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Is it worth working now? Income incentives and disincentives for working mothers under Australia’s new tax system
Matthew Toohey and Rachel Lloyd
National Centre for Social and Economic Modelling, University of Canberra
Contact Email: matthew.toohey
natsem.canberra.edu.au
The introduction of A New Tax System in July 2000 was accompanied by substantial changes to social security payments, including family assistance and childcare subsidies. Most of these payments are income tested, so that as a family’s income increases the amount of government assistance they receive is reduced. This paper analyses the impact of increasing income and childcare costs on the economic incentives for women with children to increase their paid work under the new tax and transfer arrangements. It compares the work incentives under the current and previous systems of family assistance using the Effective Tax Rates model in STINMOD, NATSEM’s static microsimulation model of the tax and transfer system.
Paper
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Paper170.pdf
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Copyright © 2003 Social Policy Research Centre.
