The average taxpayer will lose $2000 to bracket creep by 2028 unless there is another round of tax cuts, as projections show the Albanese government will reap an extra $29 billion in revenue from the “stealth tax” on workers’ incomes.

Economists warn Australia’s tax system is increasingly reliant on slugging workers, and Treasury’s Intergenerational Report last year predicted personal taxes would hit 60 per cent of the overall federal tax base in the coming decades without “policy change”.