A group of independent Teal MPs is calling on the federal government to index income tax thresholds to inflation. Tax reform is likely to be a major issue for the Teals in the event of a hung parliament.
The tax reform plan would see all income tax brackets indexed either to inflation or a flat 2.5% every year, the mid-range of the Reserve Bank’s target inflation rate.
The group of eight MPs is led by Allegra Spender, who claims the major parties’ spending promises are being funded to a large extent by bracket creep.
