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The employment effects of the mature age worker tax offset

Crawford School of Public Policy | Tax and Transfer Policy Institute
Image sourced from flickr by Ken Teegardin

Event details

Seminar

Date & time

Tuesday 25 September 2018
12.15pm–1.30pm

Venue

Miller Theatre Level 1, Old Canberra House Building 73, Lennox Crossing, ANU

Speaker

Mr Andrew Carter, The Australian Taxation Office, TTPI Secondee

Contacts

Diane Paul
+61 2 61259318

This presentation examines Australia’s Mature Age Worker Tax offset (MAWTO), a targeted earned income tax credit of up to $500 to incentivise participation of older workers that existed from 2004-05 to 2014-15. Using a difference-in-differences approach, the authors find that MAWTO increased labor market participation by around 0.5 percentage points. For women only, it had a small impact on earnings of about 1.5 per cent. They estimate that the average cost for each person induced to work longer is between $37,000 and $78,000.

Andrew Carter is an Assistant Director in Tax Policy Research at the Australian Taxation Office (ATO). He has previously held tax and macroeconomic related roles at the World Bank and the Department of Treasury. Andrew is currently a part-time PhD candidate at the Crawford School in Economics. His research is examining responses to the income tax and superannuation systems. At the TTPI, Andrew will examine the degree specific superannuation incentives prolong labour market participation and boost income and savings for workers approaching retirement.

A light lunch will be available from 12 - 12.15pm, please register at the registration tab above.

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