Selectivity: Government ignores $8.4b in carbon price compensation
While the Turnbull government has argued that carbon price compensation for welfare recipients must be cut because there is no longer a price on carbon, the income tax cuts delivered at part of the Gillard reforms will remain, and cost the budget bottom line far more.
The government claimed $1.3 billion in savings over the forward estimates from cutting incomes of the poorest Australians, including those unemployed, on the age pension, in carer roles and single parents.
New research from The Australia Institute has revealed that the changes to income tax rates which accompanied the implementation of the Clean Energy Act will be worth, conservatively, $8.4 billion over the forward estimates.
“The Government’s justification for these cuts is selective. And to select only those who can least afford to take an income cut runs in sharp contrast to claims that budget repair would be ‘fair’,” Executive Director of The Australia Institute, Ben Oquist said.
New polling of over 10,000 released today reveals very strong opposition (55%) to cutting Newstart, with only 32% of respondents supportive of the government policy. (full results below)
“The public do not support cutting the income of the very poorest Australians. Inequality is a growing problem and the ruthless targeting of the less fortunate goes against our national compact and fair-go culture.
“At the time of the Sydney Olympics, a couple on unemployment benefits had enough income to put them on the poverty line. These cuts would put Newstart 32% below it,” Oquist said.
Question: The Newstart allowance is currently $263.80 per week for a single person with no children. The Turnbull government proposes to cut Newstart for new recipients by $4.40 a week (removing the clean energy supplement).
Should the Senate pass the legislation cutting the Newstart allowance?
|
|
Total |
Female |
Male |
18 – 34 |
35 – 50 |
51 – 65 |
65+ |
|
Yes |
32.3% |
28.5% |
36.3% |
33.0% |
33.8% |
31.0% |
30.2% |
|
No |
54.9% |
56.6% |
53.1% |
54.7% |
52.9% |
58.8% |
53.1% |
|
Don’t know |
12.9% |
14.9% |
10.7% |
12.3% |
13.3% |
10.2% |
16.8% |
|
|
Total |
L/NP |
Labor |
Greens |
Oth/Ind |
Und |
|
Yes |
32.3% |
56.6% |
11.5% |
6.9% |
33.9% |
28.7% |
|
No |
54.9% |
28.5% |
80.0% |
82.1% |
54.5% |
41.5% |
|
Don’t know |
12.9% |
14.9% |
8.5% |
11.0% |
11.5% |
29.8% |
|
|
Total |
NSW |
VIC |
QLD |
WA |
SA |
TAS |
NT |
ACT |
|
Yes |
32.3% |
32.6% |
28.3% |
39.7% |
30.0% |
28.5% |
29.5% |
34.4% |
31.6% |
|
No |
54.9% |
55.4% |
59.1% |
46.8% |
56.9% |
56.3% |
58.6% |
45.8% |
57.3% |
|
Don’t know |
12.9% |
12.0% |
12.6% |
13.5% |
13.1% |
15.2% |
11.8% |
19.8% |
11.1% |
|
|
Total |
Income <$600 |
Income $600-$1000 |
Income $1000-$2000 |
Income >$2000 |
Income No answer |
|
Yes |
32.3% |
23.8% |
33.6% |
35.0% |
41.4% |
32.2% |
|
No |
54.9% |
62.9% |
55.3% |
53.9% |
50.1% |
48.9% |
|
Don’t know |
12.9% |
13.3% |
11.0% |
11.1% |
8.5% |
19.0% |
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