Labor premier Chris Minns breaks ranks to slam Anthony Albanese's government
NSW Labor Premier Chris Minns has broken ranks with his own party to criticise the Albanese government over bracket creep, arguing the 47 per cent top marginal tax rate means high-income earners are effectively spending almost half the week working for the government.Backing Liberal Leader Angus Taylor's pledge to index Australia's tax brackets to inflation, Minns said families were being 'stung' as bracket creep pushed workers into higher tax bands.The government has faced criticism for not doing enough to address bracket creep following its controversial Budget. Bracket creep occurs when inflation and wage rises push workers into higher tax brackets, even though their actual spending power may have barely increased due to inflation running hot.Minns said improved state wage agreements for nurses, paramedics and teachers were being undermined by growing tax burdens.He urged his federal Labor colleagues to reform the tax system so Australians could keep more of their earnings.'Whether it's in this Budget or it's in the future, we do need to make sure that we're doing everything we can to hand more money back to working Australians,' Minns said.'It's a tough burden for a lot of families to bear.' NSW Premier Chris Minns has blasted bracket creep, arguing a 47 per cent top marginal tax rate leaves high-earning employees working almost half the week for the government Anthony Albanese's government has faced criticism for not doing enough to address bracket creep following its controversial BudgetMinns said Australians paying the top marginal tax rate of 47 per cent, which includes the two per cent Medicare Levy, were effectively handing almost half their working week to the government.'The top marginal rate of 47 per cent, as I said in parliament last week, you're working Monday, Tuesday, and half of Wednesday for yourself, and then Wednesday, Thursday, and Friday for the government.''In a general sense, whether it's now or in the future, we do need to make sure we're taking urgent action when it comes to personal income taxes because at the moment, a lot of working families are getting stung.'Australia uses a progressive tax system, meaning people pay higher tax rates as their income increases - but only on the part of their earnings that falls within each bracket, rather than on their entire income.Aussies pay no tax on income up to $18,200 under the tax-free threshold. Income between $18,201 and $45,000 is taxed at 16 per cent. Earnings between $45,001 and $135,000 are taxed at 30 per cent, income from $135,001 to $190,000 is taxed at 37 per cent, while any income above $190,000 is taxed at 45 per cent.Under the Coalition's proposed indexation plan, the bottom two income tax brackets would be automatically adjusted for inflation from 2028–29, with the top two brackets to follow from 2031–32.Join the discussionAre Australian workers being taxed too highly? Taylor claimed the changes would leave the average taxpayer about $250 better off in the first year, with that benefit growing to around $1,000 a year by the fourth year.Treasurer Jim Chalmers told ABC's Insiders the Coalition's indexation plan would be inflationary. When you provide these tax cuts you have to do it in the most responsible and affordable way, and you have to take into consideration the economic conditions at the time,' he said.'What Angus Taylor is proposing to do is to pump the most money into the economy when inflation is already at its highest.'
