Families pay no tax: Katter’s proposed shake up of income tax for ‘dying’ country
FATHER of the House and Katter’s Australian Party MP Bob Katter says under his “split income” taxation model, families would virtually be exempt from paying income tax.
Mr Katter said Australians were a dying race, as no one could afford to have families and the current tax models we’re favouring dual income, career-minded individuals, rather than someone wanting to raise children.
Mr Katter’s proposal comes as the Federal Government moves on its amended Stage 3 Tax Cuts, being touted as “cost of living relief.” While Mr Katter said he would not stand in the way of any relief including lower taxes, it was far-fetched to claim that about $25 a week from the government’s proposal would help Australian’s struggling with rapidly rising fuel and grocery costs.
In what would be a complete overhaul of Australia’s income tax model – Mr Katter said his split income proposal would create greater parity between a couple with double income and no kids (DINKS) and a family of four or five.
“The average income being about $100,000, tax on that is $25,000. Each individual in a DINK household is left with $75,000 disposal income.
“Now a family of five. There might be a stay-at-home parent (if they can afford it). So an average income of $100,000 is also $75,000 after tax, however, that’s split five ways – so really each individual has $15,000.
“So where would you rather be? With a disposable income of $75,000 or a disposable income of $15,000?
“So it’s pretty simple, if you’re the sole income earner for a family of five (or however many children), you’re income should be split among your dependants before tax is calculated. That means $100,000 five ways – income $20,000 each – you’re paying virtually no tax.”
Mr Katter said he noted providing extensive cuts to families would impact government revenue, which he said should be countered by a 5 per cent primage charge on all goods being imported into the country.
A recent Australian Bureau of Statistics report stated Australia imported about $500bn worth of goods; a 5 per cent charge on this figure would generate about $25bn in tax revenue. [1]
Further, Mr Katter stated Australia should be earning a greater income from its gas exports.
“When Qatar, which produces and exports the same amount of gas as us, gets $29bn for their gas and we're getting only $600m for ours, surely there is a case. Let's be conservative: surely, we should be getting $15bn. So there's $40 bn that you've got in the till.”
“So if you want to give families a fair go in this country then it's about time the word 'family' started jumping up in this place, because there aren't going to be any of us very shortly.
“I was among the first generation where women were supposed to have careers. Well, they're careering off into nonexistence. A lot of them, very sadly, are old people now. They sit at home, they have no kids to love and no kids to love them, no grandkids to love and no grandkids to love them. It's very sad because society cheated them and lied to them.”
[1] International Trade: Supplementary Information, Financial Year, 2022-23 financial year | Australian Bureau of Statistics (abs.gov.au)
