The poorest families in Melton and Moorabool stand to lose $20,000 over the next four years because of federal budget cuts.
But those who are well off will see more of their disposable incomes.
New analysis from the National Centre for Social and Economic Modelling, commissioned by federal Labor, reveals Australia’s poorest families would lose about seven per cent of their disposable income over the next four years because of federal budget cuts.
“In percentage terms, the impact is clearly felt by the lowest-income families more than high-income families,” report author Ben Phillips said.
A single parent with two children, one in primary and one in secondary school, and earning $55,000 will lose more than $20,000 over the next four years.
A couple with two children, one not yet at school and one at primary level, with a single income of $75,000 would lose only $6000 over the next four years.
“The results clearly demonstrate that low-income families with children are the main family group to be adversely impacted by policy changes since last election,” Mr Phillips said.
“High-income families and singles, and couples without children, are shown to be largely unaffected by this budget, either in the short or longer term.”
Gorton MP Brendan O’Connor said the budget would hurt families in Melton harder than most areas of the country.
“The families who can least afford it, and there are many in Melton, are being hurt the most by this budget,” Mr O’Connor said.
“Even when the government’s new childcare measures are factored in [in 2017], families will still be left thousands of dollars worse off.”
But Social Services Minister Scott Morrison dismissed the analysis report, saying it was merely a political document from Labor.
“The government does not accept the Labor-commissioned modelling because the brief provided by Labor skewed the objective of the budget,” Mr Morrison said.
During question time last Wednesday, Mr Morrison told Federal Parliament the government wanted to see more families off the dole.
“We want to see more families earning more by working more; more families that are paying more in tax than they are receiving in benefits.”
