this post was submitted on 02 Mar 2026
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I guess you could argue that that's the reasoning behind the progressive tax regime. Australia's progressive tax lines up with the low end of that but if you were going to claim that the tax free threshold was to cover general living expenses then it's going to need to be a lot larger, 20k bere is not enough to cover rent, food and utilities here, a 3x2 near Perth is like $800/week for rent and I would argue interest on a mortgage is comparable and Perth is on the cheap end of Australian cities. That's like 40k without utilities and food. So either the tax free threshold was poorly implemented without indexation against inflation and cost of living or the driver of it isn't to cover basic cost of living and is more to ease the burden on the poor end of town. I guess you could say it's a little bit of both but arguably indexation should be implemented.