Tighten tax system to target child support avoidance: single parents

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Tighten tax system to target child support avoidance: single parents
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Tighten tax system to target child support avoidance: Single parents | swrighteconomy

Single parents are pressing the federal government to overhaul child support by bringing into the tax system tens of thousands of partners who are avoiding their obligations by failing to declare their real incomes.

Terese Edwards, chief executive of the National Council of Single Mothers and Their Children, said in too many cases parents were dropping out of the tax system altogether or moving payments through trusts, partnerships or even members of their extended family.She said by avoiding the tax system, potentially billions of dollars worth of support was being stolen from children. She described it as a form of financial coercion imposed on custodial parents.

“This is the most gender-neutral lever that could be pulled and should not attract the ire from anyone.” “I worked two jobs, gave up public holidays, Christmas, weekends so that I could give my children the life that they needed and deserved,” she said.An all-party parliamentary inquiry into the nation’s family law system late last year was told the underpayment of support was akin to stealing from children.It recommended the Family Law Act be amended to recognise the “persistent underpayment and/or non-payment of child support as relevant factors in determining the existence of abuse”.

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