Australian Coalition pledges tax bracket indexation

Sky News reports:

Central to his address on Thursday night was Mr Taylor’s new plan to stop bracket creep from eroding living standards by indexing tax thresholds.

From 2028-29, the Coalition would index the bottom two tax brackets, with the top two to follow from 2031-32.

“That will fully protect 85 per cent of income earners, with relief of around $250 in year one, growing to more than $1,000 a year in year four,” Mr Taylor said.

An excellent policy. Not indexing tax brackets to inflation results in stealth tax increases every year. Just as we index benefits to inflation, we should also index tax brackets so those in work get treated just as fairly as those not in work.