Guide to Giving
MEDIA, JOBS & RESOURCES FOR THE COMMON GOOD
Budget  |  2016 Budget, Politics

Budget Hits Australia’s Poorest Families Hardest, ANU Report Reveals


Thursday, 12th May 2016 at 11:53 am
Wendy Williams, Journalist
Australia’s poorest families will be hardest hit by the federal budget when the new measures come into place, a new report from the Australian National University has revealed.

Thursday, 12th May 2016
at 11:53 am
Wendy Williams, Journalist


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Budget Hits Australia’s Poorest Families Hardest, ANU Report Reveals
Thursday, 12th May 2016 at 11:53 am

Australia’s poorest families will be hardest hit by the federal budget when the new measures come into place, a new report from the Australian National University has revealed.

The report, which looked at the “hip-pocket” measures expected to have an immediate impact on household budgets in the year 2018/19, showed there was a clear relationship between the impact of these measures and income levels.

In particular the report said families who fall in the bottom 20 per cent of income distribution will most feel the effects of changes to family payments, childcare, taxation, tobacco excise and superannuation.

According to the report, single parent families in the bottom 20 per cent are expected to be worse off by an average $1,209 in 2018/19, which represents a 3.7 per cent reduction in their disposable income.

Meanwhile couples with children in the bottom 20 per cent will be worse off by $1,429 or 2.8 per cent.

The major financial impact for these families comes as a result of the removal of the family tax benefit part A and part B supplements which amount to around $480 per year net of FTB maximum rate increases per child and around $368 per year reduction in FTB B supplements per family.

Some single parent families will also lose around $1,728 in 2018/19 from a lower FTB part B payment.

On average, these families will also be heavily impacted by the increase in the tobacco excise with an average impact of -$173 and -0.5 per cent for the bottom income category and just -0.1 per cent for the top 20 per cent.

In contrast, at the other end of the scale, the report said the top 20 per cent of families will be ahead financially by around $211 per year thanks in the main to personal income taxation cuts with a higher second top threshold.

Overall the Distributional Modelling of Federal Budget 2016-17 authored by Ben Phillips, associate professor at ANU Centre for Social Research and Methods, said the budget had a “regressive impact”.

“The losses for the middle and top income groups are proportionately much less than low income families,” the report said.

“Superannuation changes do assist in providing a more progressive budget impact.

“The top 20 per cent wears a $645 burden while the bottom 20 per cent gains $34 each year on average from the selected changes that were modelled for 2018/19.

“The superannuation changes while significant are not enough to alter the conclusion that this budget has a regressive impact.”


Wendy Williams  |  Journalist |  @ProBonoNews

Wendy Williams is a journalist specialising in the Not for Profit sector.

Guide to Giving

FEATURED SUPPLIERS


Helping the helpers fund their mission…...

FrontStream Pty Ltd (FrontStream AsiaPacific)

...


Yes we’re lawyers, but we do a lot more....

Moores

NGO Recruitment is Australia’s not-for-profit sector recru...

NGO Recruitment

More Suppliers

Get more stories like this

FREE SOCIAL
SECTOR NEWS

YOU MAY ALSO LIKE

Mental Health Groups Call for Same-Sex Marriage to Prevent Suicide

Luke Michael

Thursday, 21st September 2017 at 4:24 pm

Public Interest / Private Interest – A Fundamental Distinction

David Crosbie

Thursday, 14th September 2017 at 8:46 am

Boosting Philanthropy For A Stronger Australia

Wendy Williams

Monday, 11th September 2017 at 5:16 pm

POPULAR

Moves to Stop Volunteering at Overseas Orphanages

Luke Michael

Wednesday, 13th September 2017 at 1:54 pm

Future Uncertain for Disability Organisations Following Funding Cuts

Wendy Williams

Tuesday, 19th September 2017 at 8:29 am

Majority of NFPs Are Not Believed to be Well-Run, According to New Survey

Luke Michael

Tuesday, 12th September 2017 at 4:14 pm

More Australians Are Giving Time Not Money

Wendy Williams

Monday, 11th September 2017 at 5:07 pm

Write a Reply or Comment

Your email address will not be published. Required fields are marked *


Guide to Giving
pba inverse logo
Subscribe Twitter Facebook

The social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!