Mass Bracket Creep should urge rethink
A report published by the Parliamentary Budget Office that highlights more than 1.8 million Australians will pay higher taxes by virtue of bracket creep is a matter of concern. The analysis further shows that a return to surplus is, at present, largely predicated on the additional taxation revenue from bracket creep.
This mass bracket creep shows that our tax system is currently working against aspiration and hard work. We should have a system that rewards people who work hard and take home extra money to meet cost of living pressures.
While bracket creep has always been an issue, the large scale of the bracket creep that will shortly occur means that a more thorough analysis should take place as to how its impact can be minimised. I believe it’s unfair for us to simultaneously increase taxes through bracket creep while continuing to increase the level of debt which will need to be paid back with interest.
Clearly, government has a spending problem not a revenue problem. This is made worse by a lack of debt ceiling and a Senate Crossbench that shirks the difficult decisions in cutting excessive spending. If the Senate were to be convinced of the serious need for a reduction in spending, we could both ensure a return to surplus while negating the impact of the pending mass bracket creep.
With the Parliament returning next week, I will continue to draw the attention of the Senate Crossbench to the intergenerational injustice it continues to impose on young Australians.