Family First policy gains ground as Liberals consider income splitting

Family First policy gains ground as Liberals consider income splitting

Family First welcomes the growing interest in income splitting from Liberal MPs like Queensland Garth Hamilton and South Australian Senator Leah Blyth.

This is a clear sign that the mainstream political debate is finally catching up with policies long championed by Family First to support families and ease financial pressure on parents.

Income splitting allows a couple to pool their earnings and be taxed as if each partner earned half the total income. For example, if one parent earns $120,000 and the other stays home with the children or works part-time and earns $40,000, the current tax system punishes them by taxing the higher income earner at a steep rate. Income splitting would reduce their overall tax bill, easing the pressure on families choosing to prioritise raising children or caring for elderly relatives.

Garth Hamilton is right to say the tax system should have a “moral purpose.” It should encourage, not penalise, families who make sacrifices for their children. As Senator Blyth pointed out, families who prioritise caring roles are “quietly punished by a tax system that doesn’t see them.” That must change.

This is exactly why a pro-family voice like Family First is essential in Australian politics. While the major parties have often failed to prioritise the needs of families, Family First has consistently argued that Australia’s tax system must reflect the central role of families in building a strong society.

We are pleased to see our ideas influencing the national conversation. Income splitting is a simple reform that would make a real difference for young couples raising children. It would bring fairness and flexibility into the tax system and help restore aspiration to Australian family life.

Now it’s time for all sides of politics to catch up.