Economy
Tasmanian household income will suffer most from Federal Budget measures
*Pic: Leunig, with permission http://www.leunig.com.au/
Measures contained in the 13 May Federal Budget will hit the finances of Tasmanian households disproportionately, the Tasmanian Council of Social Service said today.
The independent National Centre for Social and Economic Modelling at the University of Canberra has found that by the end of the Budget cycle, average household disposable incomes will be 0.77 per cent lower in Tasmania – an average of $418 a year per household– as a result of Federal Budget measures.
“Tasmania will take the biggest hit on average household disposable income because this state has proportionally more people on low and middle incomes,” TasCOSS chief executive Tony Reidy said today.
“The NATSEM modelling (above) gives the cold hard figures on what Budget measures such as new restrictions on access to welfare will mean for many Tasmanians,” Mr Reidy said.
The NATSEM modelling takes account of all the measures in the Federal Budget including the repeal of the carbon tax, the increase in fuel excise and changes to tax and welfare.
The modelling found that Australian households in the bottom income bracket would lose about $1056 a year, while the top 20 per cent of income earners would lose only $682 per household a year.
The middle 20 per cent of households, on incomes of $45,000 to $63,000, would lose $2315 a year.
“An ANU School of Public Policy analysis reinforces that the Budget ‘heavy lifting’ is largely falling on those who can least afford it,” Tony Reidy said.
“The analysis found that an unemployed 23-year-old stands to lose 18 per cent of their disposable income and an unemployed sole parent with an eight-year-old child would lose 12 per cent. By contrast, a high-income couple could have a combined income of up to $360,000 a year and not lose a cent,” Mr Reidy said.
“TasCOSS and the community service organisations we represent fear for those Tasmanians who will be denied access to income support or have their Centrelink payments reduced as a result of Federal Budget measures,” Tony Reidy said.
“We are also very concerned about the impact of new and increased co-payments for GP consultations, medical tests and prescriptions on the health of low-income Tasmanians,” Mr Reidy said.
“We can see from the NATSEM figures that Tasmania is going to be the hardest hit of all the states and we will be lobbying our federal politicians to vote against the parts of the Budget that will hurt the most vulnerable in our community,” Mr Reidy said.
TasCOSS is the peak body for the Tasmanian community services sector.
• davies, in Comments: -0.77%!!!! My god how cruel is this Government!!! I think it just reinforces the fact that there a bunch of sooks out there.
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