From switzer.com.au: Treasurer Jim Chalmers has the opportunity to address the issue of bracket creep by implementing tax indexation, which would prevent inflation from pushing taxpayers into higher tax brackets.

Currently, without indexation, an average full-time worker earning $135,000 could face a tax increase to 37% by 2031 due to inflation.

However, introducing such measures could reduce the government’s budget surplus obtained from bracket creep, making it a challenging political decision leading up to the next election.