Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Hansard source

I think all governments recognise bracket creep is an issue. That's why governments of both major parties return bracket creep when it's affordable and sustainable to do so. You'll notice that, in the reforms to the tax proposal that was outlined by the former government, this does that by lowering the two thresholds and dropping the two tax rates; sorry, I'm getting back into tax land! That's how we're dealing with bracket creep. It provides relief, and 84 per cent of taxpayers will be getting a bigger income tax cut than they would have under the former government and paying less tax. By 2034-35, someone earning an average income will pay $21,635 less tax than they otherwise would have without these tax cuts.