Govt won't move yet on income tax creep

The federal government won't consider changing tax rate thresholds to address so-called bracket creep until the budget is in surplus.

The federal government is in no hurry to prevent more Australians paying higher rates of income tax.

Wages growth and inflation will lead to more people paying higher average rates of tax due to so-called bracket creep over the next decade.

If it's not addressed anyone earning more than $80,000 a year will be paying tax at the second highest level of 37 cents in the dollar.

But Assistant Treasurer Josh Frydenberg says the government won't consider adjusting the tax rate thresholds until it achieves budget surpluses.

"But certainly over time we do not want to see people go into the higher tax brackets," he told ABC television on Monday.


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Source: AAP


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