Media release

1/08/2019

Senator Pauline Hanson has slammed those who voted against a policy that she believes would have delivered a positive and significant change to family taxation.

The Senator proposed that married couples should be able to choose whether to lodge separate income tax returns or whether they should be allowed to lodge a joint return, thereby utilising income-splitting.

However, the proposal was voted down by a narrow 32 to 32, with Senator Jacqui Lambie, the Centre Alliance, the Greens and Labor voting against the idea.

“It’s unbelievable that these people claim to support families, and recognise the hardships they go through, yet they vote against a proposal that will help improve their situation,” Sen Hanson said.

“Maybe it’s just too complex an idea for them to comprehend, so they took the safe option and voted ‘no’ – it’s a shame that ordinary mums and dads are again the losers.”

The proposal was flagged by Senator Hanson on Wednesday, in a Notice of Motion that called “on the Senate to debate or have a senate inquiry into the benefits of giving married couples the option to prepare and file joint income returns and income splitting.”

The proposal would see the couple’s total income split between the two of them, giving access to two tax free thresholds and potentially placing the couple in a lower tax bracket.

“It gives people a choice about how they pay their tax, it helps families by helping them save on tax and on childcare costs, for example, and it subsequently helps strengthen the family unit,” Sen Hanson said.

“We can make it easier for stay-at-home parents to choose to look after their own kids, not having children come home to an empty house because both parents are at work, which is important for our society.”

Under the proposal, couples would have had the option to choose which mechanism they believe will be best for them.

“Unfortunately, good ideas like that, that will make a positive difference to ordinary Australian families, are ignored by those on the left, who are more intent on throwing stumbling blocks in front of everyday Australians than supporting initiatives that would make their lives better,” Sen Hanson said.

Income splitting is in place in various forms in the USA, Canada, France, Germany, Ireland and Portugal.

Here’s how the income-splitting proposal would work:

Case A

Partner 1: nil income

Partner 2: $100,000

If they file separate tax returns, partner 1 will pay $23,717

If they file joint returns, they will pay $13,434 total tax

Tax saving: $10,283

 

Case B

Partner 1: $37,000

Partner 2: $100,000

If they file separate tax returns, they will pay $27,289 total tax

If they file jointly, they’ll pay $20,460 tax

Tax saving: $6829

 

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