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Tax Freedom Day

Tax Freedom Day has fallen on April 16 for 2018.

This marks the day at which Australians have paid off their annually allotted tax burden and begin working for their own benefit.

It took Australians 106 days to reach the milestone this year, 5 days extra then two years ago.

Robert Carling from the Centre for Independent Studies says this has to do with a recent hike in government spending.

“Ultimately it is expenditure. This is the basic driver of the tax burden,” he says.

“It is driving Tax Freedom Day to be later and later.”

With 28.7% of total generated income going to the government in tax, many are questioning why substantial deficits have become an almost constant presence in our political landscape.

Dr Carling points to new long term reform entitlements like the National Disability Insurance Scheme, Gonski 2.0 and the latest childcare reforms to explain the lack of surplus.

“Another one is health costs. That’s always bubbling along in the background there, consistently growing quite fast.”

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