potential 40% tax hike

[Guest Guest66881]

Accounting firm PwC has warned that, without government intervention, wage increases will see average tax payers in the middle personal income tax bracket forced into the top bracket.

PwC's report shows that average income earners will be the hardest hit, as personal income tax starts to make up a larger share of total tax revenue.

Bracket creep occurs when inflation pushes income into higher tax brackets, resulting in higher income taxes but no increase in real purchasing power.

The managing partner of tax and legal at PwC Tom Seymour says, unless income tax brackets are adjusted, individuals on $80,000 per year earnings will be paying 40 per cent of every additional dollar earned to the Commonwealth by the 2039-2040 financial year.:arghh:

https://au.finance.yahoo.com/news/bracket-creep-put-average-earners-053941642.html

[Ausborn]

Gives me 15 years to make enough money and retire at 50 in a beachfront property in vanuatu( haven) and live happily ever after.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in my dreams anyway...

[Bobj]

Gives me 15 years to make enough money and retire at 50 in a beachfront property in vanuatu( haven) and live happily ever after.

 

 

 

 

 

in my dreams anyway...

 

I retired at age 58, live 200 metres from a coconut fringed beach overlooking lotsa islands...:tongue:

 

Virtually the same thing, but a bigger country.:yes:

 

And I don't pay any taxes, except purchase tax.

 

Cheers, Bobj.

[colinmaclec]

Bit of a non story that seeing as we already pay 37% of every dollar we earn over $80000?? I am pretty sure By 2039-40 the tax allowances will have increased!

[Danny842003]

Surely there is no way you can predict what tax bracket you will be paying in to in 15 years.