PBO: Personal income tax to soar on bracket creep

Tuesday, 22 November 2022

The Parliamentary Budget Office (PBO) has published an interesting report examining trends in personal income taxes.

The PBO notes that Australia’s reliance on personal income taxes was high in 2019 by OECD standards:

The PBO also forecasts that bracket creep will drive “personal income tax… to nearly 54% of total tax receipts by 2032-33, higher than at any time since the introduction of the GST, and close to the average between 1973-74 to 1999-2000”:

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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.