Jim Chalmers’ surprise federal budget tax cuts will be eaten up by bracket creep within three years, with experts rubbishing the government’s claims they represent meaningful reform and will help on the cost of living.

Every taxpayer will get a new tax cut from the $17.1 billion election pledge due to start from July 2026. Under the plan, the 16 per cent tax rate that applies to taxable income between $18,201 and $45,000 a year will be reduced to 15 per cent next year, and lowered to 14 per cent a year later.