Tax reform: bracket creep – AFR article

Tax reform: bracket creep – AFR article

In this article, originally featured in the Australian Financial Review (AFR), Grant Wardell-Johnson explains KPMG’s proposal to combat the stealthy, regressive and hidden scourge of ‘bracket creep’.

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Tax reform: bracket creep – AFR article

We propose linking tax bands to average full time earnings and creating four new rates of tax, including a new 45 percent rate for salaries above $160,000.

The current $18,200 tax-free threshold would be abolished and a new 15 percent rate between $0-$27,000 established. Low earners would be get a tax offset.

The public would see the tax brackets as fairer if they were linked to average full-time earnings rather than the usual solutions of linking thresholds to wage growth or price inflation.

Tax Reform

Tax Reform

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