Ahead of the 2028 federal election, tax policy is under the spotlight in Australia.Treasurer Jim Chalmers has hinted at possible tax cuts for wage earners, while Opposition Leader Angus Taylor has promised to address 'bracket creep' by linking tax brackets to inflation.Recently, NSW Premier Chris Minns suggested that some Australians work half their week just to pay income tax, citing the top marginal rate of 47%.However, the latest OECD data for 2025 shows that this claim is misleading.Most Australian households pay less tax than the OECD average, once government benefits like family tax payments are considered.Even high-income earners do not pay 47% of their entire salary; the top marginal rate only applies to income above $190,000.For example, Premier Minns’s salary would attract an effective tax rate of 37.27%, not 47%.

The report highlights that while dual-income couples with children might pay slightly higher rates, Australia’s progressive tax system ensures lower and middle-income earners benefit from offsets and benefits.

Overall, the notion that Australians work half the week purely for taxes is exaggerated and does not reflect the actual distribution of tax burdens across households.