What is bracket creep Jon?
That s where inflation pushes you up into a higher tax bracket, right? What is inflation now? The CPI in the last year was negative. Inflation was the lowest since 1962. Let s just get the facts on the table. If there was bracket creep in the last year, it was the lowest bracket creep in thirty-seven years. That s why I was amazed when I saw somebody say, oh what about bracket creep? The lowest bracket creep in thirty-seven years, somebody has suddenly decided to talk about bracket creep. FAINE: No, we ve been talking about bracket creep for years. You re the beneficiary of the previous many years of bracket creep, which means the typical Australian wage or salary earner is now being treated as if they re rich by the tax system. TREASURER: No, no, one of the reasons again, let s just come back to the facts. One of the reasons again why this was a surplus that had to be delivered by reducing spending was that there wasn t the bracket creep. Back in the 80s and 90s when you were running
