Income splitting: nice in theory, unaffordable in practice

One Nation proposes allowing wage-earning couples with children to split their income and file joint tax returns, potentially saving thousands of dollars in taxes each year.

Senator Pauline Hanson launched One Nation’s income-splitting policy in January, which permits couples with at least one dependent child to combine their incomes and divide the total equally for tax purposes. This approach is intended to lower the tax burden on higher-income households while providing immediate cost-of-living relief to families.

Couples would be able to file tax returns jointly or independently, allowing them flexibility based on their financial status.