WoLFi TaLEs

The National Foundation of Australian Women (NFAW) are doing a great job getting behind some really important issues for women including paid parental and pay equity. One of their latest campaigns broaches a subject that is loved by some and loathed by many _ _x, as shown in the NFAW’s YouTube segment.

So why is the issue of tax so important to WoLFi? Basically because the tax model in Australia is based on the rather outmoded view of women as being still dependent on a male breadwinner. The reality is that  dual income families now far outnumber the traditional model. However our tax system has not adjusted accordingly. If mothers return to the workforce after children they may loose the family tax benefit B, may loose some tax offsets, and will be slugged with the medicare levy. By becoming the secondary earner,  mothers will potentially loose a third of their earning to these tax penalties. (See Marie Coleman, chair of the Social Policy Committee of NFAW, interview on ‘Life Matters’ for more).

It is no surprise that many women question whether it is worthwhile to go back to work after having children, when they are penalised by the tax system, and have to consider the added cost of child care. NFAW are putting a submission in to the ‘Henry Review’ which will look at changing our archaic tax system to one that is more gender balanced.