Lowest paid lose out to tax creep

Original article by David Marin-Guzman
The Australian Financial Review – Page: 1 & 6 : 16-May-18

The Australian Industry Group argues that many low-income workers would not benefit from the ACTU’s proposed 7.2 per cent increase in the minimum wage. Due to "bracket creep", a 2.1 per cent increase in the minimum wage would result in such workers being taxed at 32.5 per cent rather than 19 per cent. AiGroup says the Fair Work Commission should take into account the fact that employers would face increased costs under the ACTU’s proposal while there would be little gain for many workers. The AiGroup has called for a 1.8 per cent increase in the minimum wage.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, ACTU, AUSTRALIA. FAIR WORK COMMISSION, GRATTAN INSTITUTE

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