Applying gender equality to the Australian tax transfer system
Helen Hodgson
ATAX, UNSW
Contact Email:   helenh19tpg.com.au

The Review of Australia’s Future Tax System (Australian Treasury 2008) is examining the structure of Australia’s tax and transfer systems. In the same way that modern tax policy analysis now addresses global issues (Meade 1978; Australian Treasury 2008; Griffith, Hines et al. 2008), there is a key argument in the literature that gender equity issues should now be incorporated fully in tax policy design.

Feminist theorists have developed frameworks to examine the gender equity of different regimes and the impact that government policies have on gender equity (Lewis 2006). Gender equity programs, whether based on removing or acknowledging gender difference, are still largely justified by economics (Lewis and Giullari 2005). Depending on the conditions required to access such schemes in particular jurisdictions they may be seen as programs to ensure equality or to address difference (Lewis 2006).

The tax policy framework needs to consider this feminist framework. Are the traditional concepts of vertical and horizontal equity adequate as an analysis tool, particularly in view of the extent to which tax transfer measures are used to achieve other policy goals? For example progressive tax rates, for women, may be less relevant than the work/care balance (Lewis 1997; Apps 2007) although the EMTR is often excessive for women as second earners and/or receiving income support (Harding, Vu et al. 2006)

This paper applies a feminist approach to tax policy in Australia. In the process I will consider whether the traditional approach to tax transfer systems of vertical and horizontal equity is sufficiently comprehensive, or whether the framework should be updated to explicitly include aspects of gender equity (Cass 1986).

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