Following on from the rejected Tax Working Group recommendations in relation to capital gains tax, the Welfare Expert Advisory Group has now put forward some recommendations
The group’s report was released early this week and included 42 recommendations for improving the welfare system including some impacting the tax system. Following are some of the key recommendations:
- Increasing Family Tax Credit rates; The group suggests that the family tax credit should increase to $170 a week for the eldest child and to $120 a week for subsequent children
- Replacing the In-Work Tax Credit and the Independent Earner Tax Credit ($520 for those earning between $24,000 and $48,000) with a new tax credit
- Introducing an Earned Income Tax Credit of up to $50 a week for those with and without children and with a couples-based income test
- Making the Best Start Tax Credit universal for all kids under 3 years old (only applies to families with a child due or born after 1 July 2018)
- Subsidise housing costs for low income earners and ensuring the combination of changes to housing support and abatement rates to make households better off
It would be interesting to see the Government’s response to these recommendations.