Proof the 2016 Budget leaves the poorer worse off… just like last year

It would be wishful thinking to even assume at Budget would benefit lower income earners, but now it’s been confirmed:

It would be wishful thinking to even assume at Budget would benefit lower income earners, but now it’s been confirmed: the 2016 Budget is going to leave poorer families worse off.

According to analysis by Australian National University associate professor Ben Phillips, the main changes in the budget will leave Australian households $345 a year worse off, on average.

The Guardian reports the modelling found households in the lowest 20% of income earners were $446 a year worse off, a loss of 1.5% of their disposable income, compared with the top 20% of households who were $434 a year worse off, just 0.2% of their income.

The ANU modelling considered the effect of nine major budget changes in the year 2018-19, when they will be in force.

Budget changes such as family tax benefit payments, increasing the cost of tobacco and personal income tax cuts for workers were all included, and the hardest hit were singles.


But it’s welfare changes that make the most impact: the proposed reductions will take $254 a year away from families in 2018-19.

The report said “the superannuation changes do assist in providing a more progressive budget impact”.

The superannuation changes that were considered included reintroducing the low income superannuation tax offset, increased taxation on superannuation balances over $1.6m and restricting concessional annual contributions to $25,000 a year.

For us, it seems it’s too little too late.

Dr Phillips says modelling plays an important role in helping people understand how the at times confusing budget changes will affect them.

“Obviously, governments aren’t always that keen to provide great detail about the impact of budgets because there are often losers,” he said.

“But modelling provides the cold hard facts.”

Tell us, do you feel ripped off by the Budget? Are you worried about your future?

  1. Sue Willett  

    Many people seem to assume that age pensioners have large private income plus government pension along with a valuable house and investments. Many – very many – of us still have a mortgage on a small house or are renting, no investments and no super to give us anything extra. Many of us, who are able, are trying to earn a little extra however possible. So if you’re one of those people who thinks it’s a doddle on the pension and that we can travel and simply laze about – and why not anyway after 40 – 50 years of working – think again. Think hard and long. There hasn’t always been compulsory super and child-minding subsidies and pregnancy leave …. I love life but it does get a bit annoying when all you hear about in the media is pensioners with big assets. They are not the majority. 😊

    • Keith Schadel  

      You are so right, l live in an area with a high pensioners population, it has been nominated as a Centrelink Fraud area and now Centrelink have involved the AFP in a campaign of investigation. Personally, l have now been investigated three times in the last four months with them treating me like a criminal. Wish l knew where l had stashed all the money, then maybe, l could start to live it up, rather than survival on aged pension.

  2. Trish Bolton  

    Part of the problem is that we do not have a voice that will stand up for us. It doesn’t matter that you have worked hard, paid your taxes, once you are no longer putting money into the Government ‘Coffers’ you are past you use by date, it doesn’t matter that you cared for 2 aged parents, and nursed your Mum at home until she passed away at 94 and was paid $50 per week, saving the Government $1000 per week, but I wouldn’t have had it any other way, now in private rental paying $620 per fortnight from the pension there isn’t enough left for contents insurance, car insurance, $80 per month medications, not to mention food, electric etc, do not smoke or drink. Not much in life to live for really.

  3. trisha  

    No matter how clever we are we are always struggling on the pension. Our electricity bills are huge, our rates go up annually, and so does everything else. We gain around $5-6 per annual rise. So we are heading backwards rapidly.
    Not sure if anyone cares. I feel we are a burden after working our entire life. Never been on the dole. Never received huge child payments etc etc. Never received subsidized wages. Very little Super and that went in paying off our home.
    No it isn’t worth heaps, it is a little cottage. So we continue and no one cares. This budget just continues us on the downhill run.

  4. Henry  

    Tell us, do you feel ripped off by the Budget?
    -Rather than feeling ripped off, it’s worse than that. Baby boomer age pensioners have been maliciously abused, treated like 2nd class citizens and kicked in the guts by the politicians of all sides of the government.

    Are you worried about your future?
    – Yes. The cost of living, despite the false and manipulated inflation figure, is going to get higher, much higher. Politicians will give themselves pay increases of $100-$200 per week and give pensioners a piddly $3 a week pension increase. It’s been like this since the Liberal lied their way into power. The future for age pensioner home owners who are cash poor is bleak. The 30-40 years of sacrifice they made to pay off their home and to be mortgage free at time of retirement was all for nothing. Many will be forced to sell their homes, and rent homes at a cost of $26,000 per year and live of the proceeds until all of their funds are eroded by the cost of living and maintaining their health., eventually reaching the point of qualifying for a full age pension, if they still can in the future. The alternative, if one wants to remain in the home is to apply for a pension loan by way of a reverse mortgage. In the end the bank and the government will own those pensioner’s homes and recover their loans by selling their property to make a financial gain for itself. Charges for compounding interest, legal fees, stamp duty, mortgage insurance,bank fees will all erode any remaining residue from the property sale . Their children or grandchildren will inherit very little, if anything.
    This is stealing, from the baby boomers who worked hard all their lives, paid their taxes that supported the age pensions of the home owner parents and grandparents of the people in the past, including retired politicians. This is denying the baby boomers, the same right.

  5. Heather Dyas  

    Attention Billy and Malcolm

    Regarding pensioners not having a voice I feel the best way to get the attention of the politicians is to not vote and I mean every single pensioner does not go to the polls we will all then get letter to pay a 20 dollar fine which we will advise them to take out of our pensions at a $1-00 per fortnight until it is paid the cost to them doing this would be huge. Maybe we then can get them to take notice the threat in itself would worry the crap out of them.

    • Bev Seton  

      If you don’t vote, someone will vote for you, they call it a donkey vote, then you will have no idea who got your independent. Or put the top 3 at the very bottom

  6. Susan Bell  

    Do not refuse to vote, thousands of people all over the world died for the right to vote, what do you think Eureka was all about. If you do not vote you do not have the right to complain about anything governments do. The conservatives want to make voting voluntary, the reason? Most people who do not vote are elderly, pensioners, poor, students, black and young, without their vote the rich will always win. Go out and encourage people to vote, be active, be educated, write letters, send emails, sign petitions. Remember the ancient Greeks called men who did not vote IDIOTS.

  7. jan dodson  

    The reason the Government hits the pockets of low income earners and pensioners is so they can keep their rich mates richer. .. Starve us to death

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