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Hidden cost in Swan's Budget to hurt families in years ahead

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There are a few things in Wayne Swan's sixth federal Budget handed down last night that families will not be happy about.

The baby bonus is disappearing – although replaced by a change in the family tax benefit A – and there's also an increase to the Medicare levy which will put more pressure on the family budget.

But there is another hidden cost inside this Budget that families won't appreciate, and they will start picking it up in the next couple of days.

In short, the tax take from their income taxes to help drive the Budget back to surplus in four years' time is coming from their back pockets.

Right now there's an absence of any tax cuts and this will lead to "bracket creep" – as your wages start to increase you'll pop into higher tax brackets.

As bracket creep continues to happen over the coming years, the tax take from your personal taxes is going to rise to its highest level since 2000.

Amid a $60 billion fall in revenue and a drop-off in corporate tax, the federal government is now relying on a very rapid increase in personal taxes to prop up its bottom line.

As for the $18 billion deficit announced for the year ahead, Australia can afford its debts – it can afford to be in deficit.

But what we don't want is for those deficits to continue into the longer term.

What we need is a plan to get back into surplus at some stage in the future and to take pressure off households.

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