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. Send us an email: hello@thenumbersgamepodcast.com.au The Numbers Game is brought to you by Future Advisory & Inovayt. Hosts:Nick ReillyJason Robinson This podcast is produced by VIDPOD. Check out our new website thenumbersgamepodcast.com.au. Browse the full show catalogue, jump straight to specific moments on the topics you love, or leave us a voice note. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.