The Greens do not support any cuts to income tax, saying they would be too costly at a time when money is needed for schools, hospitals and infrastructure.
While Treasurer Scott Morrison has tried to dilute expectations for personal tax cuts to combat bracket creep, he hasn't ruled them out completely for when he hands down his tax package in the May 3 budget.
The Greens have had the Parliamentary Budget Office cost the price of addressing "bracket creep" which will push 300,000 middle income earners into the second highest tax bracket over the coming years just through wage inflation.
Lifting the top end of the $37,001-$80,000 tax bracket to $90,000 would cost the budget nearly $4 billion over the next four years and $17.5 billion over the next decade.
A smaller increase to $85,000 would cost almost $10 billion in the next 10 years.
"With slow wages growth, low inflation and government revenue problems, it's the wrong time to focus on bracket creep," Greens treasury spokesman Adam Bandt said on Wednesday.
"The Greens will not join a tax cuts arm race."
However, small businesses, which enjoyed a company tax cut in the last budget, are pushing for a tax reduction for their larger counterparts.
The tax rate for small business was cut to 28.5 per cent while the rate for larger firms it was left at 30 per cent, a level the Business Council of Australia says makes Australia uncompetitive.
A survey by business software provided MYOB found over half of small and medium sized businesses agree.
MYOB boss Tim Reed said while it was encouraging that the government reduced the rate for businesses with an annual revue of $2 million or less, company tax affects businesses of all sizes.
"The current system discourages SMEs to grow beyond $2 million in revenue because they then lose many of the benefits of being a small business," Mr Reed said.
"These barriers to growth need to be removed."
