The Coalition’s and Labor’s duelling income tax plans will both lead to a less progressive tax system because they don’t sufficiently address bracket creep, which disproportionately affects low and middle-income households, new modelling reveals. ANU’s comparison of the Coalition’s and Labor’s tax plans found the Coalition’s will see the average tax rate rise to 20.4% by 2027-28 – to be higher than it is now – while Labor’s will rise to 21.2%. Facebook Twitter Pinterest Increase in average tax rates by 2027-28 for Labor and Coalition as compared to 2017-18 rates. Labor’s policy favours lower- and middle-income households with modest, albeit larger, tax cuts compared with the Coalition. “The Coalition’s approach will be marginally less progressive than Labor’s, but the tax system is getting less progressive anyway,” he said.

Source: The Guardian May 15, 2018 18:00 UTC