KPMG proposes 'radical' plan to boost economy by $700m a year by no longer penalising mothers who return to work

KMPG argues Australia's tax and transfer system needs a revamp so more secondary earners in a family can get back to work

This is what accounting and consulting firm KPMG is proposing, as part of what it calls a"radical plan" to revamp Australia's Child Care Subsidy system. The report, prepared in collaboration with Chief Executive Women , addresses one core problem: the fact that Australia's tax and transfer system is not built for the 21st century.

An OECD report calls for targeted income tax cuts as a way to boost middle-class disposable incomes and suggests curtailing tax breaks for housing.That means if married women decide to move from three or four days a week to full-time work, they lose out. Its paper notes that while the current childcare subsidy has improved the financial position of many families, others continue to face workforce disincentive rates above 100 per cent.

kpmgaustralia This is for parents who ‘want’ to return to work right? Because I’d rather see a program that supported a parents right to stay at home particularly while children are under school age. JS

so an oversupply of childcare yet costs have gone up another capitalism success story

have they taken into account the true marginal “cost” of both parents working 5 days a week with small children, as opposed to 3/4? A lot of stress and tiredness. Free childcare is not some magical solution to not enough hours in the day.

Why is the conversation about mothers only? Childcare payment should be looked at as a household expense like the groceries. The concept should be how both parents can make it work - similar to other countries esp. in Europe with flexible work agreements

How’s the level of propaganda in the headline!! The maths is simple: Mum at home + unemployed woman = 0 tax dollars Mum at work + “childcare” worker = 2 tax dollars BABIES SACRIFICED FOR ECONOMY GODS

child care should be free and govt run just like public education.

Ideas like this should not be perceived as being particularly radical. It should just be common sense policy if the numbers are correct. Why do policymakers need consultants to help them work this out?

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