Analysis of data from the Parliamentary Budget Office (PBO) estimates that 7.3% of Australians – or nearly 1.2 million people – will be paying the highest marginal tax rate in 2028, compared with just 3% in 2015. The PBO data also shows that the Federal Government’s total income tax revenue will rise from about $177 billion in 2016 to $378 billion in 2028. The projections are based on expectations that Australia’s population will surge to 29.1 million over the next decade. From The Australian:
The PBO pointed out that the government’s income tax windfall would be “largely as a result of wage increases driving income earners into higher income-tax brackets”. Releasing its annual 10-year budget projections yesterday, the PBO revealed the government’s personal income tax haul would almost double to $378bn by 2028 compared with last year, as the average income tax rate on incomes rose from 22.7 per cent last financial year to 25.9 per cent by 2028.
The full text of this article is available to MacroBusiness subscribers
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.
