Over the past 18 months, real net disposable income for an average income earner has fallen, with a decline in take home pay of just under $8,000.
As Labor’s cost of living crisis bites, the pain is primarily being driven by rising mortgage payments, falling real wages, and increasing taxes.
Federal Member for Groom, Garth Hamilton said Anthony Albanese’s broken promise demonstrated the Labor government was void of any real ideas to tackle the cost of living.
“The Prime Minister’s decision to break a key election promise, abandon stage three tax cuts and engage in class war is simply a distraction from the real issue that workers are struggling with cost of living and they have no solutions.
“Labor’s high inflation, rising interest rates and a record income tax take have driven real incomes to their lowest level in eight years.
“Labor’s tax changes will mean an earner on an average annual wage would receive just $804 more under Labor’s policy – or $15.46 a week.
“This is less than 1% of their annual wage and returns just 10c for every dollar they have lost to cost of living pressures during Labor’s first 18 months in office.
Labor’s broken promise entrenches bracket creep in the income tax system and increases taxes by $28 billion on more than four million Australians.
“This short term, poll driven announcement by the prime minister will see tax increases on more than four million Australians.
“This is a big taxing, big spending government that ignores households while wasting money on a rail line in Melbourne and a failed referendum,” Mr Hamilton said.
Judo Bank chief economics adviser Warren Hogan reported in December 2023, that the national accounts showed a massive increase in household income tax; “… bracket creep has seen a 28 per cent increase [in tax] over the past year, highest since 1977. The Treasury is doing more damage to household disposable incomes than the RBA,” Mr Hogan said.
ENDS.
Media Contact: Greta Dwan 0414 211 908
