A comparative historical analysis of developments in the family tax-transfer system in Australia and the United Kingdom between 1972 and 2007

Australia and the UK have much in common: both have relatively stable political and economic institutions; both are considered liberal democracies; and both provide support to families through the tax-transfer system. However institutional, political-economic and demographic differences influence the design of that support at particular points in time. This thesis compares and evaluates family support delivered through the tax-transfer system in Australia and the UK from 1972 to 2007, a period of economic and social transition in both countries. It explores the various policy objectives of the family tax-transfer system in each country over this period; the policy instruments adopted; and the effectiveness of these instruments in achieving their stated policy objectives.The thesis is policy orientated and multidisciplinary, incorporating elements of tax policy, sociology and economics. It is a comparative historical study of the development of the family tax-transfer system in the two countries, based on archival research including government reports, legislative instruments, cabinet minutes, contemporary commentary and reported data. Institutional theory, particularly path dependency theory, is used to trace the historical development of the system in each country and to explore the reasons why policy developments diverged or converged from time to time. A second theoretical lens applied is gender equity, examining the impact of the family tax-transfer system on women as carers of children.The thesis consists of seven chapters. Following the introductory chapter, Chapter 2 establishes the core tax design principles in the context of the family tax-transfer system. Chapters 3 and 4 trace developments in Australia and the UK respectively between 1972 and 2007. The comparative examination of the two countries in Chapter 5 evaluates the effectiveness of measures in each country, while Chapter 6 draws conclusions as to the reasons for the outcomes of specific measures. Finally the thesis sets out recommendations for reform, drawing on policy lessons from both countries.The analysis finds that delivering family benefits as targeted transfer payments has been redistributive, moderating the impact of less progressive income tax rates, with strategies addressing child poverty most effective when given political priority. To reduce complexity, system design must take account of institutional history and whether one payment can effectively address multiple policy goals