Study Reveals Post-GST Income Tax Surge: Aussie Workers to Pay $500 Billion Extra

Governments can choose not to act on bracket creep because it brings them extra revenue without having to announce unpopular tax increases.
Study Reveals Post-GST Income Tax Surge: Aussie Workers to Pay $500 Billion Extra
An Australia dollar note is seen in this illustration photo on June 1, 2017. Thomas White/Illustration/Reuters
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When Goods and Services Tax (GST) was introduced to Australia in 2000, income tax accounted for around 36 percent of the government’s total tax take.

The new consumption tax was sold to the public partly on the basis that the wider government would have an additional source of revenue—which would be given to the states—and not only would a range of inefficient taxes be abolished, but the future need for income tax increases would be reduced.

Rex Widerstrom
Rex Widerstrom
Author
Rex Widerstrom is a New Zealand-based reporter with over 40 years of experience in media, including radio and print. He is currently a presenter for Hutt Radio.
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