QLD loses out in tax cut windfall

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New analysis from the Australia Institute shows that Queenslanders would receive below average benefits compared to the average Australian household from income tax cuts, outlined in the 2018 federal budget.

 The figures represent the change in household disposable income (after tax income) as a percentage of change in the national average. Modelling also took into account tax cuts and other budgetary measures announced in the 2018 budget and then averaged out the benefit in dollar terms to each federal electorate.

“While the biggest winners are all wealthy inner city electorates in Melbourne and Sydney, the losers are spread across electorates like Longman, Hinkler and Wide Bay in Queensland.” said Matt Grudnoff, Senior Economist at The Australia Institute.

Thee Queensland electorates – Longman, Hinkler and Wide Bay – all fall into the bottom 10 when ranked against the average benefit received by all other 150 Federal electorates. See figure 3.

Once the numbers are averaged across the nation, families in Longman only receive 77 cents for every dollar received by the average household. See figure 1.

“This tax cut is highly selective. In the highest paid electorate, the Prime Minister’s seat of Wentworth, households receive almost double the national average benefit”

“The top 10 electorates all get at least one and a half times more than the national average. This is a tax cut that truly delivers for the top-end and leaves everyone else behind.

“By political party, it is clear that in QLD the least benefit flows to National Party seats. And on a national scale, one quarter of Nationals’ seats are in the bottom 10 electorates, in fact all but one of their seats are ranked in the bottom half of electorates.

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