Why You Feel Poorer Despite Getting a Pay Rise | The Bracket Creep Problem

Every pay rise feels smaller than it should. That's because when your income goes up but the tax brackets don't move, you quietly pay more tax at higher rates. It's called bracket creep, and it's why your pay never quite catches up. Today we run through what your pay rise is really worth after tax, and the one change every other developed country makes that Australia doesn't.

On this episode, we discuss:

(00:00) Intro
(00:49) The Viral Max Harris Bracket Creep Clip
(02:24) Why Australia Won't Index Its Tax Brackets
(03:14) How the Government Profits From Bracket Creep
(04:30) The Minimum Wage Win Chalmers Is Selling
(05:51) Why Wages Aren't Keeping Up With Prices
(06:49) The $3,100 a Year You're Falling Behind
(07:59) What a Pay Rise Really Leaves You
(09:29) What a $190K Earner Really Loses
(11:11) A $190K Family Living Week to Week
(13:29) Why the Government Is Your Biggest Expense
(15:34) Personal Tax Hits 54% of Revenue
(16:47) The Fix: Lower Income Tax, Higher GST
(17:26) The Payroll Tax Killing Small Business Hiring
(18:12) Why We Need to Index Tax Brackets
(21:03) Why Young Australians Get Hit Hardest

Check out the free resources from Inovayt here.

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The Numbers Game is brought to you by Future Advisory & Inovayt.

Hosts:
Nick Reilly
Jason Robinson

This podcast is produced by VIDPOD.

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