The 13,600 people living in poverty in Bendigo will be left behind by tax cuts in the Federal bugdet, according to the chief executive of the Victorian Council of Social Services.
CEO Emma King said the cuts were inherently unfair, favoring those on higher incomes and posing a risk to funding for essential services.
The budget proposed to reduce taxes by creating a tax rate of 30 percent for people earning between $45,000 and $200,000 each year, effective in 2024-25.
Those who earn more would get more money back than those who earn less, on a graduated scale, if this system was implemented.
People who earned $50,000 would earn get about $23 in tax back each week, while those who earned $200,000 would get $224, Ms King said.
She said cuts would advantage people who are doing very well, at the "absolute expense" of people who have nothing.
In Greater Bendigo 13,600 people live in poverty, nearly 14 percent of the city's population.
California Gully had the highest poverty rate, with 19 percent of its population living in poverty in 2016.
Maiden Gully and Strathfieldsaye had the lowest, in each eight percent of the population lived in poverty.
"When we look at the tax cuts it shows that they mean less and less for people who are on the lower end," Ms King said.
"People on those lower incomes get disproportionately considerably less.
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Ms King said tax cuts could also mean cuts to community services like aged care, health, education and disability services.
"It's inherently unfair. But also the [cuts are] going to come at a cost," Ms King said.
"The biggest beneficiaries are people on high incomes, and it will come at the cost of essential services.
"If we're going to have tax cuts what we're going to see is some of our community services, that money is going to get cut, because there's not enough to be able to do everything."
Poverty is a problem that gets worse beyond the centre of Bendigo, Ms King said.
She described poverty in Bendigo as "graduated" by distance from the city centre.
"You go out five kilometres, you go out 10 kilometres to where the housing is supposedly cheaper, you need a care, your access to services costs more, and your general costs go up," Ms King said.
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Elspeth Kernebone
Accident brought me to journalism, but every day convinces me again that strong media is more important than ever. After a starting off as the sole reporter in a tiny NSW town, I’m loving the teeming metropolis that is Bendigo. Focussed on health, business and education. Got a tip? Email elspeth.kernebone@bendigoadvertiser.com.au.
Accident brought me to journalism, but every day convinces me again that strong media is more important than ever. After a starting off as the sole reporter in a tiny NSW town, I’m loving the teeming metropolis that is Bendigo. Focussed on health, business and education. Got a tip? Email elspeth.kernebone@bendigoadvertiser.com.au.
