The Australia Institute has analysed the average electorate household benefit* from the income tax cuts announced in the 2018 Budget, as a proportion of the National Average benefit.

The figures represent the change in household disposable income (after tax income) as a percentage of change in the national average.

“This tax cut is highly selective. It mostly benefits high income areas and wealthy inner-city electorates,” said Matt Grudnoff, Senior Economist at The Australia Institute.

“While the biggest winners are all wealthy inner city electorates in Melbourne and Sydney, the losers are spread across the country and are a mix of both regional and city electorates.

“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 the least benefit flows to National Party seats. One quarter of Nationals’ seats are in the bottom 10 electorates, and all but one of their seats are ranked in the bottom half of electorates.

“Meanwhile, only the average for Liberal party seats was greater than the national average.”

*Note: This analysis covers benefit from all budget impacts. However, the income tax cuts make up over 99% of those impacts. For ease of explanation we will treat the change in disposable income as equivalent to the impacts of the tax cuts

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