Taxed and Wasted - Aussies slugged by the tax man

Recent OECD data has confirmed what we at the Australian Taxpayers’ Alliance have been cautioning against for months: Australia experienced the highest increase in average income tax among developed nations in 2023.

Earlier this year we spoke to Shannon Molloy about the hidden tax increase the federal government slugs everyone with each year: Bracket Creep. In it, we outlined how bracket creep and other structural factors generate roughly $10 Billion per year in extra tax revenue.

This hidden tax increase has been brought to light by the OECD report, which shows that middle-income earners have been particularly hard hit by bracket creep in the last year.

This ABC Article published last week explains: "Australia's average income tax rate increased by 7.6 percent...the largest out of any developed country in the world," underscoring the harsh realities of our fiscal environment.

Our early insights anticipated these shifts, projecting significant impacts from bracket creep which would worsen without proper tax bracket adjustments. The situation now sees an estimated 700,000 workers taxed at the highest rate of 47%, a threshold unchanged since 2009 and considerably lower than international standards.

We must hold the Labor government accountable. The stage 3 tax cuts set to start in July this year are a small step in the right direction, but they don’t go anywhere near far enough to compensate for over a decade of bracket creep. The government needs to further cut tax rates across the board, and to index tax brackets so that hard working families aren’t continually slugged with the hidden bracket creep tax increases.

Our organisation remains committed to pushing for better tax policies. Our message is clear: We need actionable reforms, not just promises. 

Over the coming months we will be releasing a comprehensive tax cutting agenda that will address bracket creep, ensure working families keep more of their own income, and boost productivity to get the economy growing again. 

Stay informed and ready to act. Together, we can push for the changes necessary to ensure that all Australians are taxed fairly.

Your support is crucial in this ongoing battle.