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Mothers Have Little to Show for Extra Days of Work Under New Tax Changes

Miranda Stewart

Published : 2018


The federal government’s new Child Care Subsidy (CCS) starts from July 2, 2018. The government has also announced personal income tax cuts. But these policies still don’t stop many women facing high effective marginal tax rates – as much as 95% for those in low-income households – on income from extra days worked. This is because the extra earnings interact with policies including income tax rates, the Medicare levy and losing family benefits, combined with the net cost of child care.

University of Melbourne Researchers