Copy link Copied Copy link Copied Subscribe to gift this article Gift 5 articles to anyone you choose each month when you subscribe. Already a subscriber? Login Re-engineering the tax system so it does not become a “poverty trap” would do more to encourage women to return to work after having children than access to affordable childcare, leading economists say. For women returning to work, particularly low-income mothers, the effective tax rate can be as high as 80 per cent, they calculate.
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Tax, not childcare fees, keeps women at home
The Productivity Commission and economists agree that fiddling with childcare subsidies will not increase women’s workforce participation.