QUESTION 1: Tax system design [30 points] Because of the pandemic, low-income earners are entitled to a coronavirus supplement cash payment depending on their income level (in addition to any Centrelink payments, which we will ignore). The higher the income, the more the cash payment is reduced. Here are two tables that show the coronavirus supplement and reduction thresholds: Your circumstances Your maximum fortnightly payment Single, no children, younger than 18, and live at your parent's home $313.80 Single, no children, younger than 18, living away from your parent's home to study, train or look for work $530.40 Single, no children, 18 or older and live at parent's home $367.00 Single, no children, 18 or older and need to live away from parent's home $530.40 Single, with children $679.00 A couple, with no children $530.40 A couple, with children $577.40