The Australian Chamber of Commerce and Industry is urging the government to eliminate the phenomenon of bracket creep, as wage inflation forces increasing numbers of Australians into the top tax bracket.
Citing a recent study conducted by the Melbourne Institute of Applied Economic and Social Research, the ACCI revealed that the government will collect $3.8 billion more in income tax by 2005-06 than it would have had all thresholds been indexed for inflation since 2000-01.
The ACCI is urging the government to eliminate bracket creep as part of a ‘five point’ plan of income tax reform, which also calls for a reduction in the number of income tax brackets, an increase in the top income tax threshold to $75,000, and a reduction in the top rate of tax to 40% from the current 42%.
In addition, the ACCI wants to see the top rate of personal tax aligned with the company rate, and the restoration of the 15% tax rebate on savings.
“Australia’s income tax regime is too punitive by international standards and reduces the incentive to work and accumulate capital,” stated the ACCI.
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment