‘Obvious solution’ to bracket creep is to ‘index tax brackets’

Australian Taxpayers’ Alliance Chief Economist John Humphreys says the “obvious solution” to bracket creep – which the stage three tax cuts aimed to address – would be to “index tax brackets”.

The Prime Minister unveiled the government’s new tax plan – after dumping the much-promised stage three tax cuts – in favour of directed assistance for low and middle-income earners.

“The obvious solution to bracket creep would be to index tax brackets,” Mr Humphreys told Sky News Australia.

“This is often repeated, and it is often quickly dismissed, unfortunately, by politicians who would prefer that sneaky tax increase that they get every year.

“Our taxes are growing at about $10 billion a year more than they should if our tax system was holding constant, $10 billion a year of a secret tax increase.

“The proposal by Albanese and the Labor government to drop the bottom tax rate from 19 to 16 – that’s actually not a bad idea, but that should be part of the next round of tax cuts – they should not use that to replace the last round.”

Видео ‘Obvious solution’ to bracket creep is to ‘index tax brackets’ канала Sky News Australia