Parko: Income taxes are gonna skyrocket without reform (members)

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By Leith van Onselen

Australian Treasury Secretary, Martin Parkinson, has given an interesting speech to the ACT Young Economists Network, in which he once again highlighted that Australia’s existing tax structure is becoming increasingly narrow and how personal income taxes will rise dramatically via bracket creep as the once-in-a-century commodity price and mining investment booms unwind and national income growth slows. From Peter Martin:

“If Australia gets the same productivity growth as its long-term average, then living standard growth will be about a third to a half of what the Australian public has gotten used to over the past 10 years. You can imagine that creates quite an interesting dynamic for the political process”…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.