Fact sheet

Fact Check: Is the Government's income tax relief focused on female taxpayers?

Liberal Party of Australia Tax cuts Women economic conditions

Ahead of the 2019 federal election, debate turned to the fairness of the Turnbull Government's tax package. Kelly O'Dwyer, the Minister for Revenue and Financial Services, and Minister for Women, weighed in, claiming the tax cuts were "good for women" because they were focused on people earning $90,000 or less ' many of them women. But Ms O'Dwyer's claim is misleading. While it is accurate to say 86 per cent of female taxpayers have a taxable income of $90,000 or less, the argument that this is where the Government's "tax relief" is "focused" is problematic. Only the first tranche of measures, beginning this financial year, favour people with taxable incomes of $90,000 or less. It is, however, important to point out that very low-income earners do not benefit because they pay little or no tax (moreover, a greater proportion of these very low wage earners are women). Meanwhile, the second and third stages of the tax plan, beginning July 1, 2022 and July 1, 2024, unambiguously favour people on higher incomes. Taken in its entirety, over seven years, the bulk of the benefits of the plan will flow to people earning more than $90,000 and, at the end of this period, those earning more than $90,000 will carry a smaller share of the overall tax burden. A clear majority of these taxpayers are men.
Verdict: Misleading

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