8legs: Parliamentary budget office

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Infuriating reason Aussies are $2,000 worse off every year

Latest: Critics say bracket creep leaves Australians about $2,000 worse off per year due to non-indexed tax thresholds.
Supporters argue inflation pushes workers into higher brackets even as living standards stay the same.
Budget outlook shows tax-to-GDP ratio rising, with 2023-24 hitting a record 12.7% of GDP for personal income tax.
Opponents say higher tax receipts reflect policy choices, not real purchasing power gains.
Treasury reviews include unwinding capital gains concessions and restricting negative gearing.
Jim Chalmers says reforms aim at intergenerational fairness as budget decisions loom.
Analysts warn about long-term intergenerational inequity if brackets aren’t indexed annually.
The May budget is set to consider tax changes affecting property investors.
Official analyses show the Albanese government’s tax take as a share of GDP has been high historically.
Opposition cites budget data to claim higher tax burden across the economy.

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