Progressive tax: Difference between revisions - Wikipedia

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{{details|Taxation in Australia}}

[[Australia]] has the following progressive income tax brackets (all values are in [[AUD|Australian dollars]]): 0% up to $6000, 15% from $6001 to $25000, 30% from $25001 to $75000, 40% from $75001 to $150000, and 45% tax for any amount over $150000. These taxes are paid throughout Australia.

==== Inflation and tax brackets ====

Many tax laws are not accurately indexed to inflation. Either they ignore inflation completely, or they are indexed to the [[Consumer Price Index]] (CPI), which tends to understate real inflation.<ref>{{cite news| url=http://www.usatoday.com/money/perfi/columnist/waggon/2004-11-25-inflation_x.htm | title=If you think inflation is on the move, time to protect portfolio | last=Waggoner | first=John | publisher=USA Today | date=2004-11-26 | format=HTML | accessdate=2008-02-03}}</ref> In a progressive tax system, failure to index the brackets to inflation will eventually result in effective tax increases (if inflation is sustained), as inflation in wages will increase individual income and move individuals into higher tax brackets with higher percentage rate. One example is the United States [[Alternative Minimum Tax]]; since it is not indexed to inflation,<ref>http://www.taxpolicycenter.org/newsevents/events_amt_facts.cfm</ref><ref>http://www.washingtonpost.com/wp-dyn/articles/A36988-2004Mar6.html</ref> an increasing number of upper-middle-income taxpayers have been finding themselves subject to this tax.

== See also ==