The Howard Government decision in 2001 to cut indexation has cost the budget more than $46 billion in tax revenue to date. If no change is made the total cost to the budget is projected to top $160 billion by 2025.

Additional carbon dioxide emissions attributable to the policy are projected to reach 16 million tonnes by 2025.

A report released today from The Australia Institute also provided a breakdown of impact on lower income Australians.