Why we want to change the tax act and what we want you to do

The NFAW today called for major changes to the Australian tax system, to get rid of the penalties it imposes on women.

This follows on release of an AMP.NATSEM research study She works hard for the money, showing that over a life-time, women graduates will earn more than a $million less than their male counterparts- with consequent implications for their retirement savings, among other issues.

In a short, plain English paper the NFAW highlights the problems, and invites individuals to post their own ideas about the problems they have identified with the tax system.

Professor Patricia Apps of the University of Sydney, an international expert on taxation, has provided the back-up technical papers.

Here are some highlights

The tax system penalises women for having children whether they go to work or stay at home

Women returning to the workforce have both increased the amount of tax governments can collect, and decreased the amount of family allowances, or family tax benefits, governments have to pay out to families.

It seems particularly unfair that women, and especially working married mothers, have not been allowed to benefit from the extra tax revenue their work has generated. Instead their usually modest second incomes are effectively much more highly taxed than the incomes of others.

Ordinary working families are paying for tax breaks for the rich

Indeed, it is interesting to ask where all the extra female generated revenue has gone, together with the savings from their loss of family tax benefits. It clearly has not gone to women, whether in the paid workforce or not, or even to their families. It rather looks as if it has gone into supporting a superannuation tax bonus for high income earners We believe that women struggling to support families on low to average incomes should not be the people who are the most heavily penalized by the tax system. Given how much work mothers routinely do at home it seems particularly mean spirited to then take a disproportionate amount of tax from them when they go out to work.

Complex tax and transfer rules make it harder for everyone to understand inequities in the system

NFAW wants a fairer tax system for Australian women

On behalf of women, the NFAW will be recommending to the Henry Review an individually based, progressive personal income tax system combined with universal family allowances. It will be simple to understand, simple (and therefore more cost effective) to administer and, most importantly of all, fair and transparent to all.

We look forward to a tax system that will no longer discriminate on the basis of workforce participation, family structure or gender.

Further information

Marie Coleman 041 4483067

Marian Baird 043 8167963

Patricia Apps 49 17629230254 (Germany April 1-3) or e-mail