Australians are losing more of their income to tax than in decades, new report shows

This sharp increase wasn’t because the federal government hiked income tax rates in 2022-23. Why taxes keep creeping upIn Australia, unlike many comparable countries, the income thresholds at which higher tax rates apply are not indexed to inflation. So he’s now being taxed at 16% on every dollar earned over this threshold (although his tax is reduced by the Low Income Tax Offset). But without indexation of tax brackets, the trend for bracket creep to raise average tax rates will continue in coming years. Keeping the tax burden fairWhy does the rise in the average tax rate on income – particularly income from work – matter?