Why did the Australian tax take reach a record high in 2024-25?

The average tax burden per Australian rose to a record $30,633 due to a surge in total tax revenue, which hit $839 billion. This was primarily driven by higher collections from personal income tax and GST.

What is driving the record increase in Australian government spending?

Total government expenses grew by 7.4 per cent last financial year, outstripping the 4.5% growth in revenue. The primary drivers are "in-kind" social benefits and employee expenses, specifically record spending on aged care and disability support.

How does the National Disability Insurance Scheme (NDIS) impact the federal budget?

The NDIS is currently the largest pressure point on government savings, with costs forecast to rise from $52 billion this year to $62 billion by 2028-29.

What does the rise in Australian public sector debt mean for the economy?

Total public sector debt jumped by $112.2 billion in 2024-25, a significant increase from the $86.7 billion borrowed the previous year.

What is bracket creep and how does it affect Australian taxpayers?

Bracket creep occurs when inflation and wage growth push workers into higher tax brackets, increasing the government's take without an explicit tax hike.

How does Australia’s tax system compare to other OECD nations?

Australia’s tax system is heavily weighted toward personal income tax, which accounts for 62% of total collections compared to the OECD average of 35%.

What are the main "bear" and "bull" points for the Australian macro outlook?

The "bear" case centres on structural deficits driven by non-discretionary spending on the NDIS and aged care, alongside rising public debt. The "bull" case relies on successful government "calibration" in the May 12 budget to rein in spending growth to 3% and reform the tax base.

What should investors watch for in the May 12 Federal Budget?

Investors should monitor specific legislative targets to cap NDIS growth at 5 per cent and any moves toward further personal income tax bracket indexing. Key signals of fiscal health will include whether the government can successfully reduce spending toward the 25% of GDP target recommended by economists.

Image for illustrative purposes only. Not a real photo.

Aussie tax take hits record high amid NDIS surge

Written by Liezl GambePublished Apr 21, 2026, 10:00 PM

The Australian government has hit a new fiscal milestone as the average tax take per citizen reached a record $30,633 for the 2024-25 financial year.

Data from the Australian Bureau of Statistics reveals that total tax revenue climbed to $839 billion, driven largely by personal income tax and GST collections.

The influx of revenue was outpaced by a 7.4% rise in government expenses, primarily fuelled by record spending on aged care and disability support.

While the growth in disability benefits—including the NDIS—moderated slightly to 9.4%, the total cost for these services has reached an unprecedented $87.3 billion, prompting urgent calls for fiscal reform.

With total public sector debt jumping by $112.2 billion, Treasurer Jim Chalmers has signalled that the upcoming May 12 budget will focus on "resilience and reform".

The Treasurer described the NDIS as growing "too fast for Australians to afford", earmarking it as a primary target for government savings.