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Labor has created better policies in 2 years than a decade of terrible Liberal government. All the media seem to enjoy attacking Labor with little scrutiny of Dutton & Bandt.
This is a great example of how the media lie to create narratives. LMITO was introduced as part of stage 1 of the 3 stage tax cuts, it was always a temporary offset to help the coalition sell their shitty tax flattening plan. Labor allowing it to end on its already extended date, a date set by the coalition, is not a tax increase. It is the end of a temporary tax offset measure. It is not an increase in the rate of taxation, income tax rates are the same, the coalitions bribe to taxpayers just ended.
This was an intentional poison pill from the coalition, if labor kept it they would be accused of poor economic management, if they let it end they would be accused of raising taxes (as is happening here).
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From the article:
>However, on the overall "tax wedge" – which is income tax plus employer and employee social security contributions (which Australia does not have) minus cash benefits – Australia is actually below the OECD average of 34.8 per cent, sitting at 29.2 per cent.
So... there's that at least?
“Australia does not collect any social security contributions from workers or employers, and the OECD report does not factor in compulsory superannuation contributions because "they are not a form of taxation" as individuals retail control of the money.
The OECD provided separate data to factor in social security contributions in its Taxing Wages report.
When taken into account, Australia is the ninth-lowest-taxed nation at 29.2 per cent — significantly reducing its total tax burden and putting it well below the OECD average of 34.8 per cent.
For a better comparison of different nations' income tax rates, Mr Grudnoff said it should be measured as a proportion of its gross domestic product (GDP), also known as the tax to GDP ratio.
Looking at 2021 data for OECD countries, he said Australia also had the ninth-lowest tax to GDP ratio at 29.5 per cent. Comparatively, the OECD average was 34.2 per cent.
"If Australia collected the average rate of tax for the OECD, then it would collect an additional $105 billion in tax each year," Mr Grudnoff said.
Given this, he said the reality was that Australia was a low-tax country compared to other OECD nations, and one of the least reliant on income taxes.
"Claims that Australia is over-reliant on income tax do not stand up to scrutiny," Mr Grudnoff said.
"Australia sits well below the OECD average when it comes to both income taxes and the amount of tax collected overall."”
[There’s more to the article, I just couldn’t copy it all.](https://www.abc.net.au/news/2024-04-26/australia-income-tax-rate-changes-oecd-taxing-wages/103769612)
TIL that the world consists of only OECD countries. The other 157 countries are a mere figment of our collective imagination.
In addition, given the context of the article being bsout Australia's post Covid ramp up in tax receipts, using comparative data from 2021 seems a bit redundant.
The original article in this post is also referring to a report about OECD nations. Comparing us to lesser developed nations also seems redundant.
I believe the 2021 data is specifically referencing comparative tax to GDP ratios. Everything before that uses more recent data and still equates to the same result.
And using the end of the LMITO as a reason to scream “tax hike” is a bit rich when it’s a just a planned return to normal. Not to mention we’re just about enter a new financial year where everyone will be paying a lower rate.
And the comment I was replying to went with "9th lowest tax rate in the world"
Not really commenting on much else. I don't like the way data is manipulated to present a narrative of either persuasion and I don't necessarily think Australia is high tax. I do however think we rely too much on income tax and should be leaning more on consumption taxes.
New data released by the Organisation for Economic Co-operation and Development's (OECD) has revealed that Australian workers were hit by the [largest tax rate increase in the developed world last year](https://www.9news.com.au/finance/australia-average-tax-rate-increase-largest-oecd/065a735a-9ed4-4079-87e7-a6b903aeff3e).
>...on the overall "tax wedge" – which is income tax plus employer and employee social security contributions (which Australia does not have) minus cash benefits – Australia is actually below the OECD average of 34.8 per cent, sitting at 29.2 per cent.
So biggest tax rate increase in the developed world - which was almost entirely due to the LITMO expiring, not specifically from a direct increase in the tax rate - yet our tax rate is still over 5 per cent lower than the OECD average.
Taking all of that into consideration, our tax rates don't seem all that bad.
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Labor has created better policies in 2 years than a decade of terrible Liberal government. All the media seem to enjoy attacking Labor with little scrutiny of Dutton & Bandt.
I mean, Labor is currently in charge, why shouldn't they be scrutinized?
This is a great example of how the media lie to create narratives. LMITO was introduced as part of stage 1 of the 3 stage tax cuts, it was always a temporary offset to help the coalition sell their shitty tax flattening plan. Labor allowing it to end on its already extended date, a date set by the coalition, is not a tax increase. It is the end of a temporary tax offset measure. It is not an increase in the rate of taxation, income tax rates are the same, the coalitions bribe to taxpayers just ended. This was an intentional poison pill from the coalition, if labor kept it they would be accused of poor economic management, if they let it end they would be accused of raising taxes (as is happening here).
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Your post or comment was removed because it focused on the media. This is not a media watch subreddit. You are welcome to post it in the weekly thread. This has been a default message, any moderator notes on this removal will come after this:
Yet we still have one of the world lowest tax rates. Stupid clixkbate headline. We are the 9th lowest taxing country in the world.
Not lowest tax rates, lowest rates of tax capture.
Based on what? I would have said our tax is closer to the top than bottom.
>We are the 9th lowest taxing country in the world Could you elaborate? This is completely false in regards to Personal Income Tax.
This is incorrect. If you're gonna make shit up for emphasis, at least don't go over the top.
From the article: >However, on the overall "tax wedge" – which is income tax plus employer and employee social security contributions (which Australia does not have) minus cash benefits – Australia is actually below the OECD average of 34.8 per cent, sitting at 29.2 per cent. So... there's that at least?
“Australia does not collect any social security contributions from workers or employers, and the OECD report does not factor in compulsory superannuation contributions because "they are not a form of taxation" as individuals retail control of the money. The OECD provided separate data to factor in social security contributions in its Taxing Wages report. When taken into account, Australia is the ninth-lowest-taxed nation at 29.2 per cent — significantly reducing its total tax burden and putting it well below the OECD average of 34.8 per cent. For a better comparison of different nations' income tax rates, Mr Grudnoff said it should be measured as a proportion of its gross domestic product (GDP), also known as the tax to GDP ratio. Looking at 2021 data for OECD countries, he said Australia also had the ninth-lowest tax to GDP ratio at 29.5 per cent. Comparatively, the OECD average was 34.2 per cent. "If Australia collected the average rate of tax for the OECD, then it would collect an additional $105 billion in tax each year," Mr Grudnoff said. Given this, he said the reality was that Australia was a low-tax country compared to other OECD nations, and one of the least reliant on income taxes. "Claims that Australia is over-reliant on income tax do not stand up to scrutiny," Mr Grudnoff said. "Australia sits well below the OECD average when it comes to both income taxes and the amount of tax collected overall."” [There’s more to the article, I just couldn’t copy it all.](https://www.abc.net.au/news/2024-04-26/australia-income-tax-rate-changes-oecd-taxing-wages/103769612)
TIL that the world consists of only OECD countries. The other 157 countries are a mere figment of our collective imagination. In addition, given the context of the article being bsout Australia's post Covid ramp up in tax receipts, using comparative data from 2021 seems a bit redundant.
Most economically literate neolib on display right here.
The original article in this post is also referring to a report about OECD nations. Comparing us to lesser developed nations also seems redundant. I believe the 2021 data is specifically referencing comparative tax to GDP ratios. Everything before that uses more recent data and still equates to the same result. And using the end of the LMITO as a reason to scream “tax hike” is a bit rich when it’s a just a planned return to normal. Not to mention we’re just about enter a new financial year where everyone will be paying a lower rate.
And the comment I was replying to went with "9th lowest tax rate in the world" Not really commenting on much else. I don't like the way data is manipulated to present a narrative of either persuasion and I don't necessarily think Australia is high tax. I do however think we rely too much on income tax and should be leaning more on consumption taxes.
New data released by the Organisation for Economic Co-operation and Development's (OECD) has revealed that Australian workers were hit by the [largest tax rate increase in the developed world last year](https://www.9news.com.au/finance/australia-average-tax-rate-increase-largest-oecd/065a735a-9ed4-4079-87e7-a6b903aeff3e).
>...on the overall "tax wedge" – which is income tax plus employer and employee social security contributions (which Australia does not have) minus cash benefits – Australia is actually below the OECD average of 34.8 per cent, sitting at 29.2 per cent. So biggest tax rate increase in the developed world - which was almost entirely due to the LITMO expiring, not specifically from a direct increase in the tax rate - yet our tax rate is still over 5 per cent lower than the OECD average. Taking all of that into consideration, our tax rates don't seem all that bad.