Younger, Poorer Aussies Asked to Fund the Nation: My Take
A new report from the Parliamentary Budget Office has sent a clear message: Australia’s reliance on personal income tax is only set to grow. Forecasts suggest the government’s tax take will soar by 90 per cent over the next decade, from $357.8 billion today to $682 billion by 2035.
For younger, poorer Australians, this is not just a number. It’s a responsibility, a weight, and perhaps even a warning.
The Negative Side: Why This Hurts the Next Generation
The most obvious concern is fairness. Bracket creep, rising wages, and limited government relief mean that those who are just starting out—the younger workers—will shoulder a disproportionate share of the burden.
Generational imbalance: As older Australians move into retirement, the younger workforce will be expected to fund more of the nation’s needs.
Reduced disposable income: With higher tax rates, young Australians may find it harder to save, invest, or even buy their first homes.
Weaker incentives: As taxes rise, ambition can be stifled. Workers may feel they are simply toiling to keep the system afloat, not to build their own futures.
This is the risk of over-relying on personal income tax: it leaves too little room for growth, fairness, and incentive.
The Positive Side: Why It’s Not All Bad News
Yet there’s another way to view this. Taxes, though often seen as a burden, are also the price we pay for living in a society that supports its people.
A sign of resilience: Rising wages—even if partly eaten up by tax—suggest that Australians are still working, earning, and contributing.
Funding public services: Income tax helps sustain the very infrastructure, healthcare, and education systems that young people will depend on in the decades to come.
Pressure for reform: If the imbalance becomes too great, it could push policymakers to rethink the system, sparking long-overdue reform.
In this sense, what feels like a crisis could also be the catalyst for a better, more balanced tax structure.
My Reflection: A Crossroads for Young Australians
I understand why this report feels daunting—especially for those just starting out in their careers. The thought of carrying an even heavier financial load while trying to secure housing, manage cost of living, and build a family can feel overwhelming.
But I also believe in the resilience of younger Australians. Yes, they may be asked to carry more. Yet in doing so, they also gain a louder voice in shaping the policies of tomorrow. If enough people push for fairness, reform becomes not just possible, but inevitable.
The tax burden is real. The challenge is undeniable. But perhaps in this moment of imbalance, we’ll find an opportunity to create a system that is not just sustainable, but equitable—for every generation.
