The Australian’s Adam Creighton says wages catching up to the inflation rate will end up being a “massive” tax increase for the federal government to utilise.
“The tax brackets in Australia are fixed in nominal terms, and if wages catch up to the rate of inflation – that’s going to be a massive tax increase for the federal government,” Mr Creighton told Sky News host Sharri Markson.
“They’re still talking about maybe not going through with the so-called stage three tax cuts which is a complete joke in my view.
“If wages go up by, say, eight per cent in the next couple of years, that’s probably going to be the biggest income tax increase maybe since the second world war.”
