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The proposed cuts would hit female workers hardest as their share of income tax payments grows compared with men, says national body.
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‘Women will pay more tax, benefit least from Stage 3’
23 May 2023
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9 minute read
The income tax paid by women is growing at almost twice the rate it is increasing for men and that means the Stage 3 cuts must be rethought, says the National Foundation for Australian Women (NFAW).
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NFAW said tax reform should address bracket creep at lower income levels and review cuts for those earning more than $200,000 per year.
Chair of NFAW’s social policy committee Helen Hodgson said the government had made progress on gender equality but “there is still room for improvement”.
“Regrettably the opportunity to reform the Stage 3 income tax cuts while applying a gendered lens has not been seized,” said Professor Hodgson.
“NFAW’s analysis reveals that a disproportionate share of the projected growth in tax receipts will come from women, who will receive a significantly lower portion of the proposed tax cuts.”
“Given the scale of this reform, NFAW believes that it is crucial for the government to undertake a gender analysis of the Stage 3 tax cuts to ensure a more equitable distribution within the Australian community and address bracket creep for lower tax brackets.”
NFAW’s analysis of the recent budget data found the income tax taken from women had grown at 18 per cent over 2014–20, against just 10 per cent for men.
Other findings:
- The tax cuts would deliver $39 billion over four years to individuals earning over $200,000 per annum, two-thirds of whom were men.
- The total cost of the cuts, $69 billion, exceeded the $14 billion allocated for the budget cost-of-living package aimed at supporting the most disadvantaged.
- The $9,000 annual tax reduction for individuals earning over $200,000 per year was more than twice the increase in payments to eligible single parents earning under $30,000 per year.
Jane Madden, the president of NFAW, said the government had taken significant steps in addressing the concerns of women but more needed to be done to achieve equality, particularly in the tax system.
“While welcoming the government’s positive steps towards addressing women’s economic wellbeing and safety, NFAW emphasises the need for further action,” said the organisation.
“Increasing revenue is crucial to securing funding for the growing costs of essential services and combating poverty.”
“The government must take action on tax reform, including a thorough review of the Stage 3 tax cuts.”
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