Whether income-splitting is introduced or not, something has to be done to tackle high marginal tax rates, according to KPMG tax partner Paul Dunne.

KPMG has released issue two of its publication taxmail, which this time looked at the issues paper on income splitting for couples with children that was released last week.

It followed the income splitting discussion document issued by the previous government last year and was part of the confidence and supply agreement between National and United Future.