Queensland Premier David Crisafulli has joined growing criticism of the federal budget, accusing the Albanese government of being “addicted to tax” as backlash mounts over changes to capital gains tax, trusts and bracket creep.
Crisafulli backed New South Wales Premier Chris Minns, who earlier broke ranks with federal Labor to criticise rising tax burdens and endorse calls to curb bracket creep.
“I think there’s an addiction out of Canberra for tax,” Crisafulli told reporters.
“I think people have seen that over a long period of time, and it has to change.”
The Queensland premier announced his state government would not introduce new taxes in next month’s state budget, drawing a contrast with Canberra.
“We’re not going to find new ways to tax individuals, I can promise you that,” he said.
“I’m not telling the federal government how to run their budget, but you’ll see a contrast in the way that we run ours.”
Crisafulli also questioned the long-term impact of the federal government’s tax changes on investment decisions.
“The big issue where I really get concerned with tax ... despite the way it’s dressed up, there is a retrospective argument where people have made decisions, and long-term, the government will clip the ticket on it at some stage,” he said.
The comments add to pressure on Prime Minister Anthony Albanese and Treasurer Jim Chalmers following budget measures targeting capital gains tax concessions, discretionary trusts and negative gearing.
Minns earlier warned bracket creep was eroding wage gains for workers, saying Australians on the top marginal tax rate were effectively working “Wednesday, Thursday, and Friday for the government.”
Opposition Leader Angus Taylor has pledged to index tax brackets to inflation if elected, arguing the move would ease pressure on households and offset bracket creep.
The pushback comes after Treasurer Jim Chalmers unveiled major tax hikes to family trusts, capital gains tax (CGT) and negative gearing, breaking a prior election commitment not to alter the settings.
Under the tax hikes, the 50% CGT discount for assets held longer than a year will be replaced by an indexation model from July 2027. Investors would instead pay tax on gains at their marginal income tax rate, up to 47%, with a 30% floor.
The budget also targets discretionary trusts, commonly used by small businesses, tradies and investors.
From July 2028, income generated within such trusts will be taxed at 30% before distribution, with a non-refundable credit applied to beneficiaries.
