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ANU study reveals that the most underprivileged urban areas stood to benefit the most from Labor’s initial term’s fiscal and social welfare changes | Upcoming Australian Elections in 2025

Households in the poorest outer suburban electorates have emerged as the biggest beneficiaries from the social welfare and tax policies implemented by the Albanese government during its first term in power. The Australian National University’s Centre for Social Policy Research has analyzed how a highly progressive Labor agenda will boost incomes among the least well-off households by an average of $1,672 in 2025-26.

On the other end of the spectrum, the wealthiest households on average will be nearly $800 worse off. This is because the rejigged stage-three tax cuts will leave them worse off than they would have been without the change.

With the high cost of living consistently ranked as the number one issue among voters, Labor’s policy changes appear to be targeted towards assisting those most in need. This is reflected in the breakdown of winners and losers by electorate, where lower socioeconomic suburbs have done the best, at the expense of more affluent areas – mostly in inner-city regions.

The Labor-held seat of Spence in outer Adelaide is the biggest winner, with an average annual income gain of $1,360 in 2025-26. The marginal far-north Queensland electorate of Leichhardt, where Labor aims to secure the seat held by retiring Liberal MP Warren Entsch, is a close second, with households expecting a $1,240 gain.

In contrast, households in the now wealthy inner-Sydney electorate of Grayndler, held by Treasurer Jim Chalmers, are projected to be $200 worse off in the next financial year. The findings have been visualized in maps showing the impact of Labor’s policy changes, with inner-city seats being negatively affected while outer suburban and regional seats reap benefits.

Source: https://www.theguardian.com/australia-news/2025/apr/10/poorest-urban-fringe-electorates-gain-most-from-labors-first-term-tax-and-welfare-reform-anu-research-shows

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