7 Dec 2010

Inflated Working for Families' entitlements to be targeted

8:20 pm on 7 December 2010

The Government is to proceed with plans to prevent people structuring their income to inflate their entitlements under Working for Families.

The change was announced in the May Budget and will take effect from April next year.

It is expected to reduce spending on Working for Families tax credits by $32 million a year.

People will also not be able to structure their incomes to inflate their student allowances or entitlements under the community services card.

They are part of a range of tax changes coming into effect, including closing a loophole that allows shareholders to claim losses against their personal income.