What is Angus Taylor’s proposal to end "bracket creep" in Australia?

Opposition Leader Angus Taylor has pledged to index Australia's tax brackets to inflation to prevent "bracket creep," where inflation pushes taxpayers into higher brackets without an increase in real purchasing power.

When would the proposed tax bracket indexation take effect?

The policy is scheduled to begin in the 2028-29 financial year, which follows the expected date of the next federal election. It would first apply to the lower two income brackets before potentially expanding to all taxpayers by 2031-32.

How does the Coalition plan to link migration to the housing market?

Angus Taylor proposed a hard cap on migration that is directly tied to national housing supply, ensuring the number of new arrivals does not exceed the construction industry's capacity.

What are the key economic arguments for indexing tax brackets?

The primary argument is fiscal transparency; indexation forces governments to justify tax increases at elections rather than benefiting from "inflation-induced" revenue growth. Taylor asserts this will increase household disposable income over the long term and improve work incentives.

What are the potential risks of the Coalition's budget reply policies?

A key risk is the lack of specific migration figures, which Taylor stated would not be provided until closer to the election, creating uncertainty for sectors reliant on overseas labour.

How does the $5 billion infrastructure proposal impact the housing sector?

The Coalition has proposed a $5 billion investment into enabling infrastructure—such as roads, water, and power—to "unlock" an estimated 400,000 new homes. This strategy targets the supply side of the housing crisis by reducing the cost and logistical hurdles for developers to start new projects.

How does Taylor’s tax plan differ from current Labor government policy?

The current Labor policy relies on periodic, legislated tax cuts (such as the recent Stage 3 revisions) to address bracket creep, whereas Taylor’s plan makes adjustments automatic based on inflation.

Taylor pledges tax indexation and lower migration

Written by Liezl GambePublished May. 14 2026Last Updated May. 14 2026

Opposition Leader Angus Taylor has unveiled a "generational" reform package, pledging to index Australia’s tax brackets to inflation and slash migration to address the nation’s housing crisis.

Delivering his first budget reply on May 14, Taylor framed the Coalition’s new economic direction as a necessary intervention against "bracket creep", which he characterised as a "stealth raid" on the earnings of hard-working Australians.

Under the proposed plan, the bottom two tax brackets—covering those earning between $18,201 and $135,000—would be indexed to inflation starting in the 2028-29 financial year.

Taylor argued that this move would force future governments to seek a mandate via elections before increasing the tax burden on citizens, rather than relying on wage growth and inflation to swell Treasury coffers.

Taylor took a hardline stance on population growth, asserting that "mass migration" is "changing Australia for the worse".

He pledged to link the national migration intake directly to housing supply, ensuring that the number of arrivals never exceeds the capacity of the construction industry.

While specific figures remain undefined until closer to the next election, Taylor signalled that intake would initially sit "well below" any cap to allow the property market to stabilise.

The policy shift is bolstered by a $5 billion infrastructure proposal intended to unlock 400,000 new homes by funding essential roads, water, and power.

"This is fair, simple, and honest," Taylor told Parliament, positioning the Coalition as the party of fiscal discipline and structural integrity.