Tax cut windfall: Regional VIC loses out

New analysis from the Australia Institute shows regional Victoria 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 like Melbourne and Higgins, the losers are spread across electorates like Gippsland and Ballarat.” said Matt Grudnoff, Senior Economist at The Australia Institute.

Once the numbers are averaged across the nation, families in regional electorates receive 86 cents for every dollar received by the average household. City electorates receive 112 cents. See figure 1.

“This tax cut is highly selective. The electorates of Melbourne Ports, Higgins, Kooyong and Goldstein all receive at least one-and-a-half times the national average”

“This is a tax cut that truly delivers for the top-end and leaves everyone else behind.”

Table 1: Electorate Totals

Rank

Electorate

Percentage of average

Party

1

Melbourne Ports

160%

ALP

2

Higgins

159%

LIB

3

Kooyong

156%

LIB

4

Goldstein

150%

LIB

5

Melbourne

143%

GRN

6

Jagajaga

118%

ALP

7

Menzies

114%

LIB

8

Batman

108%

ALP

9

Wills

107%

ALP

10

Gellibrand

106%

ALP

11

Deakin

105%

LIB

12

Chisholm

104%

LIB

13

Maribyrnong

102%

ALP

14

Isaacs

99%

ALP

15

Dunkley

98%

LIB

16

Aston

98%

LIB

17

La Trobe

97%

LIB

18

Hotham

97%

ALP

19

Flinders

94%

LIB

20

Casey

93%

LIB

21

Corangamite

93%

LIB

22

Bruce

91%

ALP

23

McEwen

90%

ALP

24

Bendigo

86%

ALP

25

Lalor

86%

ALP

26

Ballarat

86%

ALP

27

Corio

85%

ALP

28

Scullin

84%

ALP

29

Indi

84%

IND

30

Gippsland

83%

NAT

31

Wannon

82%

LIB

32

McMillan

81%

LIB

33

Gorton

81%

ALP

34

Mallee

80%

NAT

35

Murray

80%

NAT

36

Holt

79%

ALP

37

Calwell

78%

ALP

Total

Victoria

101%

 

 

 

 

 

 

Media Enquiries

Anna Chang Communications Director

0422 775 161

anna@australiainstitute.org.au