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Research shows importance of income splitting

Tuesday, 29 August 2006

Copeland: Research shows importance of income splitting

New research from Massey University on working mothers has been welcomed by United Future MP Gordon Copeland as proof again of the importance of income splitting for tax purposes.

The study, lead by Professor Phil Gendall, surveyed 1300 people aged 18 and over from all over New Zealand. Only 2% of those surveyed approved of mothers with young children returning to full-time work.

“Stay-at-home parents, whether they be male or female, do play a crucial role in keeping New Zealand families running like a well-oiled machine. United Future’s income splitting policy recognises and values this,” Mr Copeland said.

“Just as the government subsidises childcare for those returning to work, it should also acknowledge the contribution of those who have decided to forego a full double income to stay at home with their pre-school children.”

With income splitting, the income of both parents is combined and then divided equally for tax purposes, which can mean that they pay less tax since it is levied at a lower rate.

United Future launched an income splitting calculator for its website in May 2006. The calculator can be found at


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