This post includes responses to the 2024-25 Federal Budget on the social determinants of health, amid significant concerns for equity and deep disappointment at no real boost to Job Seeker and other desperately low income supports, while delivering tax cuts and energy cost relief to wealthier households.
“There is a gaping hole at the heart of this budget,” is the early verdict from the Australian Council of Social Service (ACOSS), which said the Federal Government has failed to take the bold approach needed to address the housing crisis.
“People on the lowest incomes expected and deserved much more in this Budget,” it said.
Independent Senators Jacqui Lambie and David Pocock were equally scathing about the $300 energy relief payment to go, without means testing, to every Australian household.
See our rolling coverage below, with statements from: ACOSS, National Shelter, National Tertiary Education Union, TasCOSS, Jesuit Social Services, Brotherhood of St Laurence, Everybody’s Home, Mission Australia, Australia Institute, Kylea Tink, Andrew Wilkie, and others.
- Budget papers
- Department of Health and Aged Care budget links
- Statement by Minister for Indigenous Australians, Linda Burney
- Women’s Budget statement
Budget has a hole in its heart
Australian Council of Social Service (ACOSS)
“The government has correctly identified a set of serious challenges: a slowing economy, rising unemployment, falling spending power, a housing crisis and a climate crisis.
This is a budget that has diagnosed the right problems but has failed to deliver the solutions we need.
There are some positive measures, including investments in Services Australia, the Remote Jobs Program, positive signals on employment services reform, a very modest rent assistance increase worth up to $9 a week for a single person, as well as additional investment in key services including homelessness, Family Violence Prevention Legal Services and emergency relief.
However, there is a gaping hole at the heart of this budget.
At a time when unemployment is being deliberately increased to curb inflation, the government is deliberately and cruelly denying people receiving unemployment payments decent income support.
This budget will deliver eyewatering tax cuts to the wealthiest people in the country and, at the same time, it cruelly denies the increase in income support that over one million people struggling to survive on JobSeeker and Youth Allowance desperately need.
The $300 energy rebate will be the only cash support the majority of people on JobSeeker and Youth Allowance will receive. Extending it to everyone – regardless of income – is extraordinarily wasteful. It does not target support to people most in need.
The budget’s investments in renewable energy are welcome and critical if we are to address the climate crisis. However, we also needed to see similar investment to support people on the lowest incomes to transition to renewables, including having rooftop solar on their homes. People on the lowest incomes are worst affected by the climate crisis but have the least resources to manage the transition.
The modest Commonwealth Rent Assistance increase builds on last year’s rise, giving a single person an extra $9.40 a week if they’re receiving the maximum rate. Based on median rents, private renters receiving JobSeeker or Youth Allowance will still be in deep housing stress because their base rate of payment is so low. Even with the increase, they will be paying half of their income in rent alone.
ACOSS welcomes the Remote Jobs Program, which delivers $777m over five years to create 3,000 jobs. People in remote areas are at highest risk of unemployment and this is a welcome step to improving employment opportunities. Disappointingly, Remote Area Allowance was not increased in this budget, despite having stayed the same rate for more than 20 years.
The extension of the higher rate of JobSeeker for people who cannot work more than 0 to 14 hours will support 4,700 people – not even half a percent of the more than one million people receiving JobSeeker and related payments unable to afford food.
People on the lowest incomes expected and deserved much more in this Budget.
ACOSS welcomes the adjustments to the Carer Payment – this will make it easier for carers to engage in paid work, without fear of their payment being cancelled. ACOSS also welcomes the $600m per year over three years for frontline staff at Services Australia to reduce the backlog of claims. Services Australia needs investment to improve service delivery so that people are not waiting months for payment claims to come through.
The government has failed to take the bold action required to address the housing crisis, effectively maintaining current inadequate funding levels for the National Agreement for another five years when there is huge demand for social housing. We welcome the additional funding for homelessness services and community housing, but ultimately many people will still be without an affordable home after this budget.
This budget was an opportunity for the government to take bold action to address the serious issues the country faces. While it has identified these challenges, its actions fall well short of delivering solutions.
Listen to the ABC RN interview with Dr Cassandra Goldie, who slams the Government’s failure to lift the incomes of people receiving unemployment benefits, while providing tax cuts and other benefits to wealthy people.
“This was a budget that required hard choices and we should have seen the right targeted help to people who are struggling the most, and that being the top priority, and that’s not what happened,” she said.
Australia is a very wealthy country, said Goldie, and yet we have over 3.5 million people, one in six children, living poverty. Fixing social security is the top priority for ending poverty in Australia, she said. It also provides a foundation then to build build skills training, and expand access to higher education.
Political perspectives
Welcome housing support but bold action missing
National Shelter
National Shelter, the peak body representing the housing interests of low-income Australians, said the Budget builds on the Albanese Government’s significant investment towards solving the housing crisis.
It said it does this in this Budget by targeting initiatives to remove impediments to the construction of housing including training construction workers and funding enabling infrastructure.
“These are critical measures to expedite the supply of new housing to the market and also contribute to speeding up the supply of social and affordable housing. The additional measures to support community housing providers and Housing Australia are welome to expand their capacity to respond to the housing crisis.”
National Shelter says the further increase to Commonwealth Rent Assistance will continue to provide some relief to private rental households in housing stress, as will relief from energy bills, extending eligibility for existing higher base rate of JobSeeker payments, and freezing the maximum Pharmaceutical Benefits Scheme.
“However, we still need to see a more meaningful response to poverty and cost-of-living for low-income households by significantly increasing income support and allowances,” it said.
National Shelter also welcomed the resolution of the new National Agreement on Social Housing and Homelessness (NASHH), which means the sector can focus on front line service delivery for those experiencing homelessness and housing insecurity with certainty for the next five years.
“The doubling of funding to homelessness service is overdue, but we are concerned that there is no significant uplift in a five-year housing and homelessness agreement – this is not a scaled investment to the demand that exists,” it said.
“We are also concerned that the additional funding in homelessness has come at the expense of the housing component of the agreement, specifically repairs and maintenance.”
Shelter said it would have liked this Budget to make bold decisions about structural reform of the housing system in Australia including reforming tax concessions for negative gearing and the Capital Gains Tax discount that entrench inequality in our housing system.
“Additionally, we need to understand the framework that is guiding these investments in housing and homelessness via a National Housing and Homelessness Plan. We need to understand the aspirations and targets, and how shorter term funding measures are being delivered within a context of a pathway to permanency and long-term housing solutions.
“We know government has an appetite to solve the crisis, but we are still waiting for bold reforms that could address the core problems in our housing system.”
Just first step in desperately needed uni reform
National Tertiary Education Union
The National Tertiary Education Union has described the federal budget as a first step on the road to major reform universities desperately need.
“The Federal Government has earmarked $1.1 billion in funding over the next five years to implement recommendations from the Universities Accord.
NTEU National President Dr Alison Barnes said more investment would be needed to combat a sector in crisis.
“This budget must be the first step on the road to the major reforms needed to combat the explosion in insecure work, rampant wage theft and a broken governance model,” she said.
“It’s clear the government takes the Universities Accord’s final report seriously, but we’ll need to see a much more ambitious response to properly address the deep problems in higher education.
“Staff must have a seat at the table in overseeing what must be the most significant university reforms in a generation.
“We have proudly fought alongside student unions for measures to ease student debt so it’s welcome to see those calls beginning to be answered in the budget.
“We need the government to be upfront about what its plan to slow the growth of international student numbers means for university funding.
“Already-stretched university staff simply can’t afford more funding cuts after a disastrous decade under the coalition.
“The Australian Tertiary Education Commission has the potential to improve our sector but only if staff are truly represented when it is established in mid-next year.
“The NTEU will ramp up its fight for better universities, which serve Australia’s best interests for generations to come.”
Priorities wrong
TasCOSS
“There were many welcome announcements in this Federal Budget, however TasCOSS believes the Government got its priorities wrong, particularly choosing not to increase JobSeeker, and providing universal rather than targeted cost of living relief.
In this ongoing cost of living crisis, it was a missed opportunity to put people with the least, first.
Increasing the rate of JobSeeker would have been the simplest investment the Government could have made to reduce poverty in this country and it chose not to do so.
People receiving these payments already know a lot about ‘restraint’ – only eating one meal a day, skipping essential medication and foregoing heating in a desperate bid to keep a roof over their heads.
In addition to the Government appointed Economic Inclusion Advisory Commitee, Australia’s leading economists urged the Prime Minister to increase income support payments, noting the impact on inflation would be negligible.
The decision to increase the Commonwealth Rent Assistance by 10% is welcome but it falls well short of what is really needed and based on median rents means private renters will still be in deep housing stress because their base rate of payment is so low.
Even with the increase, many will be paying half their income in rent alone.
Experts agree also lifting the rates of JobSeeker and other income support payments is essential to improving rental affordability.
Additional funding for social housing and homelessness is welcome but we need bolder action: Tasmania has the worst rental affordability, the lowest share of social housing, and the most homeless people in recent history. We need a temporary cap on rents, governments to build more social housing, and a curb on tax incentives for property developers.
We welcome bill relief for those struggling to afford their energy bills, but the $300 energy rebate announced for every household is untargeted, helping thousands of Tasmanian households who need it least. Relief measures should be targeted and support those with the greatest need.
One off energy bill relief is unsustainable – what we need to see is long term structural change including through investments in energy efficiency upgrades especially for low income households.
We welcome the commitment to fund the Fair Work Commission’s wage increase for the early childhood education and care workforce, which will help attract workers to an essential industry that needs more workers.”
People trapped in poverty left behind
Brotherhood of St. Laurence (BSL)
“BSL welcomes many of the initiatives in this year’s Federal Budget that provide much-needed support for large parts of the Australian community.
Unfortunately, there is a long way to go until Australia is truly a fair place for all. People trapped in poverty who need the most support will find some relief in this Budget but are still being left behind.
The Budget takes important steps to address immediate cost of living pressures despite the Federal Government navigating a difficult economic and fiscal environment.
Increasing rent assistance, growing early childhood and aged care wages, lifting support for carers, paying superannuation on parental leave, reducing student debts, boosting access to healthcare and reforming the Stage 3 tax cuts will help everyone, especially the people we work with every day at BSL.
While BSL is pleased to see the Government adopt some recommendations from the Economic Inclusion Advisory Committee, we are disappointed no further changes have been announced to the base rates of Jobseeker and its indexation, or to the Activity Test for the Child Care Subsidy.
Although we recognise the need for energy bill relief to ease cost of living pressure, we are surprised the rebate is not means tested. Greater support for low-income households, including for electrification, would have delivered targeted and enduring relief.
BSL is pleased to see the extension of the Saver Plus program – the longest running matched savings program in the world, which helps to grow financial wellbeing. We also welcome continued funding for the Youth Transition Support program, which supports young people from refugee and migrant backgrounds to access education and employment opportunities. We look forward to continuing to deliver these programs with our partners.
The Budget signals substantial reform ahead in employment services, the early years, support for people with disability and accelerates the skills and training agenda for Australia’s future workforce. Over the next twelve months, we encourage the Federal Government to be as brave and ambitious in these areas as they have been with the Future Made in Australia agenda and to set out a clear reform timeframe.
Applying the same pace and scale to social services reform will improve the lives of those experiencing poverty and generate substantial economic and social dividends for all.”
Some gains but also deeply disappointing
Jesuit Social Services
Last night’s Federal Budget 2024/25 makes some modest investments to help marginalised people and communities, and provides some temporary cost-of-living relief for Australian households. However, by failing to make significant increases to the Jobseeker and related income support payments, too many Australians are again limited from living with dignity, says Jesuit Social Services.
“Treasurer Jim Chalmers describes this as ‘a responsible Budget that helps people under pressure today’ and this is welcome – we are in the midst of a cost-of-living crisis and many people are struggling to make ends meet. This is particularly true of many of the people Jesuit Social Services works with who face barriers to social and economic participation,” says Jesuit Social Services Acting CEO Stephen Ward.
“We appreciate that this Budget contains a number of measures aimed to alleviate cost-ofliving pressures, including a $1.9b investment into increasing Commonwealth Rent Assistance payments which will benefit younger people and renters, energy bill relief for every household and the implementation of the stage three tax cuts.”
Housing is a key focus of this year’s Budget, with a doubling of dedicated funding for homelessness services and funding for a new five year National Agreement on Social Housing with states and territories. Additionally, $1b has been allocated from the National Housing Infrastructure Facility to support young people experiencing homelessness as well as women and children escaping violence.
“Too many people, including those on low incomes and with complex needs, find it challenging to access safe, affordable and sustainable housing. While much more is needed to ensure that all Australians have a secure roof over their heads, such as a genuine increase in the supply of public housing, we welcome these measures and the Government’s commitment to addressing the country’s inadequate housing system.”
Jesuit Social Services also welcomes funding for pilot programs to connect job seekers experiencing barriers to work with new opportunities, funding to improve transport and infrastructure in Western Sydney and the first national strategy aiming to achieve gender equality, Working for Women: A Strategy for Gender Equality.
Mr Ward says it is deeply disappointing that the Government has again failed to raise the rate of Jobseeker and related payments to allow recipients to live with dignity.
“The Federal Government’s own Economic Inclusion Advisory Committee recently recommended a significant rise in these payments, finding that lifting the Jobseeker rate to $72 a day would enable people to lead more positive and fulfilling lives, and not having to choose between essential medication and supplies or putting a roof over their heads.”
No new funding for social housing
Everybody’s Home
“The Federal Government has delivered a Budget that will keep pushing up housing costs for Australians who are already battling a brutal housing market.
“There is no new funding for social housing. What the government has announced is a business as usual spend that is nowhere near enough to shift the dial on the housing crisis.
“The government’s ‘new’ funding for social housing is a repackaging of existing initiatives, offering loans instead of providing real funding, and the continuation of a funding agreement with the states and territories — something the Commonwealth routinely renews for other essential services like education and health.
“An increase to Commonwealth Rent Assistance will provide some short-term relief, but it’s not a lasting fix. It isn’t enough to keep up with rising rents, and it doesn’t go to all of the people who need it.
“If the government was serious about tackling this crisis, it would build more social housing to end the massive shortfall. These are the rentals people can actually afford. A target for the private sector will only deliver more of the same – homes that are way too expensive for average people.
“Any Budget that seriously tackles the housing crisis would also stop using unfair tax handouts to prop up landlords and investors, pushing up the cost of housing for everyone else. The Treasurer ruled out making those changes well ahead of Budget day.
“Australia’s housing crisis has never been worse. Fixing it will mean spending real money to build social housing for more renters, and putting people who need homes ahead of investors.
“Housing will be front of mind for many voters when they cast their ballots in a year’s time. The appetite for real change among Australians is here – three in five voters want reform to investor tax handouts and seven in ten want more social housing.
“The government has no more time to waste – it needs to step up and build social housing, not investor profits.”
Bandaid approach to critical social issues
Mission Australia
- Says Federal Budget contains next to no new additional investment to seriously tackle Australia’s homelessness and housing emergency.
- A new $500 million investment in Homelessness Prevention Transformation Fund is needed to complement social and affordable housing commitments and stop the flood of homelessness.
- Welcomes funding to address youth homelessness, calls for Reconnect extension and expansion and more Youth Foyers.
- Dismayed by the Government’s refusal to increase JobSeeker and adequately increase and review rental assistance, which will tip more people into poverty and homelessness.
“While the funding just announced by the Government to address homelessness and increase affordable housing is important, the 2024-25 Federal Budget leans towards relatively small-scale contributions and contains very little new investment to tackle Australia’s homelessness and housing emergency.
“We welcome some of the measures announced, including funding for crisis and transitional accommodation for young people and women and children escaping violence, and some extra investment in social and affordable housing. This will provide hope and security for each individual, family and young person who secures safe accommodation.
“However, while any additional funding is welcome, the Government’s efforts lack the necessary scale to prevent homelessness in the first place, and to provide long-term relief to those without safe, secure and affordable homes. This is like bailing out a sinking boat with a bucket instead of repairing the leak.
“It’s time the Government shifted from crisis solutions to prevention by investing in enough long-term social and affordable homes to meet the shortfall and by funding more homelessness prevention measures to stop the flood of homelessness in Australia.
Read the full media release: https://www.missionaustralia.com.au/media-centre/media-releases/mission-australia-s-response-to-federal-budget-2024-25
Justice matters
Steven Caruana
The Federal Government appears to be continuing its resistance to funding State/Territory National Preventive Mechanisms on any ongoing basis.
It appears however that the Tasmanian and Queensland governments have capitulated and accepted the one-off payment that the previous Government made.
Tasmania has accepted $200,000 and Queensland $900,000. Similar to the ACT Government’s previous acceptance of funds ($140,000), it is likely both governments will have to match Federal Funding as a condition of receiving the Commonwealth money.
It is yet to be seen what this means for the ongoing Federal-State/Territory dispute over OPCAT funding but with QLD accepting the funding, this may mean another NPM designation is just around the corner. (OPCAT = The Optional Protocol to the United Nations Convention against Torture).
The Federal Government has committed an undisclosed amount of funding (including capital funding) over three years to improve security at the Yongah Hill Immigration Detention Centre. This funding comes just weeks after the Australian Human Rights Commission said two of the compounds were no longer fit for purpose in its inspection report.
Choosing surplus over reducing inequality
Australia Institute
Australia is facing some big structural problems, but the 2024 Federal Budget ultimately lacks both priorities and ambition.
Inequality, access to housing and climate change aren’t going to be fixed overnight, but we have to start somewhere – and this budget misses the opportunity to do that.
Budgets are about choices.
This Budget reveals the government has chosen to deliver a budget surplus over serious measures to reduce inequality, and exposes the fact that fossil fuel subsidies are forecast to grow into the future, driven by the fuel tax credit, while revenue from the Petroleum Resource Rent Tax has been revised down.
The redesigned Stage 3 tax cuts, which the Australia Institute worked hard to encourage, provide much fairer cuts for most Australians than under the Morrison-era plan. However, the highest income earners still recieve a tax cut of over $4,500, while at the same time, an increase to JobSeeker is regarded as “unaffordable”.
An increase in Commonwealth Rent Assistance will be helpful for those who receive it, but there are no reforms to the capital gains tax discount and negative gearing, which continue to distort the housing market and cost the budget over $20 billion a year.
As Richard Denniss says, we can afford to do anything we want, but we can’t afford to do everything we want. It’s all about priorities.
Better, but not good enough
Statement by independent MP Andrew Wilkie
“This Government’s budgets have been markedly better than the budgets brought down by their predecessor. They are more compassionate, and we see evidence of that in this budget, with more money for social housing and homelessness services, mental health, energy bill relief and superannuation for paid parental leave. But sadly it falls short of the Labor Budget the Treasurer promised, as it doesn’t meet the moment or adequately support those most in need.
“The Budget was a mixed bag for Tasmania in particular. Yes, any national program that helps the most disadvantaged does have a disproportionate benefit for Tasmania because of our heavy reliance on government support, and in particular income support. However there was little funding specifically for Tasmania and our pressing needs, for instance a refuelling option for RSV Nuyina and the urgent repair of Macquarie Wharf, went unmet.
“But this budget strikes me as having three fundamental flaws. For a start, there’s the budget trick of promising to deliver one of the biggest government programs, the Defence upgrade, way beyond the forward estimates where funding might be likened to an outback mirage. This is reminiscent of the Gillard Government putting much of the NDIS and Gonski funding beyond the reach of its budgets, making it all someone else’s problem.
“The thumping amount of money still to be siphoned to high-income earners also remains a problem. Yes, the Government’s decision to revamp the Stage 3 tax cuts is good. But for the wealthy, including federal politicians, to enjoy an annual tax cut of about four and a half thousand dollars is unconscionable and unaffordable. And although the Government promotes these tax cuts as the centrepiece of their cost of living relief package, the reality is they will be of no benefit whatsoever for those on extremely low incomes or income support. In other words, full aged pensioners, DSP recipients and the unemployed get nothing from the cuts. And yet again we have seen no meaningful increase to government pensions and payments.
“Moreover the Government has failed again today, like just about every other government in recent decades, to fundamentally re-engineer the Budget so it’s sustainable over the long term. Instead it’s kicked the can down the road, seemingly unfazed by the sea of red in the forward estimates. Fingers crossed that a growing economy, tax bracket creep and high commodity prices will save the day. But it’s quite possible they won’t, in which case critical expenditure like health, education, the NDIS, income support payments and the environment will all be increasingly underfunded in coming years. And that would be unforgiveable in a country as rich and fortunate as Australia.”
Lacking the needed systemic reform
Independent MP Kylea Tink
The Albanese Government’s third budget is full of great headlines but misses the opportunity to address at least some of Australia’s most fundamental economic and societal challenges.
Of small sugar hits – there were plenty for almost every interest group. But ultimately almost all of the brave systemic reform we must embrace as a nation simply was not there.
While the Government did deliver a surplus and finally unveiled a plan for how we can rightfully take our place as a renewable energy superpower by opening our doors to the future, there was a disappointing lack of focus on electrification initiatives for households and business.
Australia is crying out for leadership and reform, and ultimately with this budget, the Government has missed the opportunity to address our housing, climate, intergenerational equity, and domestic violence crises.
The $300 energy rebate, which goes to every household whether you earn a million dollars a year or are surviving on JobSeeker makes for a great headline. But the truth is this $3.5 billion could have been better targeted or redirected towards supporting households to access cleaner, cheaper energy by finally getting the solar or batteries they need to no longer be reliant on expensive fossil fuel energy.
Substantial reform to Australia’s taxation regime, which is still overly reliant on personal income tax despite the revised stage 3 tax cuts, has been kicked down the road while the Petroleum Resource Rent Tax continues to generate less revenue than the beer excise. Meanwhile $44 billion of taxpayer funds will be spent on fossil fuel subsidies over the forward estimates.
The budget offers almost nothing for the environment, including much needed nature law reform and our threatened species. The establishment of the Environment Protection Australia and Environment Information Australia is welcome but remains underfunded.
When it comes to domestic violence, there is little more than what has already been announced. The scale of the crisis seems lost on this Government. Economic security for women has been improved slightly with the overdue decision to fund superannuation payments on Paid Parental Leave. However, childcare is still not as accessible as it should be with the Government’s refusal to abolish the Activity Test bitterly disappointing.
Changes to the indexation of HECS debt, a direct result of crossbench advocacy, are also welcome, as is the announcement of the Commonwealth Prac Payment for student placements in certain areas. However, both of these announcements barely touch the sides and there is much more work to be done if younger Australians are to be offered any hope of fairer access to more affordable housing.
Ultimately, the Albanese Government appears to have delivered a budget that provides the Prime Minister with the option of an early election rather than tackling the long-term reform our nation desperately needs.
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