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Federal budget 2015: The tool that compares your family to the rest of Australia

Date

Patrick Begley

Tony Abbott says that in Sydney, $185,000 of family income "isn't especially high".

Is he right? And how do you compare?

Use the Fairfax Media living standards calculator to see where your family sits on a scale of 1 to 100. 

The calculator assesses your income, as well as household size and the number of adults versus children. 

A much more complicated tool would include other forms of wealth, such as the family home. But income remains one of the main determinants of living standards.

And when it comes to arguments over economic policy, our politicians often speak in terms of income. Like Mr Abbott, who said $185,000 was "not going to give you a particularly lavish life by any means". 

Or Labor's former chief whip, Joel Fitzgibbon, who said: "In Sydney's west, you can be on a quarter of a million dollars family income a year and you're still struggling."

The calculator will not settle the fights over who deserves what in the budget. Nor will it inspire radical redistribution; "We are the 56 per cent" seems an unlikely rallying cry.

But in discussing the nation's financial position, a greater sense of our own can only help. 

 

176 comments

  • What a ridiculous calculator. It means pensioners owning a 3 million dollar hlmansion and no debts are worse off then a family on 185k but with a mmortgage. Stop this pensioner bias and make them use thier expensive assets

    Commenter
    josh
    Date and time
    May 11, 2015, 10:48AM
    • A lot of the pensioners would have been living in the same house for most of their lives. When they originally bought the house when they were younger, I highly doubt it was worth $3 million back then. It would have most likely to have been a cheap "outer suburb" house, but with time and suburban sprawl the "outer suburb" house becomes a "middle/inner" suburb house. They would have had a mortgage back then just like a family with a mortgage now. It's just they paid it off.

      I think forcing them to sell and move to a different suburb away from their friends, family and support network would be cruel.

      Commenter
      Former Landlord
      Location
      Melbourne
      Date and time
      May 11, 2015, 11:23AM
    • Agreed, josh. It takes no account of assets such as shares which can be readily sold or, in the case of a number of people, funds which flow through from trusts plus any ability to reduce the taxable income like those who are aged between 60 and 65 and retired, receive no employer superannuation yet may contribute $35,000 pa to superannuation and receive 100% tax deduction.

      Commenter
      Donny
      Date and time
      May 11, 2015, 11:29AM
    • 'Stop this pensioner bias and make them use thier expensive assets"

      Yes those horrible old people who fought wars, spent years paying taxes and lived frugally when their kids were young!

      We must rally around the young couples of today who want to have their baby and maintain their DINK consumption habits and must have-it-all-now. C'mon everyone! Take it in the neck for your social betters! Those inner city character homes/outer suburban 4x3s mortgages, 2 4WDs, big screen tellies, overseas holidays, salon hair and nails, designer label bags, private schooling and yearly overseas holidays don't pay for themselves yanno.

      Commenter
      Nulligravida
      Date and time
      May 11, 2015, 11:48AM
    • Josh,
      Why should pensioners be required to "use their expensive assets"?

      By the same logic, should pensioners who spent all their working life income on overseas holidays and expensive cars be denied the aged pension on the grounds that their current poverty is all their own doing?

      That's the problem with the current system: it penalises thrift and rewards profligacy. Nor does it distinguish between those pensioners who are poor through no fault of their own, and those who are poor because they never bothered saving.

      Commenter
      Stephen
      Date and time
      May 11, 2015, 11:52AM
    • Really and just how do they do that and why should they after working their whole lives.

      Commenter
      Juan Chico
      Date and time
      May 11, 2015, 11:57AM
    • Donny. Read the instructions mate. You put your dividends (aka money that flows through shares) in there. Also- its a quick estimator, so no, it doesnt ask about money you have in family trusts in offshore jurisdictions to minimise taxable income- who is going to fill that in!

      Commenter
      Dave
      Location
      Melbourne
      Date and time
      May 11, 2015, 11:59AM
    • Exactly any home worth over $1,000,000 indexed should be included in the assets test. A million dollar home makes you a millionaire.

      Commenter
      kent
      Date and time
      May 11, 2015, 12:12PM
    • You do realize that even a person with $185K income can still buy a house for $250K in the outer suburbs. They cannot possibly be struggling on that income except by choice in wanting a lavish lifestyle. Why should a pensioner pay for that lifestyle???

      Keep in mind that when a pensioner bought their first home, they almost certianly bought a cheap house in an "undesirable" suburb. Nobody wanted to live in Richmond or Brunswick in the 70s.

      Commenter
      Big Picture
      Location
      Melbourne
      Date and time
      May 11, 2015, 12:26PM
    • "I think forcing them to sell and move to a different suburb away from their friends, family and support network would be cruel."

      I completely agree. But please bear in mind that this is exactly what the younger generations are being asked to do. We've been told that if we want to own a home, we should be prepared to move out of Sydney or even interstate. Apparently sauce for the goose is not sauce for the gander in this case.

      Commenter
      Red Pony
      Date and time
      May 11, 2015, 12:34PM

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