Quantitative peopling saves federal budget

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Earlier this year, The SMH published the following chart derived from Treasury data, illustrating the drivers behind the rise in income tax receipts in recent years:

Bracket Creep

The purple bars above indicate that the “growth in the tax filer population” is a significant factor contributing to the increase in personal income taxes.

This is a code for net overseas migration, as new migrants make up the vast majority of new entrants to the labour market.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.