Parents’ Choice
Media Statement: For Immediate Release
Monday 28 April 2008
Income Splitting Moves Step Closer
Parenting lobby group – Parents’ Choice – welcomed the release of a Discussion Paper on Income Splitting by Revenue
Minister, Peter Dunne.
“Parents’ Choice welcomes the release of this document as another move towards the introduction of Income Splitting and
recognition of the work of “at home parents” said Chairman, Roger Ellis.
“Income Splitting is the missing element in New Zealand’s tax system. It provides greater fairness for families who
would like to have increased flexibility so that at least one parent can spend more time with the children” said Mr
Ellis.
“New Zealand has failed to keep pace with recognising the value of at home parenting. More than a dozen OECD countries
allow some form of joint tax assessment. New Zealand needs to catch up with the more progressive countries that
recognise the value of parenting and allow parents the freedom to choose how they will parent” said Mr Ellis.
The advantages of income splitting go beyond the purely financial. Creating a level playing field for parents to choose
whether they wish to be at home with the children, or return to work, could have substantial benefits for children and
for society in general. Attachment between child and adult, especially during the first five years, is believed to be
vitally important in terms of a child’s development. These factors should also be considered when deciding whether to
introduce income splitting.
Parents’ Choice will be canvassing supporters and providing a submission on income splitting. We urge all other
parenting groups to make their views known on this very important aspect of tax reform.
Submissions close on June 30th and can be sent to the IRD Deputy Commissioner. The IRD Discussion Document can be found
online at:
http://www.taxpolicy.ird.govt.nz/publications/files/incomesplittingdd.pdf
The Parents Choice blog can be found at www.parentschoice08.blogspot.com
ENDS