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Average Aussie worker to ‘creep’ into 37pc tax bracket by 2031

Michael Read

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.

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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com

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    Original URL: https://www.afr.com/policy/economy/average-aussie-worker-to-creep-into-37pc-tax-bracket-by-2031-20250313-p5ljdc