MEDIA RELEASE: CHILD POVERTY ACTION GROUP
Income splitting is inequitable and expensive says CPAG
The Child Poverty Action Group says income splitting favours high income, single earner families and would do little to
alleviate child poverty.
CPAG spokesperson, Dr Susan St. John, says, “Income splitting is very costly and will do nothing to assist low income
families in hardship.”
The policy clearly favours high income families. A household with a single earner on $60,000 can save $3,217 per year
from income splitting. However, a household on $36,000 stands to gain only $570 per year. That is, a family on just over
half the income gets less than one fifth as much tax relief.
Dr St. John says, “Income splitting will simply serve to create a bigger gap between sole parent and dual low income
families and top earners. Any policy that is serious about addressing child poverty needs to reduce this gap, not
increase it.”
ENDS