Improving Work Incentives and Incomes for Parents: The National and Geographic Impact of Liberalising the Family Tax Benefit Income Test.

• Autores: Ann Harding, Quoc Ngu Vu, Robert Tanton, Yogi Vidyattama
• Localización: Economic record, ISSN 0013-0249, Vol. 85, Nº. 0, 2009, págs. 48-58
• Idioma: inglés
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• Resumen

  • The effective tax rates and possible work disincentives created by Australia’s tax and welfare systems have been receiving extensive policy attention in recent years. Family Tax Benefit-Part A (FTB-A) is one of the key causes of high effective marginal tax rates for many families. This study uses national and spatial microsimulation models to evaluate the national and local impacts of a possible FTB-A reform option, which involves reducing the income test withdrawal rate associated with the FTB-A income test. The modelling suggests that the option would be an effective way to reduce high effective marginal tax rates for around 415,000 parents of FTB-A children, would benefit around 850,000 families, and would deliver additional assistance to middle income families living on the outskirts of our cities.