The former head of the Productivity Commission, Michael Brennan, says Treasurer Jim Chalmers should consider lifting income tax thresholds annually to lower the burden on workers as new forecasts show the average Australian worker is on track to enter the 37 per cent tax bracket by 2031.
Raising the tax brackets in line with annual inflation or wages growth would effectively deliver workers a nominal tax cut on July 1 every year, regardless of which major party held office, rather than sporadically every few years when it was deemed affordable.