The Most Regressive Tax In Australia

The Most Regressive Tax In Australia

John Humphreys notes:

Average weekly tobacco taxes paid:

Poorest 20% of Australians = $11
Richest 20% of Australians = $6

This is by far the most regressive tax in Australia, and the only tax where poor people actually pay more than rich people.

Stats from ABS 6537 2009-10, page 20. 

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2 thoughts on “The Most Regressive Tax In Australia

  1. fiona baptie

    I dont wanna put the truth out there…This tax on tobacco is a crime for something that is legally produced! the government is discriminating against tobacco users for their own gain.( raising revenue for the budget blowout).. I have already noticed people living below the poverty line who are struggling, and in the future there will be an epidemic of people who will need health care because of starving themselves to get a smoke for their addiction; that they cant seem to give up! and its a hard choice( giving up) when rich people around hospitals, courts, businesses are forced out in the gutter to have the freedoms of choice… lighting up that cigarette which is legal is making smokers feel like a criminal without a voice….

  2. […] taxes hit the poorest the hardest. That’s just how the most regressive tax in Australia rolls. If you spend $5,000 a year on tobacco, it’s a bigger proportion of your income if you earn […]

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