Bombshell Report Reveals Government’s Shocking Plan to Slap Aussies with Higher Taxes to Fund Out-of-Control Spending
- Deloitte’s latest Budget Monitor report warns that federal government spending is outstripping tax revenue, threatening to crush already-struggling Aussies with higher taxes.
- The report suggests an inheritance tax, which would unfairly target younger generations who are desperate to get ahead in life.
- The tax revenue grab would disproportionately hurt young people, who are already facing steep challenges in the housing market.
In a chilling forecast, Deloitte’s report has sounded the alarm on the government’s reckless spending habits, warning that Aussies will be forced to fork out even more in taxes to fund their lavish ways. The news comes as a brutal blow to millions of Australians who are already struggling to make ends meet, with the prediction that “Australia will need higher taxes over time to pay for the promises governments have made and intend to keep.”
According to the report, the government has become far too reliant on income tax, with receipts increasing by a staggering 50 per cent from $223 billion in the 2019-20 federal budget to $334.9 billion in 2024-25. This has led to widespread bracket creep, where wages increase but tax brackets don’t move up with them, disproportionately hurting young people who are likely to experience career progression and significant pay rises in the next decade or so.
In a move that will infuriate many, Deloitte has suggested an array of tax hikes, including an inheritance tax, which would slap Aussies with a 10 per cent levy on inheritances exceeding $100,000, excluding the family home. This highly controversial move would raise a paltry $3 billion a year, a mere drop in the ocean compared to the government’s massive revenue losses due to tobacco excise.
But the biggest problem with an inheritance tax is that it would unfairly target younger generations, who are hanging on to that inheritance to have any chance of entering the property market themselves. As one expert warned, “Those who have benefited from the windfall will continue to benefit from the windfall until they die, and then their children and grandchildren will have to hand 10 per cent to the government, thus punishing them even further.”
Deloitte’s argument that an inheritance tax would “repair the budget, help all Australians share in the asset price windfall that has flowed to older generations over the last 40 years, and help to prevent inequality from cascading through future generations” has been rubbished by critics, who believe it would only serve to punish those who are already struggling to get ahead.
In a scathing rebuke, one observer noted, “If they downsize, as the government would like them to do, a larger family can move in, and put the rest of the money in the bank, then my brother and I would likely end up paying inheritance tax on the savings, plus whatever superannuation and other assets they have left.”
It seems the government is determined to squeeze every last dollar out of already-struggling Aussies, with no regard for the devastating impact it will have on their lives. As one outraged citizen fumed, “Who cares? The government needs more money, and younger generations must, again, be the ones to pay for it.”