Wentworth biggest winner from income tax cuts, Nationals seats benefit least

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.”

 

Top 10 electorates

Percentage of average

Party

1

Wentworth, NSW

192%

LIB

2

North Sydney, NSW

180%

LIB

3

Warringah, NSW

172%

LIB

4

Sydney, NSW

167%

ALP

5

Melbourne Ports, VIC

160%

ALP

6

Higgins, VIC

159%

LIB

7

Bradfield, NSW

158%

LIB

8

Kooyong, VIC

156%

LIB

9

Grayndler, NSW

154%

ALP

10

Goldstein, VIC

150%

LIB

 

Bottom 10 electorates

Percentage of average

Party

141

Longman, QLD

77%

ALP

142

Cowper, NSW

77%

NAT

143

Port Adelaide, SA

76%

ALP

144

Lyne, NSW

76%

NAT

145

Wide Bay, QLD

76%

NAT

146

Wakefield, SA

73%

ALP

147

Braddon, TAS

72%

ALP

148

Lyons, TAS

72%

ALP

149

Hinkler, QLD

71%

NAT

150

Blaxland, NSW

70%

ALP

 

Party

Percentage of average

1

Liberal Party

110%

2

Labor Party

96%

3

National Party

82%

*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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