I’ve done some calculations on what the tax cuts mean for working families who get WFF payments. The assumption is one parent working rather than two, which is the conservative scenario maximising tax paid.
The pink line is the standard average tax rate at each $10,000 band.
If you have even just one child you do not pay any income tax until you are earning $42,000! And you keep receiving WFF until you earn $74,000.
With two kids, then your family pays no income tax $50,000 of income. And you receive WFF until you earn $89,000.
If kid number three turns up, then you pay no tax until $56,000 and you receive WFF payments until you income exceeds $105,500.
And for the Catholics amongst us, kid number four means no net income tax until you reach $63,000. And you keep getting WFF until your combined earnings exceed $120,500.Tags: tax, WFF