Taxes in Australia to Rise by $1.2k

June 8, 2016 Taxation in Australia

Taxes in AustraliaCANBERRA – Tax burdens in Australia will rise slowly over the next five years, as the government’s expenditures and deficits increase.

In a new report released on June 7th the Australian non-government organization Centre for Independent Research claimed that the tax burdens of Australians will rise significantly by the year 2020.

It was estimated that the overall tax burdens in real terms of individual taxpayers will rise by 12.7 percent within the next five years.

Additionally, it is forecast that the total tax burden by the end of 2020 will be AUD 29.6 billion, translating to an extra tax burden of AUD 1 228 per person.

Further, the total tax-to-GDP ratio in Australia over the same timeframe is expected to rise by 8 percent, as inflation pushes a greater number of earners into higher tax brackets.

The researchers noted that the government’s current budget deficits will also eventuate as tax increases, and the current levels of deficits are at historic levels.

Photo by: Corey Leopold