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Dunne and Income Splitting

More than 300,000 families will be able to split their income for tax purposes and reduce their liability under legislation announced today by Revenue Minister Peter Dunne.

Mr Dunne has introduced the bill as leader of the United Future Party, and he has government support to get it through a first reading and into a select committee for public submissions.

It allows parents with children up to age 18 to combine their income and split it down the middle for tax purposes.

That would move each income into lower tax brackets and a tax credit would be paid out at the end of the year.

Because of the way the tax system works, the maximum amount that could be gained is just over $9000 a year.

The latest from our Child Tax Minister – meanwhile we continue to wait for reform of the child tax system.

I can imagine the child tax police taking numerous Commissioner initiated reviews to stop liable parents income splitting.

Hey if your on a high-income earner a $174.61 per week tax deduction must look appealing. 

Regards

Scrap