Abbott's budget leaves poor Australians HUNDREDS of dollars more out of pocket than high and middle-income earners

Federal government was aware of cost cutting would hit poorer families harder than wealthier households

Spending cuts have cost low-income families $842, while high-income households are out of pocket only $71

Analysis was one of several provided to government but Treasury failed to release more than one model



Poorer Australians are out of pocket hundreds of dollars more than high and middle-income earners as a result of the federal government's budget, Treasury figures reveal.

When the government handed down its widely criticised budget in May, they were aware cost cutting would hit poor families harder, according to a Freedom of Information request from Fairfax.

The Treasury numbers show spending cuts have cost lower income families an average of $842 a year, while high income households only lost $71 and middle income families are out of pocket $477.

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When the government handed down its widely criticised budget in May, they were aware cost cutting would hit poor families harder, according to a Freedom of Information request

Budget measures do not take into account changes like the $7 Medicare co-payment or inflation and therefore understates the negative impact of budget measures on poorer income households.



The analysis was one of several provided to the government, but the Treasury failed to release more than one detailed model ahead of the budget.

A spokeswoman for Treasurer Joe Hockey said average low-income households would still receive $12,604 in 2016-17 in cash transfers like family benefits.

The Treasury numbers show spending cuts have cost lower income families an average of $842 a year, while high income households only lost $71 and middle income families are out of pocket $477

'Our budget aims to make the welfare system sustainable and to reduce $123 billion in projected deficits and debt, heading towards $667 billion without remedial action,' she said.

'Our budget is focused around building a stronger economy so Australians can experience more and better jobs.'