Inequality rises as government intends to again clip poorest

‘This tax cut means that someone on $60,000 a year pays $19.30 per fortnight less in tax as compensation for the carbon price’



The Australia Institute's Ben Oquist says the
 actual income of the lowest paid
had gone backwards over the past two decades. 

The Turnbull government's plan to close off carbon tax compensation in the form of the clean energy supplement to a range of new welfare recipients, will exacerbate inequality, driving the poorest incomes down to as low as 32 per cent below the poverty line within three years, according to new research by the progressive Australia Institute.

The study shows the 2016 budget decision to deny new welfare and Family Tax Benefit recipients the modest supplement at a saving of $1.4 billion to the Commonwealth, will add to a widening wealth gap in which the 10 richest Australians already own as much as the bottom 4 million put together.

Read Mark Kenny’s story in today’s Melbourne Age - “Inequality rises as government plans to clip poorest further.”