A Fairer Path Forward: Why Australia Needs Real Tax Reform to Secure Our Future

OP-ED by Federal Member For Dawson Andrew Willcox

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Every Australian family sitting around the kitchen table knows the reality, our standard of living is under severe pressure. Since the Albanese Labor government took office, Australians have experienced some of the steepest declines in living standards in the developed world. With national debt fast approaching $1 trillion and structural budget deficits locked in for a decade, Labor is spending more and taxing more, while households are forced to get by with less.

The challenge facing our nation is not just identifying these economic headwinds; it is putting forward a clear, constructive alternative. That’s why I’m often asked, what a Coalition government would do differently to steer the country back on track. The answer lies in structural economic reform that rewards hard work, protects aspiration, and respects the money you earn.

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At the heart of our plan is a landmark policy designed to end secret tax hikes, the Tax Back Guarantee.

Under the current system, when your wages rise to keep pace with inflation, you can easily be pushed into a higher tax bracket. This process, known as "bracket creep," allows the government to collect higher tax revenues every year without ever having to pass a law. It penalises workers for simply trying to keep up with the rising cost of groceries, rent, and power bills.

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It equally penalises businesses, too. Employers feel a genuine responsibility to increase wages so their workers can afford to live, yet these rising expenses drive up business overheads at a time when everyone is struggling to swim against a tide of high inflation fuelled by the Albanese Labor Government.

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The Coalition will fix this by permanently indexing income tax thresholds to inflation. Starting in the 2028-29 financial year, we will index the bottom two income tax thresholds, a measure that will protect approximately 85 per cent of Australian income earners.

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By year three, that relief would climb to $1,200 a year: providing a substantial, ongoing boost to household budgets when families need it most. From the 2031-32 financial year, we will extend this indexation to the top two thresholds, ensuring that no Australian is penalised with higher taxes simply because of inflation.

This is a fair, simple, and honest reform. It forces the government to live within its means rather than relying on inflation to balance the budget.

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True economic recovery also requires us to scrap this new suite of toxic taxes that punish success and stifle investment. The Albanese Labor Government's approach is a direct assault on aspiration. It imposes higher taxes on housing, savings, investments, and small businesses.

This includes a 30 per cent tax rate on discretionary trusts, which acts as an inheritance tax by stealth on the family structures everyday Australians use to pass assets to their children.

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This is why a Coalition government will repeal this entire suite of toxic taxes. We will reverse changes to negative gearing that restrict housing supply, undo capital gains tax hikes that discourage investment, and protect small businesses from punitive tax structures.

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Furthermore, we will abolish the Safeguard Mechanism, removing a regulatory burden that inflates building material costs and drives local manufacturing offshore.

It is a basic economic reality that when you tax something, you get less of it.

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If you tax savings, housing, investment, and small business, you get less of all of them. The Coalition wants more aspiration, not less, which is why we will back the hard-working Australians who want to get ahead.

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By cutting these penalties on success, we are offering a positive, practical plan to restore home ownership, lower national debt, and secure Australia's economic future.

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