Budget worsens gap, says Vinnies

Sydney
16 June 2002

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Budget worsens gap, says Vinnies

The Federal Budget has worsened the growing gap between the wealthy and low/middle income households, according to John Meahan, acting national president of the St Vincent de Paul Society.

If the budget is adopted without significant changes it will exacerbate the situation by curtailing resources for the disadvantaged because of increasing generosity to the wealthy, Mr Meahan said.

He said resources for the disadvantaged had already been reduced before the Budget by measures such as the non-means-tested private health insurance rebate, the first home owner grant applied to million-dollar properties, huge funds provided to elite private schools and the GST.

The Budget had made this worse by the proposed reduction of the superannuation surcharge for the wealthy, tax rebates for wealthy retirees and an increase in funding for private schools that was three times that for government schools.

Mr Meahan added: “Charities have been left to meet increasing costs of carers and workers in refuges and services for the homeless.”