Strong Support For Income Splitting

New Zealanders from all walks of life have given an overwhelmingly positive response to the idea of Income Splitting. Over 205 written submissions were received by Inland Revenue, 90% of which supported the proposal and only 7% opposed it.

Seventy percent of submitters said income splitting should be optional and income should be split on a 50/50 basis.

United Future Leader, Peter Dunne, said "UnitedFuture has long championed income splitting as an option for families who want to be able to have one parent stay at home and carry out the vital duties of raising children and strengthening families.
This level and tone of response shows that New Zealanders also support income splitting."

Parents Choice '08 believes that Income Splitting provides greater flexibility to parents and enables parents to determine work and child care arrangements.

Income Splitting Moves Step Closer

Income Splitting Moves Step Closer
Monday, 28 April 2008, 9:55 am
Press Release: Parents Choice '08

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

Income Splitting Moves A Step Closer This Month

Income Splitting moves a step closer to implementation this month with the public release of a Discussion Paper by the Minister of Revenue, Peter Dunne.

Income Splitting is a way for parents to split their combined incomes so that they collectively pay less tax. It is also a way for governments to give recognition to the role of at home parents. If Income Splitting is to win sufficient support in parliament then we need to have as many parents as possible write to their local MPs asking them to support income splitting.

Parents' Choice 08 encourages parents who believe in the value of parenting to also write to the Minister of Revenue and ask for a free copy of the Discussion Paper when it is released. Postage is free. Just write to : Hon Peter Dunne, Minister of Revenue, Parliament Buildings, Wellington.

Parents could use a tax cut too

This week the government cut the company tax rate to 30 per cent - down from 33 per cent.
“Reducing the company tax rate will allow successful businesses to re-invest a greater share of their profits in new technologies and in further building-up the skill base of employees,” Minister of Finance, Dr Cullen said.

“We expect that lowering of the company tax rate will serve to strengthen the competitiveness of New Zealand-based companies, and that is good for the long-term interests of all New Zealanders,” Minister of Revenue Peter Dunne said.

The cut to the company tax rate to 30 per cent is the first time the company tax rate has been reduced in New Zealand since 1988.

Dr Cullen said that the latest initiative is part of the Labour-led government’s economic transformation package that includes the significant moves on depreciation and other business tax measures announced in 2005, tax credits for R&D and changes to the tax treatment of savings vehicles.

It's good to see that many small and medium sized businesses will get some relief through lower taxes. But what about families relying on one main income? Parents Choice is writing to the various political parties urging them to give greater recognition to the plight of two parent families and to allow income splitting for tax purposes.

Income Splitting - An Idea Whose Time Has Come

During the last two weeks Parents Choice has received a significant number of emails and comments from people supporting income splitting and from news media interested in the campaign. The tide is coming in and support is rising for income splitting.

In the past 14 days alone various media including "Norwester", "Challenge Weekly", "Shine TV", "Scoop", and overseas websites have all published articles and news reports about the Parents Choice campaign for income splitting. We have had expressions of support from Whangarei, Auckland, Hamilton, Tauranga, Waikenae, Lower Hutt, Wellington, and Christchurch. It has been amazing to see the widespread interest in a policy change that will show New Zealand values families and the investment of time and effort in raising children.

Please pass on the contact details to friends and relatives who might be interested in indicating their support for income splitting. We need the campaign to continue to gather momentum during March so that by the time the Government's Discussion Paper is relased there is already a strong movement for change. Email parentschoice08@gmail.com and show your support today. United Future has already pledged its support for Income Splitting. We believe that over the next few months National, Labour and other parties will also see the need to signal their support for the hundreds of thousands of full time parents who are busy investing in the next generation.