ilit& *)" a n'%," )* th $pn$nt tax ",at! that %a& ha- *)"%"l& ,n

a-aila,l. Th ",at! that a" a**(t$ a" th with (hil$ "at that (an , (lai%$ in"lati)n t) a $pn$ant !p)'!

35+ (hil$h)'!<p"

33)" h)'!<p"

37+ an$ th !)l

pa"nt ",at3

whi(h ha! ,n ()%pltl& !'p"!$$.

Th" a" !till i!!'! in "lati)n t) th "%ainin# ",at!. Th in()% t!t! a" $i**"nt

,twn th ",at an$ th FT8+ a! i! th ()n(pt )* a $pn$ant (hil$. A! a "'l )*

th'%,+ i* a p"!)n ha! (hil$"n th FT8 will #n"all& , a-aila,l+ an$ at a hi#h" "at

than th ()""!p)n$in# ",at a! th in()% th"!h)l$! a" hi#h"+ a! (an , !n in th

*)ll)win# ta,l.

Eli#i,ilit& Fa%il& Tax 8n*it Pa"t 8 R,at

Chil$

36

Dpn$nt i* in()% J?63 N)ti)nal )nl&. Dpn$nt i*

in()% J345St'$nt

; 7;

Dpn$nt i* in()% J?63

M'!t n)t , "(i-in# #)-"n%nt

all)wan(

N)ti)nal )nl&. Dpn$nt i*

in()% J3B?;

Sp)'! M'!t ha- $pn$nt (hil$ )" !t'$nt

I* (hil$ ; ,n*it K J775

Sp)'! in()% J33 ;;B

Chil$:!t'$nt ; ,n*it K J756.B5

Sp)'! in()% J?63

N) $pn$nt (hil$ K J3;;

I* $pn$nt (hil$ K J3?43

Sp)'! in()% JB643

Entitl%nt $)!nt -a"& with

a# )* (hil$

!nco"e ax Assess"ent Act )*/ !',$i-i!i)n A )* $i-i!i)n 3B.

35 !nco"e ax Assess"ent Act )*/ ITAA6 ! 3;9.

33ITAA6 ! 3;9.

37ITAA6 ! 3;L.

3ITAA6 ! 3;2.



B5B

Th" a"+ h)w-"+ !till !)% (i"('%!tan(! wh" th" i! a %i!%at(h ,twn

li#i,ilit& "1'i"%nt! *)" th tw) )**!t!. F)" xa%pl+ th FT8 i! ,a!$ )n th

ann'al in()% )* th !p)'! *)" th nti" &a"+ -n i* th& w)'l$ n)t , (la!!i*i$ a!

a $pn$nt *)" in()% tax p'"p)!! *)" thi! wh)l p"i)$. Un$" th in()% tax

",at+ th" %'!t , a !p)'! "lati)n!hip /l#al )" $ *a(t)0 *)" th !p)'! in()% t)

, ta<n int) a(()'nt. I* a p"!)n with a (hil$ nt"$ a !p)'! "lati)n!hip $'"in# th

&a"+ an$ th nw !p)'! #a- 'p %pl)&%nt t) (a" *)" th (hil$+ th in()% t!t'n$" th in()% tax l#i!lati)n w)'l$ , ,a!$ )n a"nin#! a*t" th $at that th

!p)'! a""an#%nt ()%%n($ ,'t 'n$" th FT8 l#i!lati)n th *'ll in()% *)" th

&a" w)'l$ , ta<n int) a(()'nt.34

In a$$iti)n+ in()% *)" th! t!t! i! $*in$ $i**"ntl&. Spa"at Nt In()%3;

i!

$*in$ *)" tax p'"p)!! a! in()% l!! all xpn!! in('""$ in a"nin# that in()%.

Thi! all)w! a $$'(ti)n *)" w)"< "lat$ xpn!! than (ann)t , (lai%$ in

(al('latin# taxa,l in()%+ *)" xa%pl+ (hil$ (a" an$ t"a-l t) w)"< a" n)t x(l'$$.

Spa"at nt in()% $)!+ h)w-"+ in(l'$ x%pt in()%. Th" a" al!) !)%

!tat't)"& a$$iti)n!+ !'(h a! nt (apital #ain!.

A$'!t$ Taxa,l In()% i! $*in$ $i**"ntl& 'n$" th Fa"ily Assistance Act .36 It i! ,a!$ )n taxa,l in()%+ ,'t in(l'$! ("tain pn!i)n! an$ ,n*it! that w)'l$ ,

x%pt 'n$" th !nco"e ax Assess"ent Act . It al!) in(l'$! "p)"ta,l *"in#

,n*it!+ "ntal p")p"t& l)!!! a" a$$$ ,a(<+ an$ $$'(ti)n! that %a& , all)w$ in

(al('latin# SNI a" n)t $$'(t$ i* th& a" n)t all)wa,l a! in()% tax $$'(ti)n!.

C -a%y -onus

Th %)!t "(nt in(nti- *)" *a%ili! ha! ,n p")-i$$ th")'#h th Fi"!t Chil$ Tax

R,at+ ()%%)nl& "*""$ t) a! th 8a,& 8)n'!.3B

Th %ain l%nt! )* th 8a,& 8)n'! a"=

It i! a-aila,l t) pa"nt! *)ll)win# th ,i"th+ a$)pti)n )" ta<in# l#al "!p)n!i,ilit&

*)" th *i"!t (hil$ a*t" 3 9'l& 7553

It i! an in()% t!t$ )**!t )* 'p t) J7;55 pa 'ntil th (hil$ t'"n! *i- &a"! )* a#

L)w in()% a"n"! /a"nin# l!! than J7; 555 in th (lai% &a"0 ha- a %ini%'%

ntitl%nt )* J;55 pa

It i! p")"at$ t) ta< a(()'nt )* th n'%," )* $a&! that th pa"nt ha! th"!p)n!i,ilit& *)" th (hil$

It %a& , (lai%$ th")'#h th tax !&!t%+ ,& $i"(t (lai% *")% th ATO+ )" t"an!*""$ t) a !p)'!.

34S(h$'l )* th Fa"ily Assistance Act )*** a$$"!!! $ath )" !pa"ati)n $'"in# th &a" ,'t

$)! n)t a$$"!! a ()'pl that i! *)"%$ $'"in# th &a".

3;ITAA6 ! 3;9/60.

36 Fa"ily Assistance Act )*** S(h$'l .

3B !nco"e ax Assess"ent Act )**+ ITAAB !',$i-i!i)n 63I.



B3B

Th %axi%'% ntitl%nt i! 75 p" (nt )* th tax lia,ilit& in th 8a! Ya"+ that i!+

th &a" that th p"!)n ,(a% "!p)n!i,l *)" th (hil$ )" th p"($in# &a". Th

!l(ti)n )* th ,a! &a" i! *'n$a%ntal t) th (lai%. Eith" &a" i! a-aila,l+ a! th

$at )* th (hil$ -nt will a**(t th $at that w)"< (a!!+ an$ th"*)" in()% an$

tax pai$ ,& th (lai%ant=

It i! '!'all& ,n*i(ial *)" th p"i%a"& p"!)n t) l(t a! th ,a! &a" th in()% &a" whi(h ha! th hi#h" taxa,l in()%. Thi! will p")-i$ a hi#h" ,a!i( in()% tax

lia,ilit&+ an$ th"*)" %axi%i! thi" ntitl%nt. Th ,a! &a" will #n"all& , th

in()% &a" ,*)" th -nt &a"+ a! th" i! '!'all& a p"i)$ )* a,!n( *")% th

w)"<*)"( in th -nt &a" whi(h will "$'( th p"i%a"& p"!)n! ,a!i( in()% tax

lia,ilit& *)" that &a".

In !)% (a!! it %a& , %)" ,n*i(ial *)" th p"i%a"& p"!)n t) (h))! th -nt &a" a! th ,a! &a". Thi! will )(('" wh" th (hil$ -nt happn! t)wa"$! th n$ )* thin()% &a"+ )" wh" th p"i%a"& p"!)n ha! a l)w" ,a!i( in()% tax lia,ilit& in th

in()% &a" ,*)" th -nt &a".3?

Thi! i! thn "$'($ ,& "*"n( t) th taxa,l in()% in th &a" )* th (lai%.3

Th"%'!t , a "$'(ti)n in in()% *)" th )**!t t) , a-aila,l+ with a %ini%'% a%)'nt )*

J;55 ,in# a-aila,l wh" a p"!)n! in()% in th (lai% &a" i! l!! than J7; 555.

D Social Security 'ay"ents

Th )"i#in! )* th FT8 (an , t"a($ th")'#h th -)l'ti)n )* ,n*it! *)"%"l&

pa&a,l t) *a%ili!.

8n*it! ha- ,n $i"(tl& pa&a,l t) A'!t"alian *a%ili! !in( th int")$'(ti)n )*

Chil$ En$)w%nt in 343. Chil$ En$)w%nt "at! -a"i$ $pn$in# )n th n'%,"

)* (hil$"n in th *a%il&+ ,'t w" n)t in()% )" a!!t t!t$. It wa! pa&a,l t) th

%)th". In 3B6+ whn th tax $$'(ti)n! w" "%)-$+ Chil$ En$)w%nt wa!

"na%$ Fa%il& All)wan( an$ !',!tantiall& in("a!$.

In 3? a Fa%il& In()% S'ppl%nt wa! int")$'($ t) a!!i!t l)w in()% w)"<in#

*a%ili! n)t al"a$& "(i-in# !)(ial !('"it& ,n*it!. O"i#inall& th !'ppl%nt wa!

pai$ t) th ha$ )* th h)'!h)l$+ ,'t th *)ll)win# &a" it ,(a% pa&a,l t) th

p"!)n ntitl$ t) "(i- *a%il& all)wan(. Eli#i,ilit& wa! p##$ t) th in()% t!t

'!$ *)" a((!! t) th $i!a$-anta#$ p"!)n! halth (a" !(h% a-aila,l at th ti%.

Sin( 3B?+ Fa%il& All)wan( ha$ ,n p")#"!!i-l& "!t"i(t$ wh" th (hil$ wa!

"(i-in# ("tain #)-"n%nt ,n*it!. In()% t!tin# *)" Fa%il& All)wan( wa!int")$'($ in 3?6 in "lati)n t) 36 an$ 3B&a")l$!+ /th ntitl%nt *)" (hil$"n

)-" that a# ha$ ,n "%)-$ th p"-i)'! &a"0+ an$ in 3?B *)" all "(ipint!.

3?Explanat)"& M%)"an$'%+ Taxati)n Law! A%n$%nt /8a,& 8)n'!0 8ill 7557+ pa"a .36.3B.

3ITAAB !.63475.



B7B

Un$" th in()% t!t th *'ll "at )* Fa%il& All)wan( wa! pa&a,l i* *a%il& in()%

wa! 'p t) J;5 555+ pl'! J7;55 p" (hil$. Th ,n*it wa! !ha$$ )'t a*t" that p)int ,&

J.7; *)" a(h xt"a $)lla" a"n$. Th !ha$in# )'t "%ain$ 'ntil 33 a*t" whi(h th

all)wan( ('t )'t a! !))n a! th th"!h)l$ wa! "a(h$. Th a!!t t!t+ whi(h "%ain$

'ntil 7555+ wa! int")$'($ a,)'t thi! ti%.

Th Fa%il& All)wan( wa! "na%$ th 8a!i( Fa%il& Pa&%nt in 3. O-" thi! p"i)$ in$xati)n )* th a%)'nt! pai$ an$ th th"!h)l$! w" a$)pt$+ an$ th in()%

th"!h)l$! !ta"t$ t) in(l'$ *)"i#n in()% an$ *"in# ,n*it!.

Th Fa%il& In()% S'ppl%nt wa! "na%$ th Fa%il& All)wan( S'ppl%nt in

3?B+ ,'t "%ain$ !pa"at *")% Fa%il& All)wan( 'ntil 36 alth)'#h th& w"

pai$ t)#th". Th ntitl%nt! w" in("a!$+ ,'t !ha$in# )'t )* ntitl%nt! *)"

Fa%il& All)wan( S'ppl%nt wa! int")$'($+ at J.;5 *)" a(h $)lla" )-" th

th"!h)l$ an$ an a!!t! t!t at whi(h th ,n*it ('t )'t wa! int")$'($ in 3??. In3 th !'ppl%nt wa! "na%$ th A$$iti)nal Fa%il& Pa&%nt+ an$ %"#$ with

th a$$iti)nal pn!i)n )" ,n*it a-aila,l t) a !)(ial !('"it& "(ipint. Thi! a%)'nt

,(a% pa&a,l t) th p"in(ipal (a"" n)t th !)(ial !('"it& "(ipint.

In 36 th 8a!i( Fa%il& Pa&%nt an$ th A$$iti)nal Fa%il& Pa&%nt w" %"#$ t)

,()% th Fa%il& Pa&%nt+ )nl& t) , "na%$ Fa%il& All)wan( in 3?+ pa"tl&

,(a'! th ()%%'nit& ha$ n)t a$)pt$ th nw na%.75

Th"*)" th ()%plxit& )* th FT8 that wa! int")$'($ in 7555+ an$ t) a l!!" xtnt

th Fa%il& Tax All)wan( ,*)" it+ (an , t"a($ $i"(tl& t) th )"i#inal Fa%il&

All)wan( an$ Fa%il& All)wan( S'ppl%nt.

Th Fa%il& All)wan( wa! )"i#inall& a 'ni-"!al ,n*it+ a-aila,l t) a!!i!t all *a%ili!

with th ()!t )* "ai!in# thi" (hil$"n. Thi! ,(a% a**l'n( t!t$+ that i!+ th %)!t

a**l'nt *a%ili! w" n) l)n#" a,l t) a((!! th all)wan(.

Si%'ltan)'!l& an a$$iti)nal ,n*it wa! a-aila,l t) th)! *a%ili! "1'i"in# in()%

!'pp)"t@th Fa%il& All)wan( S'ppl%nt. Thi! wa! alwa&! in()% t!t$. >hn

th tw) ,n*it! w" %"#$+ ,)th #)al! w" in()"p)"at$ int) th )n pa&%nt@

th'! "!'ltin# in th appli(ati)n )* tw) $i**"nt th"!h)l$! an$ $i**"nt a# li%it! *)"

(hil$"n within th !a% ,n*it+ n)w FT8 Pa"t A.

It i! w)"th n)tin# that th in()% th"!h)l$! appli$ at th ()%%n(%nt )* th FT8+

an$ whn a$'!t$ *)" in*lati)n+ a" n)t !i#ni*i(antl& $i**"nt *")% th th"!h)l$!

)"i#inall& appli$ t) th Fa%il& All)wan(.

75Philip R'$$)(<+ Mini!t" *)" I%%i#"ati)n an$ M'lti('lt'"al A**ai"!+ Social Security Legislation

A"end"ent 0'arenting And 1ther 2easures3 -ill )**+ + 7n$ "a$in# !p(h+ 7 O(t)," 3B+ Han!a"$+375.



BB

II FAMILY POLICY GOALS

Th" a" a n'%," )* $i**"nt p)li(& ),(ti-! that (an , a(hi-$ th")'#h *a%il&

p)li(&. Th! in(l'$=

E1'it&@n!'"in# that *a%ili! ,a" an app")p"iat tax ,'"$n in()"p)"atin#h)"i)ntal 1'it&+ whi(h "()#ni!! that *a%ili! ha- a$$iti)nal ()!t!

Sa*t& Nt@n!'"in# that *a%ili! ha- !'**i(int in()% t) %t n(!!a"&

xpn!! !'(h a! *))$+ (l)thin#+ !hlt" an$ $'(ati)n ()!t!

>)"<*)"( pa"ti(ipati)n@w)%n a" !till th p"i%a"& (a""! *)" *a%ili!+ an$

th"*)" *a%il& p)li(& /in(l'$in# a((!! t) p"!)nal in()%0 a**(t! th (h)i(!

that w)%n %a< in "lati)n t) th xtnt t) whi(h th& pa"ti(ipat in th

w)"<*)"(

F"tilit& "at! th ('""nt $,at i! *)('!!in# )n th *allin# ,i"th "at+ an$ h)w

t"an!*" pa&%nt! %a& , '!$ t) n()'"a# w)%n t) (h))! t) ha- %)"(hil$"n.

A 45uity

E1'it& i! a th)"ti(al #)al that ()n)%i!t! an$ p)liti(ian! ali< !t"i- t) a(hi-. It

(an , t"a($ ,a(< t) A$a% S%ith+ wh) !ai$=

Th !',(t! )* -"& !tat )'#ht t) ()nt"i,'t t)wa"$! th !'pp)"t )* th !tat+

a! na"l& a! p)!!i,l+ in p")p)"ti)n t) thi" "!p(ti- a,iliti! that i! in

p")p)"ti)n t) th "-n' th& n)& 'n$" th p")t(ti)n )* th !tat.73

Th As6rey $e6ort 77

$i!('!!$ th p"in(ipl )* 1'it& a! )n )* th #)al! )* a #))$

taxati)n !&!t%=

It i! '!'all& ta<n *)" #"ant$ that th ,!t a-aila,l %a!'" )* an in$i-i$'alQ!

wll,in# i! hi! in()%. Th ,'"$n )* taxati)n i! th)'#ht )* p"i%a"il& in

t"%! )* th p")p)"ti)n )* a %an! in()% that #)! in pa&in# tax!+ whth"

th& , tax! l-i$ *)"%all& )n that in()% )" in$i"(tl& ,& l%nt! )* tax in

th p"i( )* th #))$! an$ !"-i(! h ,'&!. H)"i)ntal 1'it& i! thn ta<n t)

"1'i" that tw) p"!)n! with th !a% in()% pa& th !a% tax! /at la!t in

th *i"!t pla( an$ )th" thin#! ,in# 1'al0+ whil -"ti(al 1'it& w)'l$

"1'i" that+ )* tw) in$i-i$'al! with $i**"nt in()%!+ th )n with th la"#"

!h)'l$ pa& %)" ,& !)% ()""(t a%)'nt.7

73A$a% S%ith+ he Wealth of Nations /3B *i"!t p',li!h$ in 3BB60 BBBB?.

77A,)- n 3.

7I,i$ pa"a ..



B4B

In th ()ntxt )* *a%il& !'pp)"t p)li(i!+ it i! #n"all& a(<n)wl$#$ that 1'it&

p"in(ipl! $i(tat that a p"!)n !'pp)"tin# a *a%il& i! n)t in th !a% p)!iti)n a! a

p"!)n )n th !a% in()% with n) $pn$nt!. Th"*)"+ i* h)"i)ntal 1'it& i! th

#)al+ thn th %" *a(t )* ha-in# (hil$"n !h)'l$ ntitl a p"!)n t) th "l-ant

pa&%nt )" tax ()n(!!i)n+ a! th& a" in a $i**"nt p)!iti)n *")% an)th" p"!)n

a"nin# th !a% in()% ,& -i"t' )* that *a(t. Th ('""nt FT8 i! n)t 'ni-"!all&

a-aila,l+ a! a**l'nt *a%ili! $) n)t ha- a((!! t) th ,n*it. A(()"$in#l& it ()'l$ , a"#'$ that th 1'it& t!t i! n)t %t.

H)w-" it (an 1'all& , a"#'$ that an a**l'nt p"!)n (an a**)"$ t) pa& *)" th ()!t

)* "ai!in# thi" (hil$"n an$ $)! n)t n$ #)-"n%nt a!!i!tan(. In *a(t an

appli(ati)n )* th ,n*it p"in(ipl w)'l$ !'##!t that th p"!)n with th *a%il& i!

"(i-in# %)" ,n*it *")% th tax! that th& $) pa& a! a *a%il& a((!!! %)"

#)-"n%nt !"-i(! than an in$i-i$'al+ an$ th"*)" th& !h)'l$ n)t "(i- tax

()n(!!i)n!.

8 Safety Nets

Sa*t& nt! a" (la"l& $!i#n$ *)" p)li(& ),(ti-! )th" than a(hi-in# h)"i)ntal1'it&. >hil tax 1'it& ()n!i$"! th a%)'nt that a p"!)n !h)'l$ ()nt"i,'t t)

#n"al "-n'+ thi! i! a *)"% )* "$i!t"i,'ti)n )* walth+ whi(h $"aw! )n #n"al

"-n' t) a!!i!t *a%ili! in n$.

Th (la!!i( ill'!t"ati)n )* th !a*t& nt th)"& i! th ()%%nt %a$ ,& Th H)n R 9

Haw< in 3?B+ whn h p")%i!$ that ,& 35 n) A'!t"alian (hil$ will li- in

p)-"t&.74

Thi! !tat%nt wa! %a$ whn h ann)'n($ th Fa%il& In()%

S'ppl%nt that wa! int")$'($ *)" l)w in()% *a%ili!.

Thi! !'ppl%nt *)ll)w$ (han#! that ha$ ,n int")$'($ ,& th #)-"n%nt

*)ll)win# th E()n)%i( Stat%nt )* Ma& 3?B. A%)n# th ()!t ('ttin# %a!'"!

int")$'($ at that ti% wa! a %a!'" t) %an! t!t a((!! t) th Fa%il& All)wan(+

()n!i!tnt with t!t! appli$ t) )th" !)(ial !('"it& %a!'"!.

Th n)ti)n )* li%itin# !'pp)"t t) th)! *a%ili! that n$ it (an , !n in th %an!

t!tin# that ha! appli$ t) th -a"i)'! ,n*it! a-aila,l at $i**"nt ti%!. Thi! (an ,

$!("i,$ a! a**l'n( t!tin# a! th th"!h)l$! all)w a((!! t) ,n*it! *)" all x(pt

th %)!t wll)** *a%ili!. >hil th !p)'! ",at a-aila,l th")'#h th taxati)n

!&!t% an$ th FT8 Pa"t 8 a" ,a!$ )n th a"nin#! )* th !()n$a"& in()% a"n"+

)th" ,n*it!+ !'(h a! th FT8 Pa"t A )" Fa%il& Tax In(nti-+ w" ,a!$ )n *a%il&

in()% l-l!.

Th" a" (la"l& i!!'! that n$ t) , a$$"!!$ in $t"%inin# th in()% l-l! atwhi(h !'(h !'pp)"t i! n$$+ h)w-" !'(h $i!('!!i)n i! ,&)n$ th !()p )* thi!

pap".

74ALP El(ti)n P)li(& la'n(h /7 9'n 3?B0.



B;B

C Wor7force 'artici6ation

A((!! t) (hil$ (a" a""an#%nt! ha! ,n !n a! th %a)" ,a""i" t) th

pa"ti(ipati)n in th w)"<*)"( ,& w)%n+ a! w)%n ha- t"a$iti)nall& ta<n th %a)"

"!p)n!i,ilit& *)" (a"in# *)" (hil$"n.

Th i!!' )* pa"ti(ipati)n in th w)"<*)"( ,& w)%n i! a 1'!ti)n that ha! ,na")'n$ !in( ,*)" >)"l$ >a" II+ ,'t it ,(a% a %a)" *a(t)" in #)-"n%nt p)li(&

a! %n "t'"n$ *")% th wa". Th %n "!'%$ ),! that ha$ ,n hl$ ,& w)%n

wh) ha$ )in$ th w)"<*)"( t) <p th h)% *")nt )p"atin# whil thi" %n w"

!"-in# )-"!a!.

>)%n in th w)"<*)"( at thi! ti% /S()n$ >)"l$ >a"0 w" !n a!

a,!)l'tl& n(!!a"& t) th wa" **)"t ,'t th& $i$ ha- (hil$(a" p")-i$$.

On( th wa" wa! *ini!h$ an$ th %n "t'"n$+ th w)%n w" 1'i(<l& !nt

,a(< *")% whn( th& (a%+ an$ th (hil$(a" *a(iliti! w" (l)!$ $)wn.> w)'l$ n)t ! th p")-i!i)n )* w)"<pla( (hil$(a" a#ain 'ntil th 3B5!.

7;

Un$" in()% tax law th" ha! ,n n) a-aila,ilit& )* $$'(ti)n! *)" (hil$ (a" a! a()!t )* w)"<. In Lodge v FC of

76th Hi#h C)'"t hl$ that th ()!t+ whil w)"<

"lat$+ wa! )* a (ha"a(t" that p"(l'$$ tax $$'(ti,ilit&=

th xpn$it'" wa! in('""$ *)" th p'"p)! )* a"nin# a!!!!a,l in()%+ an$

it wa! an !!ntial p""1'i!it )* th $"i-ati)n )* that in()%. N-"thl!!

it! (ha"a(t" a! n'"!"& *! *)" th appllant! (hil$ wa! nith" "l-ant n)"

in(i$ntal t) th p"pa"ati)n )* ,ill! )* ()!t+ th a(ti-iti! )" )p"ati)n! ,&whi(h th appllant #ain$ )" p")$'($ a!!!!a,l in()%.

7B

An alt"nati- app")a(h wa! %)" !'((!!*'l in $uth Nancy Cole"an v F C of 7?

.

Snat)" C)l%an "li$ )n th ()n(!!i)nal $$'(ti)n p")-i!i)n! /!',!1'ntl& "

na(t$ a! a ",at0 t) (lai% a tax $$'(ti)n *)" th ()!t )* a h)'!<p" n#a#$ t)(a" *)" h"!l*+ h" h'!,an$ an$ h" *i-&a")l$ !)n whil !h *'l*ill$ h"

pa"lia%nta"& $'ti!. S'(h a $$'(ti)n wa! )nl& a-aila,l t) %a""i$ p"!)n! in

!p(ial (i"('%!tan(!. Th %a)"it& )* th 8)a"$ )* R-iw *)'n$ that !p(ial

(i"('%!tan(! xi!t$=

In )'" )pini)n th xt"%l& ,'!& p',li( li* )* th taxpa&" an$ th n$ t)

%aintain th")'#h th h)'!<p" a ()ntin'it& )* !ta,l h)% li* *)" th

taxpa&"! !)n ()n!tit't$ !p(ial (i"('%!tan(! ,(a'! )* whi(h it i! '!t t)

all)w th $$'(ti)n.7

7;9'$& U"n+ >)%n in th >)"<pla(= I! it On Stp F)"wa"$ an$ Th" Stp! 8a(<wa"$!

'roceedings of !nternational Conference& 4x6anding Choices for Wo"en, 9 M 8a"<" /$0+ /3B0 ;.

76 Lodge v FC of Hi#h C)'"t B7 ATC 43B4.

7BI,i$ /Ma!)n 90+ 43B6.

7?Ca! 9B5= $uth Nancy Cole"an v FC of /p',li( ha"in#0 BB ATC ;B.

7I,i$+ R 2 T)$$ an$ L C )'%a"$ at ;?.



B6B

An appal t) th S'p"% C)'"t ,& th C)%%i!!i)n" )* Taxati)n wa! n)t 'phl$ )n

th ,a!i! that th $(i!i)n )* th ,)a"$ $i$ n)t in-)l- a 1'!ti)n )* law5

.

A !i%ila" "!'lt a")! in Case 28 ?5 ATC 63+ wh" th h)'!<p" wa! (a"in# *)"

a !-"l& $i!a,l$ (hil$. Th! (a!!+ h)w-"+ ha- n)t (han#$ th

C)%%i!!i)n"! p"a(ti(+ )* li%itin# !p(ial (i"('%!tan(! t) (i"('%!tan(! wh" th

p"!)n i! n)t ()ha,itin# with thi" !p)'!.3

It !h)'l$ al!) , n)t$ that th a%)'nt that (an , (lai%$ a! th $$'(ti)n:)**!t i!

(app$ 'n$" th "l-ant l#i!lati)n+ an$ w)'l$ n)t ()% at all (l)! t) th ()!t )*

!'(h a""an#%nt!.

3 Child Care Su%sidies

Th >)%n! El(t)"al L),,& />EL0 an$ )th" *%ini!t ()n)%i( )"#ani!ati)n!

a"#' that (hil$ (a" i! a p""1'i!it *)" %an& w)%n t) , a,l t) w)"<+ an$ thi!

n$! t) , "()#ni!$ th")'#h app")p"iat *'n$in# *)" w)%n '!in# (hil$(a"=

>EL '"#! #)-"n%nt! t) !'pp)"t th p")-i!i)n )* 1'alit& (hil$(a" that i!

a((!!i,l )n an 1'ita,l ,a!i!+ th ()!t! )* whi(h !h)'l$ , !ha"$ ,& pa"nt!+

#)-"n%nt!+ %pl)&"! an$ )th" !ta<h)l$"!.7

Th int")$'(ti)n )* (hil$ (a" !',!i$i! p")#"!!i-l& *")% 3?4 "()#ni!$ that (hil$

(a" i! a ()!t )* w)"<in#+ alth)'#h it i! n)t "()#ni!$ a! !'(h in th taxati)n !&!t%.

A! I ha- !ai$+ it i! a w)"< "lat$ $$'(ti)n+ li< %an& )th"!. Th #)-"n%nt

will alwa&! ha- th "i#ht an$ "tain th "i#ht t) %a< a$'!t%nt! t) an& )*

th)! $$'(ti)n!. > at la!t "()#ni! that+ in )"$" t) w)"<+ w)%n an$

*a%ili! n$ $(nt (hil$ (a"+ $(nt in()% !'pp)"t+ a p")p" in$'!t"ial

"lati)n! n-i")n%nt an$ app")p"iat $$'(ti)n! *)" th ()!t )* thi" %pl)&%nt+ a%)n#!t whi(h I w)'l$ n'%," that pa"ti('la" all)wan(.

Chil$ (a" !',!i$i! ha- ,n "tain$ in -a"i)'! *)"%! !in( thi" int")$'(ti)n in3?4+ whn th& w" li%it$ t) n)t*)"p")*it $a& (a" (nt"!. In 35 thi! wa!

xtn$$ t) in(l'$ ()%%"(ial (nt"!+ an$ ,& 34 it wa! "na(t$ a! th Chil$(a"

Ca!h R,at.

Th! (hil$ (a" !',!i$i! w" n)t )"i#inall& %an! t!t$ a! th& w" !n a! an

nt"& ()!t t) th w)"<*)"(+ h)w-"+ %an! t!tin# ha! !in( ,n int")$'($. Un$"

th ('""nt !&!t%+ int")$'($ with th FT8+ li#i,ilit& *)" th Chil$ Ca" 8n*it

$pn$! )n ,)th th (lai%ant /wh) %'!t , li#i,l *)" th FT80+ an$ th (hil$ (a"

(nt" /whi(h %'!t %t ("tain "1'i"%nt!0. Th" %a& al!) , li%it! )n th

n'%," )* h)'"! p" w< *)" whi(h a p"!)n (an (lai% (hil$ (a".

Th H)n D" Ca"%n Law"n( !tat$ in 3B=

5 FC of v Cole"an+ B? ATC 4;;.

3S ATO ID 7557:7?3.

7>)%n! El(t)"al L),,&+ Nati)nal P)li(i!+ /D(%," 75550 at ww w. wl .) " # .a'

Ca"%n Law"n(+ Mini!t" *)" H'%an S"-i(! an$ Halth+ Han!a"$ B F,"'a"& 3;+ ;?4.

http://www.wel.org.au/






BBB

In th !a% wa&+ *)" in!tan(+ that th t))l! )* t"a$ a" tax $$'(ti,l+ !)

w)%n "1'i"in# $(nt (hil$ (a" in )"$" t) w)"< !h)'l$ ha- it "()#ni!$ a!

a n)n %an! t!t$ ()!t )* %pl)&%nt. Man! t!tin# th (hil$(a" (a!h",at ha! !i#nall$ that th #)-"n%nt ,li-! that w)%n! w)"< "lat$

xpn!! a" t) , t"at$ $i**"ntl& t) %n!+ $!pit th ),!"-ati)n ,& th

Mini!t" "!p)n!i,l *)" w)%n! int"!t! that (hil$ (a" i! a #n'in w)"<

"lat$ xpn!.4

Th" a" (la"l& tw) ()%ptin# p"in(ipl! at w)"< h"= !h)'l$ (hil$ (a" ,

!',!i$i!$ a! a ()!t )* %pl)&%nt+ )" i! it a ,n*it that !h)'l$ , "!t"i(t$ t) th)!

wh) n$ a!!i!tan( with th ()!t )* (hil$ (a"

0a3 -a%y -onus

Th ,a,& ,)n'! wa! an initiati- )* th Li,"al Pa"t&+ whi(h wa! ta<n t) th 7553

l(ti)n. D)('%nt! i!!'$ at th ti% in$i(at$ that th in(nti- wa! a-aila,l t)

a!!i!t *a%ili! xp"in(in# a $")p in in()% a*t" th ,i"th )* thi" (hil$=

R()#ni!in# th *a%il& xp"in(! a *l'(t'atin# in()% wh" th %)th"la-! th w)"<*)"( t) l))< a*t" a (hil$ th ()aliti)n will int")$'( a !&!t%whi(h **(ti-l& a-"a#! in()% )-" ; &a"! an$ all)w! a %)th" t) (lai%

,a(< th tax pai$ )n h" in()% in th &a" p"i)" t) th ,i"th )* h" (hil$.;

Th *)"% )* thi! )**!t ,"a(h! th p"in(ipl )* -"ti(al 1'it&+ a! th )**!t i! ,a!$

)n th a%)'nt )* tax that th (lai%ant ha! pai$ in th ,a! &a". Cla"l& a p"!)n )n a

hi#h" in()% will ha- pai$ %)" tax+ an$ th"*)"+ )-" a *i- &a" p"i)$+ will ,n*it %)" *")% th tax )**!t.

6>hil th %ini%'% an$ %axi%'% (lai%! #) !)%

wa& t) a$$"!!in# thi! i!!'+ it i! p)!!i,l *)" a hi#h in()% a"n" wh) la-! w)"<+

an$ $)! n)t "t'"n t) w)"< ,*)" th (hil$! *i*th ,i"th$a&+ t) "(i- J37 ;55 th")'#h

th )**!t whil a l)w in()% a"n" %a& "(i- a! littl a! J7;55. Alth)'#h th

",at i! a-aila,l *)" th *i"!t (hil$ ,)"n a*t" int")$'(ti)n )* th )**!t+ in

(i"('%!tan(! wh" a p"!)n ha! l*t th w)"<*)"( *)ll)win# th ,i"th )* a p"-i)'!

(hil$ th )**!t i! )* l!! -al' a! th (lai%ant %a& )nl& 1'ali*& *)" th ,a! "at )*

J;55.

It i! !till t)) a"l& t) ! th **(t that th )**!t will ha- )n th w)"<in# patt"n! )*w)%n. Th ATO ha! in$i(at$ that th ,'$#t !ti%at! *)" th ta< 'p )* th ,a,& ,)n'! ha- ,n "-i!$ $)wn ,& J35; %illi)n in th 75575 an$ 75554 *inan(ial

&a"!B

. Th ATO wa! 'na,l t) !a& h)w %'(h )* th l)w" than xp(t$ ta< 'p "atwa! $' t) w)%n (h))!in# t) "%ain in th w)"<*)"(+ an$ th'! l)!in# li#i,ilit& *)"

th )**!t $' t) th )p"ati)n )* th in()% t!t.

4C Law"n(+ P',li( P)li(& an$ th Stat'! )* >)%n in S)(it& 'roceedings of !nternational

Conference& 4x6anding Choices for Wo"en 9 M 8a"<" /$0 /3B0 ;.

;Li,"al Pa"t& )* A'!t"alia+ Th Fi"!t Chil$ Tax R*'n$+ El(ti)n P)li(& /75530.

6Snat E!ti%at! C)%%itt ha"in#!+ 77 F,"'a"& 7557.

BSnat E!ti%at! C)%%itt ha"in#!+ 9'n 755.



B?B

N)t that th %at"nit& all)wan( /a l'%p !'% pa&%nt )* ('""ntl& J?.;7 t) a

%)th" )n th ,i"th )* h" (hil$ t) a!!i!t with th ()!t )* a nw ,a,&0 wa! n)t "%)-$

with th int")$'(ti)n )* th ,a,& ,)n'!. Th %at"nit& all)wan( wa! "int")$'($ in3B+ tw) $(a$! &a"! a*t" th *)"%" %at"nit& all)wan( wa! "%)-$.

7 2aternity Leave

Th" ha! ,n %'(h $,at "(ntl& in "lati)n t) a !&!t% )* pai$ %at"nit& la-that will #i- w)%n th !('"it& )* a #'a"ant$ ), *)ll)win# a $(i!i)n t) ta< ti%

)'t )* th w)"< *)"(.?

Pa"t )* th $,at i! )-" whth" !'(h a !(h% !h)'l$ ,

*'n$$ ,& th p',li( p'"! )" ,& %pl)&"!+ an$ th xtnt )* th !'pp)"t that !h)'l$

, p")-i$$ *")% a(h.

At thi! !ta# th *$"al #)-"n%nt ha! n)t !h)wn an& will t) p")($ with !'(h a

!(h%.

D Fertility $ates

A p',li( p)li(& a"a that i! "(i-in# %'(h attnti)n at th %)%nt i! th $(linin#

,i"th"at in A'!t"alia+ a! in %)!t )th" >!t"n ()'nt"i!. Th ,i"th"at ha! ,n

$(linin# $'"in# th la!t th" $(a$! an$+ at 3.B; in 7555+ i! ('""ntl& ,l)w th

"pla(%nt "at.

Thi! ha! !i#ni*i(ant i%pli(ati)n! in "lati)n t) th *'t'" ()n)%i( p)li(i! )* th

nati)n. A! th p)p'lati)n a#!+ it ha! i%pli(ati)n! *)" halth an$ wl*a" !pn$in# an$

th taxati)n ,'"$n )n th nxt #n"ati)n will , in("a!$.

Th"*)" th *)('! )* *a%il& p)li(& i! %)-in# awa& *")% 1'it& *)" *a%ili! with

(hil$"n+ t) n()'"a#in# p)pl t) ta< )n th "!p)n!i,iliti! )* ha-in# %)" (hil$"n.

Thi! i! "*l(t$ in th int")$'(ti)n )* th ,a,& ,)n'! an$ th ('""nt $,at )n

%at"nit& la-.

A pap" p',li!h$ "(ntl& ,& th Mni! In!tit't a"#'! that th ,!t wa& t) in("a!th *"tilit& "at in A'!t"alia i! t) '! a ()%,inati)n )* #n$" 1'it& %a!'"! an$!t"at#i! that n()'"a# a %al ,"a$winn" %)$l t) n!'" that w)%n ha- th

(h)i( t) with$"aw *")% th w)"< *)"( t) (a" *)" (hil$"n.

E !nco"e #istri%ution within the Fa"ily

A *'"th" p)li(& ()n!i$"ati)n that i! "*l(t$ in th -)l'ti)n )* *a%il& pa&%nt! i!

n!'"in# that th ,n*it i! "(i-$ in th han$! )* th p"!)n with p"i%a"& (a" )* th

*a%il&. It ha! l)n# ,n a"#'$ ,& *%ini!t ()n)%i!t! that it i! n)t app")p"iat *)"

pa&%nt! "latin# t) (hil$"n t) , pai$ th")'#h th taxati)n !&!t%+ a! thi! pla(!

()nt")l )* th %)n& in th han$! )* th p"i%a"& in()% a"n" wh) "(i-! th tax()n(!!i)n!@an$ thi! i! *"1'ntl& n)t th p"i%a"& (a"".

?Sx Di!("i%inati)n C)%%i!!i)n"+ 'aid 2aternity Leave& A i"e to 9alue /33 D(%," 75570

! al!) th >)"<pla( Rlati)n! A%n$%nt /Pai$ Mat"nit& La-0 8ill 7557+ a P"i-at M%,"!8ill int")$'($ t) th Snat ,& Snat)" St)tt D!p)a.

L'(& S'lli-an+ he !nfluence of !nco"e 45uity on the otal Fertility $ate Th Mni! R!a"(h

Cnt" Lt$+ /7550.



BB

Thi! wa! n)t$ ,& Th H)n 9'!ti( 2> A!p"& 9 in th *)ll)win# "!"-ati)n t) th

As6rey $e6ort =

In %& )pini)n+ in th w)"l$ )* t)$a& a %a""i$ w)%an !h)'l$ , t"at$ ,)th

'n$" th #n"al law an$ in th taxati)n !&!t% a! an in$i-i$'al in h" )wn

"i#ht an$+ in "lati)n t) th in()% whi(h i! ,)th %)"all& an$ l#all& h" )wn+

!h !h)'l$ pa& n) %)" an$ n) l!! tax than i* !h w" a !in#l p"!)n.45

A "(nt 8"iti!h !t'$& *)'n$ that th" a" !till i!!'! "lat$ t) th $i!t"i,'ti)n )*

in()% in h)'!h)l$!+ with w)%n ,in# !n a! p"i%a"il& "!p)n!i,l *)" th ()!t! )*

"ai!in# (hil$"n. Fa(t)"! that in*l'n( th $i!t"i,'ti)n )* in()% within th h)'!h)l$

in(l'$ whth" th in()% i! pai$ t) th w)%an an$ whth" th ()'pl p"(i-$ th

,"a$winn" ")l t) , hl$ ,& th %an.43

F)" %an& &a"! th" ha! ,n an a(<n)wl$#%nt )* thi! p"in(ipl in *a%il& !'pp)"t

pa&%nt!. Th pa"tn"! )* p)pl "(i-in# wl*a" pa&%nt! ha- ,n ntitl$ in

thi" )wn "i#ht t) a !pa"at pa&%nt+ an$ *")% 34 th H)% Chil$ Ca" All)wan(

:Pa"ntin# Pa&%nt t"an!*""$ ntitl%nt *")% th taxpa&" t) th n)na"nin#

!p)'!. In th %)!t "(nt tax ,n*it+ th ,a,& ,)n'!+ it i! "*l(t$ in th %th)$! )* (lai% that a" a-aila,l t) th (lai%ant. Th ,a,& ,)n'! (an , (lai%$ a! a $i"(t

"*'n$+ )" t"an!*""$ t) th w)"<in# !p)'! a! an )**!t.

III SIMPLIFICATION

Si%pli*i(ati)n i! n)t a(hi-$ %"l& ,& "$'(in# th n'%," )* ,n*it! an$ ")llin#

th% int) a !in#l ntitl%nt.

It i! (la" *")% th $i!('!!i)n !) *a" that th *a%il& t"an!*" pa&%nt !&!t% i! an&thin#

,'t !i%pl. Th %a)" ()%pli(ati)n! "lat t) th )-"lap ,twn th wl*a" an$

taxati)n !&!t%+ with ()""!p)n$in# $i**"n(! ,twn th li#i,ilit& "1'i"%nt!

*)" a(h.

In 3B;+ whil in $i!('!!i)n a,)'t th $$'(ti)n! a-aila,l in "!p(t )* $pn$nt

(hil$"n+ th A!p"& C)%%itt %a$ th *)ll)win# ),!"-ati)n=

It i! 'nti$& t) ha- tw) in!t"'%nt! )* p)li(& *)" th !a% p'"p)!. Th

C)%%itt !! a$-anta#! in th !'##!ti)n %a$ in th Int"i% Rp)"t )* th

C)%%i!!i)n )* In1'i"& int) P)-"t& /3B40 that th $pn$nt (hil$ all)wan( , a,)li!h$ an$ (hil$ n$)w%nt ()""!p)n$in#l& in("a!$.

47

It w)'l$ , int"!tin# t) ! what th a'th)"! w)'l$ !a& a,)'t th !&!t% that i! in

pla( t)$a&.

45A,)- n 3+ Chapt" 35+ 2 > A!p"& R!"-ati)n appn$$ t) As6rey $e6ort .

439)!ph R)wnt" F)'n$ati)n+ #istri%ution of !nco"e Within Fa"ilies $eceiving -enefits /Ap"il 3?0.

47A,)- n 3+ pa"a 37.34.



?5?

Th !&!t% i! *'"th" ()%pli(at$ whn th -a"i)'! %th)$! )* pa&%nt a" ta<n int)

a(()'nt=

Tax )**!t! a" )* li%it$ -al' wh" *a%ili! a" n)t a"nin# !'**i(int in()%

t) (lai% th *'ll a%)'nt )* th )**!t.

Di"(t pa&%nt! a" '!*'l in %tin# th )n#)in# xpn!! )* a *a%il&+ ,'t(a""& an inh"nt "i!< a! th a%)'nt pai$ %'!t , "()n(il$ ,a(< t) th in()%

a"n$ $'"in# th *'ll &a". I n)t h" that 'n$" th p"-i)'! a""an#%nt! a

*a%il& ()'l$ ),tain th ,n*it )* *)"tni#htl& "$'(ti)n! in tax i* th& w"

(lai%in# a !p)'! ",at. Alth)'#h th" w" in!tan(! wh" a taxpa&" ha$

t) "pa& th ("$it p"-i)'!l& all)w$+ *)" xa%pl $' t) !p)'! a"nin#!+ th

i!!' )* 'n$"!ti%atin# in()% $i$ n)t ha- th i%pa(t that it ha! ha$ 'n$"

th FT8 a""an#%nt!.

Di"(t pa&%nt! (an , $i"(t$ t) th p"i%a"& (a""+ a!!i!tin# th app")p"iat

$i!t"i,'ti)n )* in()% within a h)'!h)l$.

A *'"th" ()%pli(ati)n a"i!! in $t"%inin# whth" a ,n*it !h)'l$ , a-aila,l t)all *a%ili! a! a h)"i)ntal 1'it& %a!'"+ )" whth" it !h)'l$ , li%it$ t) *a%ili!

in n$+ *)" xa%pl ,& %an! t!tin# *a%il& in()%. FT8 Pa"t A i! an **(ti-

xa%pl )* h)w ()%plx th *)"%'la! (an ,()% whn ,n*it! a" ()%,in$. FT8

Pa"t A wa! !'pp)!$ t) !i%pli*& th !&!t%+ ,'t in()"p)"at! tw) $i**"nt in()%

l-l!+ with !ha$in# in+ t) $t"%in ntitl%nt+ an$ i! ,a!$ )n *)'" $i**"nt a#

,an$! *)" th (hil$"n@tw) a# ,an$! appl& *)" a(h )* th tw) in()% t!t!. Th!

$) n)t %at(h 'p at all with th a# )" in()% "1'i"%nt! *)" th FT8 Pa"t 8.

Th i!!' that ha! (a'!$ %)!t p',li( )'t("& in "lati)n t) th FT8 ha! a"i!n $' t)

th a$%ini!t"ati)n )* th in()% t!t!. Th p"),l% i! that FT8 ntitl%nt! a" ,a!$

)n *a%il& a$'!t$ taxa,l in()%+ whi(h i! (al('lat$ )n an ann'al ,a!i!. H)w-"+

$i"(t pa&%nt! a" %a$ *)"tni#htl& ,a!$ )n an !ti%at )* in()%+ an$ i* th!ti%at i! ina(('"at it (an "!'lt in a !i#ni*i(ant $,t that n$! t) , "pai$.

Th *)'" a"a! wh" th in()% t!t a""an#%nt! a" %)!t li<l& t) "!'lt in an

)-"pa&%nt a"=

L)w in()% *a%ili! (lai%in# th a$$iti)nal Pa"t A pa&%nt wh" in()%

(ann)t , "lia,l& !ti%at$. Gi-n that %an& *a%ili! at thi! in()% l-l a"

in (a!'al %pl)&%nt+ it %a& , -"& $i**i('lt t) %a< "lia,l !ti%at!.

Fa%ili! (lai%in# FT8 Pa"t 8 wh" th !()n$a"& in()% a"n" a"n! %)"than i! !ti%at$. A#ain th !()n$a"& in()% a"n" i! )*tn "(i-in# in()%i""#'la"l&+ whi(h (a'!! p"),l%! in !ti%atin# in()%.

Ca!! wh" %aintnan( *")% a *)"%" !p)'! i! "(i-$ in a l'%p !'% )"

in("a!$ $'"in# th &a".

>h" a (hil$ la-! *'llti% $'(ati)n an$ nt"! th w)"<*)"(+ )" "(i-!#)-"n%nt ,n*it!+ $i!1'ali*&in# th% *")% ,in# (la!!i*i$ a! a $pn$ant*)" FT8 p'"p)!!.



?3?

In th *i"!t &a" )* )p"ati)n )* th FT8+ !'(h $,t! w" w"ittn )** i* th& w" l!!than J3555+ h)w-"+ th p"),l% ha! ()ntin'$ t) , )* !'(h %a#nit'$ that thC)%%)nwalth O%,'$!%an ha! ()n$'(t$ an in1'i"& int) th a$%ini!t"ati)n )* th

FT8.4

In th p"i)$ *")% 3 9'l& 7555 Spt%," 7557 th" w" 3?;; ()%plaint!t) th )%,'$!%an in "lati)n t) th a!!!!%nt )* FT8+ in(l'$in# )-"pa&%nt! an$

$,t "()-"& i!!'!.44

Th %a)" i!!'! i$nti*i$ ,& th )%,'$!%an "lat t) th $i**i('lt& in !ti%atin#

a$'!t$ taxa,l in()% wh" in()% i! i""#'la"+ )" th" i! a !',!tantial (han#

$'"in# th &a"+ )" wh" %aintnan( pa&%nt! *")% a *)"%" pa"tn" w" in-)l-$.

Th %th)$ )* "()-"in# $,t! wa! !n a! ,in# a",it"a"&+ in that (lai%ant! w" n)t

in*)"%$ )* th a%)'nt )* an& )-"pa&%nt 'ntil an xp(t$ tax "*'n$ wa! "$'($

,& th a%)'nt )* th )-"pa&%nt. Finall&+ th !&!t% "1'i"! a tax "t'"n t) ,

l)$#$ ,& th n$ )* th *)ll)win# *inan(ial &a" t) all)w th FT8 ntitl%nt t) ,

"()n(il$. >h" tax "t'"n! w" l)$#$ lat@-n with xtn!i)n! ,in# *)"%all&

#"ant$ t) th tax a#nt@th FT8 wa! $ni$.

Alth)'#h th )%,'$!%an $i$ %a< a n'%," )* "()%%n$ati)n!+ th "p)"ta(<n)wl$#! th inh"nt $i**i('lti! in in()% "()n(iliati)n=

th anal&!i! !'##!t! that+ -n i* %& "()%%n$ati)n! a" a$)pt$ in *'ll+ th!(h% i! li<l& t) ()ntin' t) "!'lt in !i#ni*i(ant n'%,"! )* 'na-)i$a,l

$,t! *)" *a%ili!.4;

Th" ha- ,n !)% a$%ini!t"ati- (han#! ann)'n($ ,& th #)-"n%nt46

whi(h

all)w a n'%," )* )pti)n! whn (lai%in# FT8 *)"tni#htl&=

Pa&%nt! *)" th "!t )* th &a" %a& , "$'($ i* an )-"pa&%nt ,a!$ )n

"-i!$ in()% $tail! i! li<l&

Pa"t pa&%nt %a& , $*""$ an$ (lai%$ at th n$ )* th &a"@#+ FT8 Pa"t

8 %a& , $*""$ with Pa"t A ,in# (lai%$+ )" th ,a! "at %a& , (lai%$

with th a$$iti)nal a%)'nt *)" l)w in()% *a%ili! ,in# $*""$ 'ntil th n$

)* th &a"

>h" th in()% )* )l$" (hil$"n i! 'n("tain+ th ,n*it *)" th)! (hil$"n

%a& , $*""$ an$ (lai%$ in a l'%p !'% whn a"nin#! *)" that (hil$ a"

<n)wn.

Th" ha! ,n $i!('!!i)n int"nati)nall& )* th A'!t"alian !&!t% )* "()n(ilin#

!ti%at! )* in()% t) ann'al a"nin#!. Th U2 #)-"n%nt in pa"ti('la" a"#'! that

4C)%%)nwalth O%,'$!%an+ 1wn 2otion !nvestigation into Fa"ily Assistance Ad"inistration and

!"6acts on Fa"ily Assistance 1ffice Custo"ers /7550.

44I,i$+ pa"a B.

4;I,i$+ pa"a 4.

46Mini!t" *)" Fa%il& an$ C)%%'nit& S"-i(!+ FT8 Fin T'nin# M)" Ch)i( an$ Flxi,ilit& *)"

Fa%ili!+ /P"!! Rla!+ 3B Spt%," 75570.



?7?

whn $!i#nin# it! nw Tax C"$it !&!t% it ha! la"n$ *")% th A'!t"alian

xp"in(.4B

I THE POLITICS OF FAMILY PAYMENTS

Finall&+ whil xa%inin# th -)l'ti)n )* *a%il& t"an!*" pa&%nt! it ha! ,n

i%p)!!i,l t) a-)i$ !in# th lin< ,twn hi!t)"i(al $-l)p%nt! in th !&!t% an$*$"al l(ti)n!. M)!t )* th %a)" (han#! in th !&!t% )-" th pa!t 75 &a"! (an

, lin<$ t) a *$"al l(ti)n.

9'!t p"i)" t) th 7553 *$"al l(ti)n th >EL !'%%a"i!$ th $i**"n(! ,twn th

p)!iti)n! )* th p)liti(al pa"ti! a! *)ll)w!=

Th C)aliti)n ha! a -"& t"a$iti)nal -iw )* *a%ili!+ i tw) pa"nt!+ %)th"! at

h)%+ %n at w)"<. Th "(nt att%pt t) pa& a littl ,a,& ,)n'! wa! a ,a$l&

$!i#n$ i$)l)#i(al x"(i!. Th ALP ha! t)) )*tn '!$ *a%ili! a! a %ant"a+

,'t n)t a! (&ni(all& in thi! l(ti)n a! th C)aliti)n. Th D%)("at! an$ G"n!

a" )**"in# "al alt"nati-! t) !'pp)"t all *a%ili!+ !'(h a! pai$ %at"nit&

la-. Th G"n! an$ th D%)("at! al!) ta< a !tan$ *)" all *a%ili! in(l'$in##a& )" l!,ian+ In$i#n)'! )" "*'# *a%ili!.

4?

Th *)ll)win# ta,l %at(h! *$"al l(ti)n! with (han#! in *a%il& p)li(&.

4BPt" >hit+ Mi(hal Mn$l!)n an$ 9an Milla"+ Ti%in# it Ri#ht= Tax C"$it! an$ H)w t)

R!p)n$ t) In()% Chan#! 9)!ph R)wnt" F)'n$ati)n 755.

4?>)%n! El(t)"al L),,&+ F$"al El(ti)n Ca%pai#n /75530 at

h ttp =::w w w .w l.)" # .a ' :l ( ti ) n7553 :- ) t :# ' i$ 3 .! h t% l

http://www.wel.org.au/election2001/vote/guide1.shtml






??

Ya" El(t$ Fa%il& P)li(& Initiati-!

7553 H)wa"$= Li, 8a,& 8)n'!@**(ti- *")% 3 9'l& 7555

ALP p)li(& a$$"!!$ w)"<in# *a%ili!+ in(l'$in# (hil$

(a" i!!'! an$ !'pp)"t *)" l)w in()% *a%ili!

3? H)wa"$= Li, Fa%il& Tax 8n*it@in ()n'n(ti)n with A Nw Tax

S&!t%Th ALP p")%i!$ i%p")-$ (hil$ (a" an$ a Tax C"$it*)" >)"<in# Fa%ili!+ *)" *a%ili! a"nin# l!! than

JB5 555 ,a!$ )n th n'%," )* (hil$"n in th h)'!h)l$.

36 H)wa"$= Li, Fa%il& Tax In(nti- int")$'($+ in("a!in# tax th"!h)l$

*)" *a%ili! with $pn$nt (hil$"n

3 2atin#= ALP H)% Chil$ Ca" All)wan( an$ Pa"ntin# /H)% Chil$

Ca"0 All)wan( int")$'($ all)wan( pa&a,l t) p"!)n

(a"in# *)" (hil$"n at h)%

Chil$ Ca!h Ca" R,at@in("a!$ a-aila,ilit& )* (hil$

(a" a!!i!tan(

C)aliti)n Fi#ht,a(< pa(<a# p")%i!$ in("a!! t)

*a%il& all)wan( /%an! t!t$0+ tax ,n*it! *)" (hil$

(a" pai$+ an$ Dpn$ant Sp)'! R,at

35 Haw<= ALP Extn!i)n! t) Chil$ Ca" F Rli* t) in(l'$ p"i-at

(hil$ (a"

Li,"al! p")%i!$ tax ",at! *)" (hil$"n+ an$ (hil$ (a"

",at! xtn$$ t) p"i-at (hil$ (a"

3?B Haw<= ALP Fa%il& All)wan( S'ppl%nt int")$'($@th !)'"( )*

th !tat%nt 8& 35 n) A'!t"alian (hil$ will li- in

p)-"t&

3?4 Haw<= ALP Chil$ Ca" S',!i$i! int")$'($

N)t that i* l(t$ th ()aliti)n p")%i!$ t) int")$'( a

%a!'" )* in()% !plittin# in (al('lati)n )* tax pa&a,l

A "-iw )* th ('""nt p)!iti)n al!) !h)w! a (la" p)li(& $i!tin(ti)n ,twn th

),(ti-! )* th tw) %a)" p)liti(al pa"ti!. ALP p)li(& in th %)!t "(nt l(ti)n!

ha! *)('!!$ )n w)"<in# *a%ili! th")'#h (hil$ (a" in(nti-!+ in$'!t"ial "lati)n! an$

th w)"<in# *a%ili! tax ("$it.

On th )th" han$+ ()aliti)n p)li(& %pha!i!! (h)i(+ an$ p")-i$! in(nti-! *)"

w)%n t) la- th w)"<*)"(+ a! $%)n!t"at$ th")'#h th 8a,& 8)n'! an$ th

ti#htnin#@$'"in# thi" *i"!t t"% )* )**i(@)* a((!! t) (hil$ (a" ,n*it!.

H)w-"+ th" a" %an& )th" *a(t)"! that in*l'n( a pa"nt whn $(i$in# whth" t)

w)"< )" !ta& at h)% with thi" *a%il&+ an$ #)-"n%nt !'pp)"t *)" *a%ili! i! )nl& a%in)" ()nt"i,'ti)n t)wa"$ th ()!t )* "ai!in# (hil$"n. >hil *a%il& p)li(& i!

,()%in# a !i#ni*i(ant i!!' in l(ti)n!+ it !till "an<! ,hin$ th ()n)%&+ halth an$$'(ati)n *)" %)!t -)t"!.

4

4 Nw!p)ll+ 'olitical rend #ata& !"6ortance of Federal !ssues+ at http=::.Nw!p)ll.()%.a'





St"'(t'" an$ Di!t"i,'ti- E**(t! )* th A'!t"alian Taxati)n S&!t%@Snat

E()n)%i(! C)%%itt

P)-"t& an$ Finan(ial Ha"$!hip@Snat C)%%'nit& A**ai"! R*"n(!

C)%%itt

In1'i"& int) I%p")-in# Chil$"n! Halth an$ >ll 8in#@H)'! )* Rp"!ntati-! Stan$in# C)%%itt )n Fa%il& an$ C)%%'nit& A**ai"!

Th" a" al!) a n'%," )* )th" in1'i"i! ,in# ()n$'(t$ at $pa"t%ntal l-l+

in(l'$in# th pap" )n pai$ %at"nit& la- "la!$ ,& th F$"al Sx Di!("i%inati)n

C)%%i!!i)n"+;5

an$ th )%,'$!%an! "p)"t int) th a$%ini!t"ati)n )* th FT8.;3

Thi! !'##!t! that th" i! wi$!p"a$ $i!!ati!*a(ti)n with th !&!t% a! it ('""ntl&

xi!t!.

Th *inal w)"$ )n th! i!!'! ,l)n#! t) th)! wh) a" "#'la"l& '!in# th !&!t%+ a!

!h)wn in th! tw) xt"a(t! *")% Snat C)%%itt ha"in#!=

Th *a%il& pa&%nt! p")p)!al that w %a< a,)'t a !in#l pa&%nt *)" (hil$"n

a! )pp)!$ t) th th" pa&%nt!@)" %)" than th" pa&%nt! n)w ,(a'!

th" i! th ,a,& ,)n'! an$ all th )th"! a! wll@i! ,a!$ )n th)! p"in(ipl!

)* "()#ni!in# th n'%," )* $pn$ant! an$ )* t"atin# all *a%ili! 1'ita,l&+

n't"all&+ !) that pa&%nt! #) t) -"&,)$& "#a"$l!! )* whth" th& '! (hil$

(a" )" n)t )" whth" th& ha- a pa"tn" wh) i! in 'npai$ %pl)&%nt )" n)t.

> ha- $i!()-"$+ pa"ti('la"l& th")'#h tal<in# t) )'" %%,"!+ that th" i! a

h'# n'%," )* *a%ili! wh)+ whil th& all #t Fa%il& Tax 8n*it pa"t A+

%i!! )'t )n ith" )* th )th" tw) %a)" pa&%nt!+ that i!+ Fa%il& Tax 8n*it

pa"t 8 an$ th (hil$(a" ,n*it.;7

La#' %%,"! ,li- th" i! '"#nt n$ t) a""an# *a%il& in(nti-! an$",at! th")'#h th tax !&!t% wh" appli(a,l+ "ath" than "l&in# )n ()%plx

wl*a" pa&%nt! that a" xpn!i- t) a$%ini!t". I ha- a hap )* lit"at'"

h"+ an$ &)' al%)!t n$ a $#" t) pl)'#h th")'#h it@it i! a "al %a. ;

;5A,)- n ?+ Pai$ Mat"nit& La-= A Ti% t) al'.

;3I,i$.

;7E-i$n( t) C)%%'nit& A**ai"! R*"n(! C)%%itt= P)-"t& an$ Finan(ial Ha"$!hip+ S&$n&+ 7B

Ma& 755+ /M"! 8a"$0.;

E-i$n( t) C)%%'nit& A**ai"! R*"n(! C)%%itt= P)-"t& an$ Finan(ial Ha"$!hip+ H),a"t+ 7

Ma& 755+ /M"! R),"t! D" Ga"tlan M"! Ga"tlan "p"!ntin# Cath)li( >)%n! La#' Ta!%ania0.

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