The tax-free threshold should be indexed, not to the CPI, but to movements in the minimum wage. Every minimum wage increase leads to articles pointing out that many workers gain very little in take-home pay because of the operation of the various tax and welfare arrangements. The tax-free threshold – and all pensions - should be set at half the minimum wage. It and the low-income tax offset threshold, if it is not abolished completely, should then be indexed with every increase. Every adult should be entitled to a tax-free threshold, with those earning less than it able to allocate their tax-free threshold to their partner, an extension of the policy that Labor took to the 2004, but sadly not the 2007, election. Family Tax Benefit B should then be abolished.

Family Tax Benefit A thresholds should also be indexed to minimum wage increases so that the minimum wage earner obtains the full value of any increase. There should be no child care payments, which are effectively a subsidy paid to business by the tax payer under cover of feminism. Instead, the money currently allocated to child care payments should be added to the FTB A so that parents themselves could choose if they wanted to use their FTB A to outsource the care of their children, which they would do on rational cost-benefit grounds, asking themselves whether the job they could gain would be worth taking once the market-set child care rates had been taken into account.

Family allowances would be paid, based on the age of the child as now, but also on the number of children, as a second child does not add to housing costs like a first child can. Family allowances would phase out at 20 cents in the dollar, starting at twice the minimum wage. This would produce an initial EMTR of 50 cents in the dollar, but it would go higher once the next tax bracket was reached.

Government should tax the rich and send everyone in the community a cheque for a million dollars, thus removing the need to work and achieving the perfect society.