Opposition Calls for Cut to Top Tax Rate Below 40 Percent, Migration Cut to 180,000

Liberal Senator Andrew Bragg has proposed lowering the top tax rates to below 40 percent and cutting net overseas migration to 180,000 a year in a bid to bolster the economy and address the housing crisis.Speaking to the National Press Club on Aug. 12, Bragg said the existing tax system was punitive and needed to be “reigned in and flattened out.”“The top tax rates for individuals are too high and should have a three in front of them, just as the taxes on small businesses are too high,” he said.“We need to get to a much flatter income tax system for people and all businesses. Otherwise, we can forget about generating the next Afterpay or Canva.”Australia’s top tax bracket is currently 45 percent, plus a 2 percent Medicare levy, for taxable income above $190,000 (US$134,000).Bragg also promised a Coalition government would get rid of the Labor’s “ugly” 30 percent minimum tax rate on all capital gains outlined in the 2026-27 budget.“Without lower taxes, we will just be a host nation for data centres because the 30 percent ambition tax totally undermines our status as a developer of new businesses,” he said.“That’s why we will abolish the ugly 30 percent minimum tax rate which entrenches the OECD’s highest effective personal and capital gains tax system.”Cutting Migration to Close Housing Shortfall: Bragg On migration, Bragg highlighted that keeping net overseas migration (NOM) below an average of 180,000 a year could address the current housing shortfall.Linking high migration to the housing crisis, he said Australia’s population has grown by some 1.8 million since Labor took office in mid-2022, with 1.5 million of that increase coming from net overseas migration.However, housing stock has risen by “only 550,000” during the period.“Applying the Census assumption of 2.6 persons per dwelling, under Labor, Australia has only built enough dwellings for about 1.5 million persons,” he said.“This has created a shortfall of some 130,000 dwellings, which are needed to house at least 350,000 persons.”According to the budget, that net overseas migration is projected to fall from 295,000 in 2025-26 to 225,000 in 2029-30.To close this housing shortfall, Bragg suggested that net overseas migration needed to average below 180,000 a year.“Assuming Labor sticks to this budget profile, it means the specific shortfall relating to housing created under Labor can be closed over the budget forward estimates period by averaging a NOM of under 180,000,” he said.“A NOM reduction on this scale is manageable and in line with reductions we have managed in recent history—for example, in 2009-10 when NOM declined from 300,000 to 175,000 in around 18 months.”Bragg said this could be achieved by increasing the skilled share of permanent migration, including more skilled construction tradies, and reducing international students, working holiday makers and post-study work visas.Bragg’s suggestions come after One Nation Leader Pauline Hanson confirmed she wanted permanent migration reduced to about 130,000 a year, with priority given to nurses, doctors and engineers.“I’m not against immigration, but in the middle of the housing crisis why are we bringing in more uber drivers, nail technicians and dog walkers?” she said on Aug. 6.