The Australia Institute has modelled the distribution of income tax cuts announced in the 2016 Budget.

Using census data indexed to 2015, the modelling shows the percentage of income earners who would reap the full benefit of moving the second-top tax threshold cut-off from $80,000 to $87,000.

“This tax cut is highly selective, with very few receiving the $6 a week tax cut – all at the top end of the income spectrum,” Senior Economist at The Australia Institute, Matt Grudnoff said.

“Even in the highest paid electorate, the Prime Minister’s seat of Wentworth, the full cut will only be enjoyed by a third of income earners.

“Meanwhile, in electorates like Fowler and Blaxland in Sydney’s south west only 5% of income earners will get the $6 a week tax cut.

“This is a policy that delivers for more than six times as many voters in some electorates compared to others.

“By political parties, the least benefit is clearly flowing to National Party seats. In the electorate of New England, held by Deputy Prime Minister Barnaby Joyce, only 8% of income earners get the full tax cut.

“This modelling also shows why median, rather than mean income gives a far better insight into what most Australians earn. While the average may look high, it’s being pushed up by some extremely high income earners,” Grudnoff said.