The Australian Christian Lobby has welcomed calls from Family First senator Bob Day for the federal government to provide tax relief to families by introducing income splitting measures.
ACL’s Lyle Shelton said it was time for the Australian government to provide tax relief for families.
“Income splitting is an issue whose time has well and truly come,” Mr Shelton said. “I’m glad to see Senator Day raising this issue in the lead up to the federal budget.
“Childcare costs are skyrocketing and many young families are feeling the pinch.
“Introducing income splitting would make it more affordable for parents to choose to stay at home and raise their children.”
The Australian Christian Lobby’s calls for tax relief follow a similar call from Family First senator Bob Day.
“I gave the government notice of Family First’s desire for income splitting in question time last November,” Senator Day said, “I believe within the coalition there is support for income splitting so that couples with stay at home parents can address their living costs.”
A similar proposal was also put forward last year by government senator Matthew Canavan.
Income splitting would allow couples to combine their taxable income then split it equally between each partner. For a couple with a stay at home parent, this would double the tax-free threshold for the couple and reduce their marginal tax rate.