The Coalition’s budget will see a widening gap between rich and poor, undermining middle Australia, according to a new analysis from the National Centre for Social and Economic Modelling.

The report published in today’s Sydney Morning Herald shows that the poorest fifth of Australian families will pay $1.1 billion more in taxes than the richest households due to the budget.

 

Unions NSW Secretary, Mark Lennon, said the need for continued community and political action against the budget was urgent.

 

“Having a large and robust middle Australia is the sign of a healthy society. But here we see expert analysis showing that the Abbott Government is pulling out all stops to widen the gap between rich and poor.

 

“This is not the Australia we want to live in.

 

“This Government is positioning itself as some sort of reverse Robin Hood, all in aid of a budget emergency that doesn’t actually exist.”

 

The report finds that the hardest hit families are those with school-age children who will lose $15.9 billion over four years, more than 90 per cent of the total.

 

It also shows that between $4000 and $6250 will be ripped from the pockets of low and middle-income sole parents, stripping them of between 10 and 15 per cent of their annual income by 2017-18.

 

“If allowed to stand in its current form, this budget will fundamentally reorient Australian society into two groups, winners and losers,” Mr Lennon said.

 

“Unions are proud of the social cohesion this society enjoys and we intend to defend it.”

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