The Business Council has recommended the Senate to pass the Income Tax Relief Bill without amendment for the following reasons:
- It will begin the process of addressing bracket creep by keeping 500,000 people out of the third tax bracket. Over 3 million taxpayers are expected to benefit overall.
- If we do not begin to tackle bracket creep, it will actually make the personal tax system less progressive, hurting lower- and middle-income earners.
- Australia’s personal tax system will need to be competitive with other advanced economies as workers become increasingly mobile. Attracting the best talent is critical to improving productivity and economic growth.
- With an ageing population and reduced labour force participation, it will be imperative that the personal tax system does not discourage people from entering the workforce or taking on more hours.