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A fairer tax and welfare system - fast facts
Facts about poverty and financial stress in Australia.
Read the full A fairer tax and welfare system - fast facts paper - pdf file
Profile of poverty and financial stress rate
- The after-housing poverty rate is 11.7% of households or 3.15 million people for December 2023.
- Poverty rates are highest for households relying on JobSeeker (59.6%), working age pensions (Disability Support Pension, Parenting Payment (Single) and Carer Payment (25.7%)), single parents (25.5%), lone persons (18.7%) and renters (17%).
- Financial stress rates are highest for households on JobSeeker (51%), working age payments (41%) and other welfare payments (49%), compared to a national average of 14%.
- Single parent households are more likely to experience financial stress than other households, with 38 per cent in financial stress.
Reform
- Costs of between $4.0 BN and $20.0 BN per year and are fully funded over the forward estimates.
- Does not require a major overhaul of systems, are progressive, significantly reduce inequality and poverty and drop the stage 3 tax cuts.
- Makes moderate changes to personal income taxation thresholds and reduce the capital gains tax discount (from 50% to 37.5%) and superannuation tax concessions. For the medium and high options, the tax-free status for retiree superannuation income over the age of 60 is removed. Superannuation tax is changed to an individual’s personal top marginal tax rate minus either 20 or 15 percentage points (depending on the option), rather than a largely 15% on both contributions and earnings.
- Affects a small to moderate number of high wealth, high income households by around $3000 per year.
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