Average impacts The package as a whole is expected to benefit around 1,340,000 families by an average of $26 per week. The table below shows the impacts across the population for those families who gain from the Family Incomes Package. These are approximate changes by income quintile, and indicate how a family’s average gain is distributed across the elements of the package. 1: Distribution of gains by element Minimum Number of Average change in: Average gain income Families from all Quintile in who gain Tax IETC WFF AS elements 1 * 154,000 $5.13 ($0.10) $16.63 $17.04 $35.32 2 $24,000 296,000 $11.07 ($5.73) $6.10 $3.81 $15.11 3 $51,000 296,000 $20.90 ($2.32) $2.98 $2.14 $23.69 4 $84,000 298,000 $28.12 ($3.77) $1.65 $0.25 $26.24 5 $127,000 298,000 $34.65 ($1.43) $0.00 $0.00 $33.22 Total 1,342,000 $21.58 ($2.94) $4.28 $3.32 $25.81 There will be flow-on gains to around 750,000 superannuitants and 41,000 students who also benefit from the Family Incomes Package. What is the economic effect of the package? In the short term, household consumption is expected to increase, increasing employment growth and reducing the unemployment rate by around 0.1 percentage points. Overall, the package results in a cumulative $3 billion increase in nominal GDP across the five years to June 2021. It is expected to have a modest, positive impact on GDP in the long run.
Average impacts The package as a whole is expected to benefit around 1,340,000 families by an average of $26 per week. The table below shows the impacts across the population for those families who gain from the Family Incomes Package. These are approximate changes by income quintile, and indicate how a family’s average gain is distributed across the elements of the package. 1: Distribution of gains by element Quintile Minimum income in Number of Families who gain Average change in: Average gain from all elements Tax IETC WFF AS 1 * 154,000 $5.13 ($0.10) $16.63 $17.04 $35.32 2 $24,000 296,000 $11.07 ($5.73) $6.10 $3.81 $15.11 3 $51,000 296,000 $20.90 ($2.32) $2.98 $2.14 $23.69 4 $84,000 298,000 $28.12 ($3.77) $1.65 $0.25 $26.24 5 $127,000 298,000 $34.65 ($1.43) $0.00 $0.00 $33.22 Total 1,342,000 $21.58 ($2.94) $4.28 $3.32 $25.81 There will be flow-on gains to around 750,000 superannuitants and 41,000 students who also benefit from the Family Incomes Package. What is the economic effect of the package? In the short term, household consumption is expected to increase, increasing employment growth and reducing the unemployment rate by around 0.1 percentage points. Overall, the package results in a cumulative $3 billion increase in nominal GDP across the five years to June 2021. It is expected to have a modest, positive impact on GDP in the long run.
2017-05-25-budget-2017-2-fact-sheet-1-family-incomes-package.docx