Federal budget to do ‘effectively nothing’ for low-income earners but rich to gain, analysis shows

Just $17 will flow to lowest earning 20% of Australians while those in the highest income bracket will gain $5,740 in 2024-25, researchers say

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The lowest income earners will get effectively nothing" from the Labor government's key welfare and tax settings, an academic analysis has forecast, with economists warning of a rise in income inequality from increasing childcare subsidies, paid parental leave and the stage-three tax cuts.

Just $17 in benefits will flow to the lowest-earning 20% of Australians while those in the highest income bracket will receive $5,740 in the 2024-25 financial year, according to modelling from the Australian National University. The distributional analysis of key budget measures forecasts a drop in personal income tax revenue for the government of $18.3bn in that year.