NSW Premier Slams Federal Top Tax Rate as a ‘Tough Burden’
SYDNEY NEWSDESK/THURSDAY 21 MAY,2026
In an extraordinary break from party lines, New South Wales Labor Premier Chris Minns has unleashed a stinging critique against the federal government’s income tax policy, warning that bracket creep has turned the top marginal tax rate into a “tough burden” for working families.
Speaking at a press conference following the recent federal budget, Premier Minns signaled unusual alignment with the federal Opposition’s economic proposals, arguing that a failure to adjust tax thresholds is actively eroding the wage gains won by essential workers.
‘Working for the Government’
Minns targeted the 47% top marginal tax rate—which currently applies to earnings over $190,000—using a stark analogy to describe its impact on high-earning households.
“The top marginal rate of 47 per cent… you’re working Monday, Tuesday, and half of Wednesday for yourself, and then Wednesday, Thursday, and Friday for the government,” Minns said.
While tax experts quickly noted that Australia’s progressive tax system means the 47% rate is only levied on income above the $190,000 threshold rather than total earnings, Minns insisted the psychological and financial toll on families is real. He argued that after securing major state wage agreements for nurses, paramedics, and teachers, inflation and subsequent wage growth are pushing more households into tax brackets never intended for them.
A Fracture in Labor Ranks
The Premier’s comments expose a rare public rift between the NSW state Labor team and Prime Minister Anthony Albanese’s federal government.
The federal budget, delivered by Treasurer Jim Chalmers, focused heavily on hitting wealth structures—winding back the 50% capital gains tax (CGT) discount in favor of an indexation model and targeting discretionary family trusts with a flat 30% tax rate. However, it stopped short of structural changes to personal income tax brackets.
Minns argued that these property and wealth tax hikes should have been paired with comprehensive income tax relief.
“We do need to make sure we’re taking urgent action when it comes to personal income taxes, because at the moment, a lot of working families are getting stung,” Minns said.
NSW Treasurer Daniel Mookhey later backed his leader, stating he supported “any federal tax change” that helps people who earn their livelihood strictly through labor.
Endorsing the Opposition Plan?
In a move that has blindsided federal Labor strategists, Minns signaled open-mindedness toward Coalition Opposition Leader Angus Taylor’s proposal to formally index tax brackets to inflation starting in 2028–29. The Opposition claims indexation would save the average taxpayer $250 in its first year and up to $1,000 annually over time.
Federal Treasurer Jim Chalmers has previously rejected the plan, warning that indexing brackets at the wrong moment could inject cash back into the economy and worsen sticky inflation.
With the cost of living remaining the dominant battleground in Australian politics, Minns’ public defection ensures that bracket creep will remain a headache for the federal government as workers demand to keep more of what they earn.
