23 Sep 2010

Income splitting tax bill passes first vote

6:43 pm on 23 September 2010

Legislation which would allow two-parent families to split their income for tax purposes has narrowly survived its first vote in Parliament.

The Taxation (Income-sharing Tax Credit) Bill would mean up to 310,000 families could reduce their tax bill by up to $9000 a year. It could cost the Government more than $400 million a year.

The bill is being championed by United Future Party leader and Inland Revenue Minister Peter Dunne who says 90% of submissions on an earlier discussion document on the policy were favourable.

The bill passed its first vote with the support of National, the Maori Party and Mr Dunne.

However, National has only committed to vote for it to go to a select committee for public submissions.