New analysis from the Australia Institute shows regional Victoria would receive below average benefits compared to the average Australian household from income tax cuts, outlined in the 2018 federal budget.

The figures represent the change in household disposable income (after tax income) as a percentage of change in the national average. Modelling also took into account tax cuts and other budgetary measures announced in the 2018 budget and then averaged out the benefit in dollar terms to each federal electorate.

“While the biggest winners are all wealthy inner city electorates like Melbourne and Higgins, the losers are spread across electorates like Gippsland and Ballarat.” said Matt Grudnoff, Senior Economist at The Australia Institute.

Once the numbers are averaged across the nation, families in regional electorates receive 86 cents for every dollar received by the average household. City electorates receive 112 cents. See figure 1.

“This tax cut is highly selective. The electorates of Melbourne Ports, Higgins, Kooyong and Goldstein all receive at least one-and-a-half times the national average”

“This is a tax cut that truly delivers for the top-end and leaves everyone else behind.”

Table 1: Electorate Totals