Australia\u2019s family tax system is \u201cunfair\u201d, according to leading demographer Professor Peter McDonald, as birthrates fall and the migration debate intensifies.<\/p>\n
Speaking to the 7NEWS podcast The Issue, Professor McDonald said support for families has been steadily eroded, with fewer households now receiving Family Tax Benefit payments than in previous decades under broader family support schemes.<\/p>\n
\u201cWe\u2019ve been taxing away the family tax benefit and I\u2019m a pro-child person so I think that\u2019s unfair,\u201d Professor McDonald told the podcast.<\/p>\n
\u201cWe should be looking at better ways to be supporting families with children.\u201d<\/p>\n
He said stronger family policy wasn\u2019t only about lifting the birthrate.<\/p>\n
\u201cThey\u2019re making life more comfortable for Australian couples, they\u2019re providing education to Australian children and so on.\u201d<\/p>\n
In 2022\u201323, only 42 per cent of Australian families received Family Tax Benefit Part A, while 35 per cent received Part B, which is aimed at single parents, grandparent carers and single-income couples. <\/p>\n
Australia\u2019s fertility rate now sits at a record-low 1.5 children per woman, although among Australian-born women it is higher at 1.7.<\/p>\n
The issue is now colliding with a broader political fight over migration, tax and childcare.<\/p>\n
One Nation backs income splitting for couples, which would allow taxable income to be shared between parents and reduce the total tax paid. The Parliamentary Budget Office previously costed a similar policy at $12 billion a year.<\/p>\n
Speaking to 7News, One Nation MP Barnaby Joyce said income splitting \u201calso comes at a saving\u201d because \u201cif a person\u2019s at home looking after their children then they don\u2019t need that daycare position to look after their children\u201d.<\/p>\n
\u201cAs a nation we have to have more babies. If you don\u2019t have babies, then you\u2019re going to have to import them, which means that that comes in the form of immigration,\u201d Mr Joyce said.<\/p>\n
Professor McDonald rejected that approach, arguing it could discourage women from staying in the workforce.<\/p>\n
\u201cSure there are some women who would prefer to stay at home and look after the children, they\u2019re usually people whose husbands aren\u2019t making a lot of money,\u201d Professor McDonald said.<\/p>\n
\u201cBut today women are more highly educated than men, they are career oriented, they want to work.\u201d<\/p>\n
The Coalition has flagged a broader families package for the 2028 federal election, while Labor is continuing to focus on childcare reform.<\/p>\n
Anthony Albanese has said he wants universal childcare to be part of his legacy, with the government\u2019s Child Care Subsidy now offering eligible families three days of subsidised care a week, although households earning more than $538,520 are excluded.<\/p>\n
The debate is also feeding into the wider migration fight. Labor is aiming to reduce annual net overseas migration to 225,000 by 2027\u201328, while the Coalition wants the figure below 200,000 and One Nation is pushing for 130,000 temporary and permanent visas a year.<\/p>\n
But Professor McDonald told the podcast that permanent migration should be prioritised over temporary arrivals, arguing high turnover on temporary visas is hurting productivity. <\/p>\n
\u201cIt\u2019s a very, very unpopular statement to make, but I think that permanent migration should be higher,\u201d he said. <\/p>\n
\u201cChurning over temporary migrants is a reason for the decline in labour productivity.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Australia\u2019s family tax system is \u201cunfair\u201d, according to leading demographer Professor Peter McDonald, as birthrates fall and 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