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Financial incentives to work for married mothers under a new tax system

Author

Listed:
  • Matthew Toohey

    (University of Canberra)

  • Gillian Beer

    (University of Canberra)

Abstract

The introduction of A New Tax System in July 2000 included substantial changes to social security payments, including family assistance and child care subsidies. Most of these payments are income tested, so that as a family’s income increases the amount of government assistance it receives is reduced. This article analyses the impact of increasing income and child care costs on the financial incentives for women with children to increase their participation in paid work. The results show that for some families increasing the mother’s hours of work has a very small impact on the family’s disposable income.

Suggested Citation

  • Matthew Toohey & Gillian Beer, 2004. "Financial incentives to work for married mothers under a new tax system," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(1), pages 53-69, March.
    • Handle: RePEc:ozl:journl:v:7:y:2004:i:1:p:53-69
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    References listed on IDEAS

    as
    1. David Ingles, 2000. "Rationalising the Interaction of Tax and social Security: Part II: Fundamental Reform Options," CEPR Discussion Papers 424, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    2. Ann Harding & Josh Polette, 1995. "The Price of Means‐Tested Transfers: Effective Marginal Tax Rates in Australia in 1994," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 28(3), pages 100-106, July.
    3. Gillian Beer, 1998. "The State of Play of Effective Marginal Tax Rates in Australia in 1997," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 31(3), pages 263-270, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Fiscal Policies and Behavior of Economic Agents: Household (effects on labor supply) Social Security and Public Pensions Econometric Modeling: Other;

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • C59 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Other

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