'Squeezed middle' not hit as hard as top- and bottom-earners in Budgets: ESRI

High and low income families have been hardest hit by budgets since 2008.

Research published today by the ESRI shows incomes in the lowest 10% experienced losses of close to 13%.

Top earners have seen losses of about 15.5%.

The analysis focuses on the impact of changes in tax, welfare and public sector pay.

ESRI Research Professor Tim Callan said there was a misconception that middle income households were hardest hit.

"Policy changes have reduced incomes by 10% for most groups," he said. "The worst-affected are at the top of the income distribution where they are reduced by more than 15%, and then at the bottom.

"That's quite different from the 'squeezed-middle' story where people say the middle has been squeezed more than others. It hasn't. It has been squeezed, but by less than (those at) the top and bottom of income distribution."