Release: Report finds government takes over 50% of our gross income
Monday, 26 April 2021
The Liberal Democratic Party, Australia’s only registered libertarian political party, and the Australian Taxpayers’ Alliance, the nation’s largest grassroots advocacy group representing taxpayers today published a report on the total tax burden. The report, entitled “The Cost of Tax”, aggregates the total tax burden for an Australian living in the state of Victoria.
The report finds:
The typical Victorian, earning the state’s 2019 average income of $63,440, costs their employer about $73,200 to hire once superannuation, payroll tax and extra benefits are all added up. Of that gross income, the government collects a whopping 55% – more than $40,000.
Consumption taxes including the GST, customs duties, excise taxes and more cost those earning the least, the most. As a result, individuals in the bottom quintiles lose the same percentage of their income to tax as those in the top quintiles.
Because of GST, the Australian government in many cases charges tax on taxes.
Taxes on superannuation on average reduce retirement income by about 25 per cent.
Australians pay tax three times on every dollar they earn. First they pay tax on earnings, then on their purchases, and lastly on their savings because the government doesn’t take inflation into account when calculating capital gains.
“Australians are stuck paying 125 separate taxes at the local, state and federal levels,” said ATA Policy Director and author of the tax report, Emilie Dye. “With so many sneaky taxes leaching away at our wealth, it's no wonder most Australians don’t know what they truly pay in tax. We are boiled frogs.”
“Victorians lose approximately 45 per cent of their potential take-home earnings to tax.”
“The Australian government wants to have a progressive tax code, but politicians have shot themselves in the foot with so many consumption taxes. Taxes meant to change people’s behaviour too often impoverish our most vulnerable citizens.”
Ms Dye called for tax reform saying, “the Australian people are not a bottomless money pit. With taxes so high we likely don’t even know all the ways we are hurting our economy and reducing people’s well being. While individuals and businesses are struggling to recover after the crisis, now is the perfect time to lessen their burden and cut problematic taxes and costly regulations.”
David Limbrick LDP Member for South Eastern Metropolitan in the Victorian state upper house said, “while we knew the Australian government took too much of the people’s money, the results of this report are shocking. Not only do taxes take over 50 per cent of the most wealthy Australian’s income, they take the same amount from middle class and less fortunate Australians.”
“This report clearly shows that the government has gotten too big and too greedy. Too often we read stories about rorts and government waste. It’s no surprise with just how much money is pouring into the government coffers. Politicians have been given a blank check with so many taxes,” said Mr Limbrick.
Quotes attributed to Emilie Dye, Policy Director for the Australian Taxpayers’ Alliance and David Limbrick, Liberal Democrats Member in the Victorian state upper house.