Budget statistics set to be an election battleground

Last month's Budget lifted the after-tax income of some families earning $38,000 a year gross to between $42,000 and nearly $49,000.

These figures are likely to form a key battleground for next year's election.

At that level, the family income closes in on similar families earning between $60,000 and $70,000 a year gross.

The difference is explained by levels of support paid in family assistance and the accommodation supplement. Families on lower incomes qualify for more state-funded help.

Social Development Minister Steve Maharey is defending the Government's "working for families" Budget package, saying it gave far more benefit to low- and middle-income working families than tax cuts.

Mr Maharey said slashing taxes would benefit single people and high-income couples with no children and would make little difference to the weekly earnings of low- and middle-income working families.