Budget favours higher earners as homelessness services slashed by nearly $40m

ANU modelling shows 56% of dollar value of cost-of-living measures goes to Australia's middle and higher income earners

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Homelessness services will be nearly $40m worse off under the federal budget and may have to shed hundreds of jobs, as new modelling shows the government's cost of living measures will disproportionately benefit higher-income earners.

Treasurer Josh Frydenberg announced on Tuesday that the budget would include $8.6bn in one-off cash payments and temporary changes to petrol and income taxes to help ease the rapidly rising cost of living.