Lower middle-class welfare in Australia (Sydney Morning Herald)
Ordinary Australian workers are being excluded from the "welfare cake", with 17% less government benefits since 2010. The latest figures support the idea that Australia's middle-class tax cuts need to be supported.
According to the Sydney Morning Herald, data released on Wednesday by the Australian Bureau of Statistics, (ABS), showed that government benefits for most middle-income taxpayers have fallen from A $91 a week to A $76 a week since 2010. Government benefits to the poorest 20% and the richest 20% remain unchanged.
In response to the upcoming federal elections, Mr (Malcolm Turnbull) government and the opposition party Labour Party are battling for the support of middle-income voters, debating the two opposite tax concepts of "desire" and "fairness." The inability of both parties to agree on a A $144 billion tax cut for the government over the next 10 years left the fate of the bill to the one-nation (One Nation).
The Australian Bureau of Statistics, which publishes data every six years, reveals that the poorest 20 percent of Australia's population earns 3 percent of total income, but their share of income has risen to 13 percent after taking into account public benefits such as education and health care. In the past 15 years, the income share of the lowest-income group has risen from 0.8% to 3%.
Middle-income groups currently account for 16% of total income. Middle-and upper-income groups account for 24% of total income, but only 21% after redistribution.
Hockman (Bruce Hockman), chief economist at the Australian Bureau of Statistics, said government's welfare and tax system was counterproductive for the wealthiest 20 percent of the population. The highest income group accounts for 47% of total income, leaving only 35% after government benefits and taxes.
The study found that Australia's "equalised household income" rose 7 percent from FY10 to FY2015, excluding price factors. Measures include wages, operating income, government pensions, income taxes, education and medical expenses, and excise taxes.
Australia's federal budget accounts for more than 1 / 3 of total spending and will increase its share of gross domestic product (GDP) from 9.3 percent to 9.6 percent in fiscal year 2019 / 20. However, most of the increased spending will be allocated to the National Disability Insurance Scheme (National Disability Insurance Scheme).) Spending on Aboriginal benefits, administration, unemployment benefits, veterans' affairs and parenting families has declined as a share of GDP.