Tax cuts the Albanese government has promoted as “meaningful cost-of-living relief” will be wiped out in just two years due to bracket creep, an economist has revealed.
Albanese government's stage 3 tax cuts to be wiped out by in two years by 'stealth tax increases' caused by bracket creep
The extra income is the result of the Stage 3 tax cuts passed by the previous Coalition government in 2018 and modified by the Albanese government earlier this year. “The stage 3 tax cuts that came into force today are a good step in the right direction, but it’s not enough,” Dr Humphreys told SkyNews.com.au.
“Today’s tax cuts are a welcome adjustment, but they will only compensate us for roughly two years of bracket creep.” The Coalition’s original stage 3 tax cuts were part of a series of cuts to income tax rates and changes to tax bracket that then-treasurer Scott Morrison said would protect Australians from bracket creep.
Bracket Creep Stage 3 Coalition Tax Cuts Inflation Labor
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