The combined impact of the Government’s deficit levy, tax increases and benefit cuts could reach more than $50 billion over the next four years.
This figure was predicted by the National Centre for Social and Economic Modelling at the University of Canberra for The Australian newspaper.
The new deficit levy, which the Prime Minister had not described as a tax as it will be removed once the budget returns to surplus, would be $2.2 billion a year. According to The Australian’s report, other tax increases will add a further $3 billion a year.
The impact of “bracket creep”, when inflation pushes people into higher tax brackets, will reach $15 billion a year by 2017-18 — the same year the Government’s deficit levy is expected to remain in place.
The combined effect (keeping in mind the deficit levy isn’t final, and could be changed) as well as other tax increases, would bring the total burden on individual taxpayers to $51 billion over four years, according to NATSEM and modelling from Deloitte Access Economics cited in the report.
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