9 May 2018: Australia’s highest wage earners will benefit most from the 2018 Federal Budget, experts at the University of Canberra’s National Centre for Social and Economic Modelling (NATSEM) have confirmed.
NATSEM’s analysis includes the tax offset, changes to income tax thresholds, and other minor changes to the tax and transfer system. The analysis is not just of the tax changes – it includes all the changes to the tax/transfer system proposed in the 2018 budget, and any increases in wages over the future years affecting Family Tax Benefit allowances.
NATSEM’s modelling shows that a two-parent family with both parents earning $100,000 and two school-aged children will be $1,022 better off in 2018/19 compared to 2017/18. This will increase to $4,280 by 2024-25.
Low-middle income earners are set to benefit from handouts of up to $530 starting next financial year, meaning a lone parent family earning $70,000 per year and with two children will be $757 better off in 2018-19 and $3,486 better off by 2024-25 due to indexing of FTB-A and FTB-B.
“This is complex modelling, and includes FTB-A and FTB-B indexation, the tax changes, and any other minor changes in the 2018 Budget,” Professor Robert Tanton, Director of NATSEM, said. “It is the first time in Australia that this capability has been available online.
“Our modelling includes all aspects of the tax and transfer system, and allows us to see the impact due to the different parts of the system.”
Professor Tanton said while most working Australians will receive some relief from the tax changes, younger workers and welfare recipients don’t stand to benefit at all.
“People, particularly students, earning low salaries due to working minimal hours and those drawing an income from government initiatives such as Newstart will barely be impacted by the tax changes,” Professor Tanton said. “The tax cuts are aimed at nine-to-five workers – people already paying tax.”
The aforementioned scenarios were run using NATSEM’s family impact model. Individuals wanting to see how the 2018 budget will affect them personally can jump online to NATSEM’s online modelling system STINMOD+.
Note to journalists: Any analysis published using this model must acknowledge NATSEM and the University of Canberra.
Contact the University of Canberra media team:
Antony Perry: 0434 795 919
Claudia Doman: 0408 826 362