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The Breadwinner Tax: Are One Income Families Being Punished?

Sep 21, 2026 · 12 min · 5 segments

Welcome back to The Account Rant.In this episode, John Saade sits down with Leigh Morris from SFP Financial to talk about the “breadwinner tax” and why one income families can feel like they are…

Welcome back to The Account Rant.In this episode, John Saade sits down with Leigh Morris from SFP Financial to talk about the “breadwinner tax” and why one income families can feel like they are getting hit from every direction.One parent earns the income.The other parent stays home with the kids.The household may earn the same total amount as a dual income household, but the tax outcome can look very different.John and Leigh discuss how this affects families, childcare, disposable income, superannuation, career decisions, and the pressure many young Australians feel when deciding whether they can afford to have children.They also talk about tax brackets, childcare subsidies, income splitting, the cost of raising a family, why some work related costs are not deductible, and whether the system does enough to support families who want to have more kids.Need an accountant?GET A FREE CONSULTATION FOR ALL ABN HOLDERShttps://forms.zohopublic.com/john205/form/GENERALENQUIRYFORM/formperma/VYEBrsCV\_ompEVvnkA0eygWlJxXO5OajFsjjngf\_jzwOUR SERVICEShttps://latitudeaccountants.com.au/accounting-services/Info@latitudeaccountants.com.auThis episode covers:The breadwinner taxOne income familiesTwo income householdsWhy tax brackets matterChildcare costsChildcare subsidiesThe impact on women and superannuationWhy families feel financially squeezedCost of living and property pricesWhy young Australians are delaying kidsPopulation growth and migrationIncome splittingWork related deductionsTravel to and from workWork clothes and groomingClient entertainmentChildcare tax deductibilityFatherhood and family decisionsIf you are a parent, planning to have kids, or trying to understand why the numbers feel harder than they should, this episode is worth watching.Connect with Leigh Morris and SFP Financial:SFP Financial Websitehttps://www.sfpfinancial.com.au/Leigh Morris Instagramhttps://www.instagram.com/financial.leigh/Leigh Morris LinkedInhttps://au.linkedin.com/in/leighjmorris/SFP Financial LinkedInhttps://www.linkedin.com/company/sfpfinancialTikTokhttps://www.tiktok.com/@latitudeaccountantsInstagramhttps://www.instagram.com/latitudeaccountants/YouTubehttps://www.youtube.com/@LatitudeAccountantsLinkedInhttps://www.linkedin.com/company/latitude-accountants/Facebookhttps://www.facebook.com/latitudeaccountants/Websitehttps://latitudeaccountants.com.au/This content is general information only and does not constitute financial, legal, tax, property, insolvency or business advice. Speak with a qualified adviser about your own circumstances.

Welcome back to The Account Rant.In this episode, John Saade sits down with Leigh Morris from SFP Financial to talk about the “breadwinner tax” and why one income families can feel like they are…

How the Breadwinner Tax Hurts Families0:11 – 5:29

Leigh MorrisGuest

0:11

Yeah.

Leigh MorrisGuest

0:11

So, I mean, I guess it's quite a well-known term.

Leigh MorrisGuest

0:15

The breadwinner is the one that makes the money.

Leigh MorrisGuest

0:17

And I guess when you've got a breadwinner, we're just saying it's the breadwinner tax because that person that makes the money is being taxed more – than what would be if two individuals worked for the same amount of money.

Leigh MorrisGuest

0:32

You can use whatever amount of money you want.

Leigh MorrisGuest

0:34

I used in the video somebody making $300,000 a year.

Leigh MorrisGuest

0:39

Let's say the husband was out making $300,000 a year working FIFO or something and the wife was at home with the children.

Leigh MorrisGuest

0:46

They're being taxed tens of thousands of dollars more per annum.

Leigh MorrisGuest

0:50

versus that same husband and wife both going to work.

Leigh MorrisGuest

0:55

The issue I had with that is that we are forcing with the way that the cost of living, the way that property prices, it's very hard in itself to find a $300,000 job.

Leigh MorrisGuest

1:09

So usually what happens is you're forcing both the husband and the wife to to go to work, what does that mean when you have children? Somebody else is looking after them.

Leigh MorrisGuest

1:20

And when somebody else is looking after them, rarely is that free.

1:25

And

Leigh MorrisGuest

1:25

if anything, it's near on private school fees.

Leigh MorrisGuest

1:28

And so any tax benefit that you have gained from both people working full-time and not seeing their children is taken away by childcare, which is great, I mean, for productivity for the government, but at an individual level it sucks.

1:43

Yeah.

Leigh MorrisGuest

1:44

And it disproportionately affects women because usually they're the caretakers because, you know, when you have a baby, you know, even with my wife, I couldn't breastfeed.

Leigh MorrisGuest

1:57

I couldn't be at home all the time.

Leigh MorrisGuest

1:59

So we made the decision, you know, you stay at home for this first six months to a year and I'll go out and work.

Leigh MorrisGuest

2:06

But what you can find later on down the track is If the husband and wife gets divorced, the superannuation can often lack for the woman and they don't have retirement savings anymore.

Leigh MorrisGuest

2:19

You're right, they're not earning super.

Leigh MorrisGuest

2:21

You're getting screwed on the front

2:22

and the back end.

Leigh MorrisGuest

2:23

It's a huge kick-on effect.

2:25

The other thing is the childcare subsidy is almost not there when it's the one high-income earner.

How the Breadwinner Tax Hurts Families0:11 – 5:29

Leigh MorrisGuest

0:11

Yeah.

Leigh MorrisGuest

0:11

So, I mean, I guess it's quite a well-known term.

Leigh MorrisGuest

0:15

The breadwinner is the one that makes the money.

Leigh MorrisGuest

0:17

And I guess when you've got a breadwinner, we're just saying it's the breadwinner tax because that person that makes the money is being taxed more – than what would be if two individuals worked for the same amount of money.

Leigh MorrisGuest

0:32

You can use whatever amount of money you want.

Leigh MorrisGuest

0:34

I used in the video somebody making $300,000 a year.

Leigh MorrisGuest

0:39

Let's say the husband was out making $300,000 a year working FIFO or something and the wife was at home with the children.

Leigh MorrisGuest

0:46

They're being taxed tens of thousands of dollars more per annum.

Leigh MorrisGuest

0:50

versus that same husband and wife both going to work.

Leigh MorrisGuest

0:55

The issue I had with that is that we are forcing with the way that the cost of living, the way that property prices, it's very hard in itself to find a $300,000 job.

Leigh MorrisGuest

1:09

So usually what happens is you're forcing both the husband and the wife to to go to work, what does that mean when you have children? Somebody else is looking after them.

Leigh MorrisGuest

1:20

And when somebody else is looking after them, rarely is that free.

1:25

And

Leigh MorrisGuest

1:25

if anything, it's near on private school fees.

Leigh MorrisGuest

1:28

And so any tax benefit that you have gained from both people working full-time and not seeing their children is taken away by childcare, which is great, I mean, for productivity for the government, but at an individual level it sucks.

1:43

Yeah.

Leigh MorrisGuest

1:44

And it disproportionately affects women because usually they're the caretakers because, you know, when you have a baby, you know, even with my wife, I couldn't breastfeed.

Leigh MorrisGuest

1:57

I couldn't be at home all the time.

Leigh MorrisGuest

1:59

So we made the decision, you know, you stay at home for this first six months to a year and I'll go out and work.

Leigh MorrisGuest

2:06

But what you can find later on down the track is If the husband and wife gets divorced, the superannuation can often lack for the woman and they don't have retirement savings anymore.

Leigh MorrisGuest

2:19

You're right, they're not earning super.

Leigh MorrisGuest

2:21

You're getting screwed on the front

2:22

and the back end.

Leigh MorrisGuest

2:23

It's a huge kick-on effect.

2:25

The other thing is the childcare subsidy is almost not there when it's the one high-income earner.