‘Hidden hit’ in Abbott Government’s ‘fair’ budget: poorer to be worse off

AS THE Abbott Government enjoys a bump in the polls for its self-styled ‘fairness’, new modelling suggests we may have been misled.

Abbott

IT has been labelled the Budget’s “hidden hit”.

As the Abbott Government enjoys a bump in the polls for its self-styled “fairness” approach, new economic modelling suggests Australia’s poorest families and those with children will actually be hit hardest if Budget measures pass parliament unamended.

The Labor opposition commissioned the National Centre for Social and Economic Modelling (NATSEM) analysis which reveals the poorest families would lose about seven per cent of their disposable income.

Families with children will lose more than $6000 a year by 2018-19, according to the figures. The poorest 20 per cent of households with kids (those earning up to $47,000) will lose up to 7.1 per cent of their disposable income, while families in the top 20 per cent of income earners will be 0.2 per cent better off by 2018-19.

Opposition Leader Bill Shorten described it as the Government’s “hidden hit”.

“This proves that despite the spin job, families who can least afford it are being hurt the most by this Budget,” he said.

“It’s proof that (Prime Minister) Tony Abbott’s promise not to hurt families was only ever a desperate lie to save his own job.

“Tony Abbott promised to make things better, but for Australian families he just keeps making things worse.”

Labor’s social services spokeswoman Jenny Macklin told ABC radio on Monday the only way to protect families was for the Senate to reject changes to family tax benefits.

It was revealed Treasurer Joe Hockey had ordered Cabinet ministers to find “plan B” Budget savings measures in preparation for a Senate roadblock, including challenging Health Minister Sussan Ley to shave $1.3 billion from her portfolio.

The Budget is expected to make about $18 billion in savings over the next four years.

Research by the Australian Council on Social Service released on the weekend found the Budget would take $15 billion from services including family welfare, child dental and community health programs, the Adelaide Advertiser reports.

“While this Budget cemented the damaging cuts that will harm people on the lowest incomes, it took little action to strengthen public revenue,” ACOSS chief executive Cassandra Goldie said.

“(That) tips the scale to the negative side of the fairness ledger as it effectively means that the most disadvantaged and struggling individuals and families in our community are being asked to shoulder the responsibility for restoring the Budget.”

Originally published as ‘Hidden hit’ in Abbott Government’s ‘fair’ budget: poorer to be worse off