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Image for 'The Economy, Stupid' with ABC logo. Features a cartoon pink piggy bank against a yellow background.

Program: Is bracket creep saving us from ourselves?

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The opposition leader Angus Taylor has promised to end bracket creep by introducing tax indexation.

But are 'silent' increases in tax a necessary evil, allowing governments to ride out economic storms, and cover the cost of the services we need but may not be willing to pay for?  

Some economists think so. 

Guests: 

Luci Ellis - Chief Economist, Westpac

Matt Nolan - Senior Research Manager, e61 Institute

Referred to:

Bracket creep and its fiscal impact, Parliamentary Budget Office, September 29, 2021

The Impact of Tax Indexation on the Budget and People, Peter Davidson, Tax and Transfer Institute, June 20 2025

Would Tax Indexation Have Made Us Better Off? David Richardson, The Austraia Institute, June 4 2026

Coordinated policy should not be a drag, Luci Ellis, Westpac, December 14, 2023

Tax, Budget
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