For the current financial year, personal income tax revenue has surged by nearly 12%, amounting to $33.2 billion, largely fueled by strong wage growth and a declining unemployment rate.

The increase in tax revenue coincides with a low unemployment rate of 4.1% and an annual wage growth of 3.5%.

As a result, everyday Australians are increasingly bearing the tax burden, with individual tax revenue now representing a larger share of the national tax bill, according to the Australian Bureau of Statistics.

In contrast, corporate income taxes have seen a decline of 6.9%, or $10.7 billion, primarily due to falling mining profits amid decreasing commodity prices.

Additionally, revenue from the excise on crude oil rose by 15.8%, or $3.4 billion, while GST revenue increased modestly by 2.8%, or $2.4 billion, driven by rising retail prices and sales volumes.

With the federal election approaching on May 3, both major political parties are proposing minor tax reforms to attract voter support.

The Albanese government has announced plans to introduce a $1,000 instant tax deduction by 2026-2027, alongside modest weekly tax cuts, estimating an average annual tax relief of $205 for eligible Australians.

Meanwhile, the Coalition has promised up to $1,200 in one-off tax relief for individuals earning up to $144,000 when they file their tax returns this year.

Labor's proposed tax relief could particularly benefit individuals earning between $45,001 and $135,000, with potential savings of up to $320, while a typical full-time earner at $103,000 could see a reduction of $2,790.

However, economic experts like BDO's Anders Magnusson warn that rising income taxes may disincentivize innovation and productivity, calling for broader tax reforms, including adjustments to GST and personal income tax brackets.

Critics, including AMP chief economist Dr. Shane Oliver, have expressed concern that both parties are prioritizing political popularity over addressing the national debt and structural economic issues.

Overall, tax revenue as a proportion of GDP has reached a notable high of 30%, reflecting contributions from all levels of government.