Analysis from the Parliamentary Budget Office (PBO) indicates that ‘bracket creep’ will be taking $6.3 billion from the pay packets of workers by 2031-32, even when the impact of the stage-three tax cuts that come into effect from mid-2024 are taken to account.
According to the PBO, rising average tax rates will contribute $3.5 billion to government income this fiscal year and $3.8 billion the following.
The implementation of mandated stage-three tax cuts in 2024-25 will return more than $11 billion in bracket creep to employees, but by 2027-28, rising average tax rates will add $3.4 billion to tax collections, increasing to $6.8 billion in 2031-32.
