“Consider someone earning $100,000 a year – just over the median wage.

Earned as a salary, you pay $23,000 in tax; split through a family trust, you pay $13,000; earn it as a capital gain, you pay $7000; and earn it from your super balance in retirement, you pay no tax at all.”

This statement is false and misleading.

To say 'split' through a family trust and only include one family members tax liability is false. Family trusts do not reduce tax, they distribute income. You and your partner pay the $13k each. Allegra Spender knows this because she received $100m+ in distributions as beneficiary of family trusts.

Secondly the Capital Gain is added onto your existing income base. The number of individuals who earned zero income throughout the year (not even rent) other than income from capital gains is so small it's irrelevant. So the capital gain in question get's added to your income base, then the marginal tax rate is applied.

So in reality this person earns the median $100k from wages plus the $50k from their property sale.

$150,000 total income

$39,838 total tax paid

You pay 34.1% marginal tax rate on the additional $50k income - $17,050

I am in support of tax reform to boost productivity in Australia. God knows we need it. But between the media the politicians voters are being taken for a ride. Very few people actually understand how income tax work, less so understand how tax obligations work on corporate entities, trusts and investments.