W ould the original Personal Income Tax Plan have compensated for bracket creep since 2017-18? 5.1 Average tax rates since 2017-18 This section places the (original) third Stage The figure shows how the introduction of of the PITP legislated in 2019 in the context the LMITO in 2018-19 pushed the ATR paid of the broader plan and the accumulation by the median wage earner down from 19.6 11 of bracke. [...] This first half of the 2013-14 financial year, section takes 2010-11 as the benchmark there was no tax relief for the next three tax system in order to place the magnitude years pushing ATRs up prior to the Turnbull of the Stage 3 tax cuts in the context of government’s 2016-17 ‘bracket creep’ the bracket creep paid by higher income tax cuts.22 The ATRs resulting from these earners since the last. [...] More specifically, the curve Presenting the cumulative impact of labelled 2017-18 presents the cumulative tax policy as annual averages enables a impact of bracket creep on tax paid since comparison of the cumulative impact of tax the beginning of the PITP in Figure 6, policy, measured against two alternative tax divided by the seven years following the benchmarks, that accounts for the different. [...] The modelling Figure 14 suggest the abolition of the Stage compares the tax revenue reductions 3 tax cuts would see total tax revenue44 arising from the Stage 3 tax cuts to the climb from $300.5 billion in 2024-25 to tax policy in place in the year prior to the $399.2 billion by 2032-33 (black line). [...] 9.2 More plausible estimates of total income tax revenue foregone as a result of the original Stage 3 tax cuts The 2022 PBO costing used by the Greens 34 at $323.6 billion over ten years.48 The to argue that the Stage 3 tax cuts ‘cost a total revenue increase from the abolition fortune’ put the total (nominal) reduction in of the Stage 3 tax cuts implied by the revenue arising from the Stage 3 tax.
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