Budget brings some relief for struggling Australians

Federal Treasurer Jim Chalmers responded to vocal calls from sector organisations to address pressing issues ranging from homelessness and housing affordability to the cost of electricity, soaring rents and student debt.

“Our main priorities are helping with the cost of living and building more homes for Australians,” Dr Chalmers said, while delivering a budget with a $9.3 billion surplus.

Some organisations were left disappointed, however, that the government did not go far enough to help disadvantaged and struggling Australians.

Initiatives aimed at helping those doing it tough revealed in last night’s Budget included:

• a $300 power bill rebate for more than 10 million households
• $1.9 billion over five years to increase Commonwealth Rent Assistance by 10%
• Tax cuts for 13.6 million Australians aimed at relieving cost-of-living pressures
• a $3 billion reduction in student debt for three million Australians
• more than $925.2 million over five years to support women fleeing domestic violence
• $2.2 billion for aged care reforms.

The government also confirmed it would invest an additional $6.2 billion in new housing initiatives.

The reaction from sector organisations was mixed.

• Mission Australia

• Anglicare Australia

• National Shelter

• Brotherhood of St Laurence

• ACOSS

• No to Violence

• The Smith Family

• Volunteering Australia

• Social Enterprise Australia

• Settlement Services Australia

• Aboriginal and Torres Strait Islanders

• Australian Conservation Foundation

• Uniting Care

• National Seniors Australia

• Homelessness Australia

• Mental Health Australia

The Antipoverty Centre went on the attack even before the Budget was released, slamming Canberra for crowing about a projected $9.6 billion Budget surplus while rejecting pleas to increase payments such as JobSeeker for those in desperate need.

Antipoverty Centre spokesperson and disability support pension recipient Kristin O’Connell described the Albanese government as “morally bankrupt” and more obsessed with numbers on a spreadsheet than caring for those who are least able to weather the devastating cost-of-living crisis.

She said there was no such thing as a “responsible Budget” that leaves people in poverty.

“People in poverty are not the ones fuelling inflation, and helping us would not hurt the economy,” she said.

Mission Australia

Mission Australia said it was dismayed by the government’s decision not to substantially increase the JobSeeker payment and adequately increase and review rental assistance, which will tip more people into poverty and homelessness.

Mission Australia’s executive, Ben Carblis, said that while cost-of-living measures announced in the Budget, including energy bill relief and a modest 10% increase to rental subsidies, were a welcome acknowledgement that people are facing tough times, they won’t fix poverty or poverty-induced homelessness.

“Those who rely on the government’s inadequate income support payments are living below the poverty line, when really, income support should be a safety net that stops people living in poverty.

“The Government is essentially condemning people and families to an ongoing struggle to make ends meet and keep a roof over their head.”

Mr Carblis acknowledged the extra funding to address homelessness and increase affordable housing but said the budget leaned towards relatively small-scale contributions and contained few new investments 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.

“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.”

Anglicare

Anglicare Australia summed up the federal Budget as being “a little bit for everyone but not enough for those who need it most.”

Anglicare Australia executive director Kasy Chambers said the Budget outlined important steps on tax fairness, aged care and cost of living, but an increase to JobSeeker remains unfinished business.

“Living costs are still spiralling, and housing is more expensive than ever,” said Ms Chambers.

“That’s why Anglicare Australia has been calling for years on the government to raise the rate of Centrelink payments above the poverty line. The payment has been too low for too long, trapping people in poverty instead of helping them escape it.”

Ms Chambers described the boost to rental assistance as only a band-aid solution that won’t have the same impact.

“Just two weeks ago, our Rental Affordability Snapshot found that a person on JobSeeker could only afford three rentals out of 45,000 listings. That was with the highest rate of rent assistance. Tonight’s increase adds just three additional rentals across the entire country.

“Only an increase to the base rate of Centrelink payments can really help people doing it the toughest. This is major unfinished business from the Budget.”

National Shelter

The peak body representing the housing interests of low-income Australians praised the government for investing in measures to increase housing supply but lamented a lack of bold and ambitious housing reform.

National Shelter CEO Emma Greenhalgh said the Albanese government had made significant investment towards solving the housing crisis since coming to office.

She said this year’s Budget built on that investment with 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,” said Ms Greenhalgh.

“The additional measures to support community housing providers and Housing Australia are welcome to expand their capacity to respond to the housing crisis.”

Ms Greenhalgh also welcomed new Budget measures including increased rental assistance, financial relief from soaring energy bills and a doubling of funding for homelessness services.

“We would have liked to have seen this Budget go further with 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.

“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.”

Brotherhood of St Laurence

Brotherhood of St Laurence executive director Travis McLeod said initiatives contained in the federal Budget provided important relief for struggling Australians, but that more needed to be done to reduce poverty.

“Unfortunately, there is a long way to go until Australia is truly a fair place for all,” said Mr McLeod.

“People trapped in poverty who need the most support will find some relief in this Budget but are still being left behind.”

Mr McLeod said the Budget took important steps to address immediate cost-of-living pressures despite the federal Government navigating a difficult economic and fiscal environment.

These include increasing rent assistance, increasing 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.

BSL expressed disappointment, however, that the Budget contained no increase to the base rate of Jobseeker and its indexation, or to the activity test for the childcare 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,” said Mr McLeod.

“Greater support for low-income households, including for electrification, would have delivered targeted and enduring relief.”

Australian Council of Social Service

ACOSS described the document tabled in federal parliament by Treasurer Jim Chalmers as a “budget that has a hole in its heart.”

The peak body for the community services sector said that while the government had correctly identified the set of problems faced by Australia – a slowing economy, rising unemployment, falling spending power, a housing crisis and a climate emergency – the Budget failed to deliver the solutions the nation needs.

“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,” ACOSS said in a statement.

“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.”

ACOSS said the $300 energy rebate would be the only cash support the majority of people on JobSeeker and Youth Allowance would receive and that extending it to everyone – regardless of income – was “extraordinarily wasteful”.

“It does not target support to people most in need.”

ACOSS did praise some Budget initiatives, including investments in Services Australia, the Remote Jobs Program, increased rental assistance, more investment in services such as homelessness, family violence prevention and emergency relief, and more cash for carers.

The organisation also welcomed additional funding for homelessness services and community housing but said the government had failed to take bold action to address the housing crisis, with many Australians remaining without a 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.”

No to Violence

No to Violence, the peak body for organisations working to end men’s use of family violence, welcomed the Budget’s focus on measures to address the issue

NTV CEO Phillip Ripper said while the Budget took important steps – such as the $3.9 million in resourcing to support whole-of-government coordination efforts through the Office for Women – these needed to be integrated under a broader strategy, rather than a fragmented approach.

“A number of new initiatives did highlight to the need to end men’s use of violence, but we need these to be co-ordinated to ensure maximum impact,” he said.

“We were disappointed by the lack of investment in front line services working with men to change their behaviour.”

Mr Ripper called for the development of a National Perpetration Strategy to ensure a coordinated national approach to ending male family violence.

The Smith Family

National education charity The Smith Family welcomed the Budget’s focus on equity in tertiary education and funding reforms designed to create more opportunities for students.

The Smith Family CEO Doug Taylor said that with an estimated nine out of ten new jobs in the next decade requiring a post-school qualification, the measures announced in Canberra would ensure that more students move from secondary school into post-school training and study.

These included funding for 20,000 new fee-free TAFE places and $350 million to prepare students for university and to support them to complete their courses.

“Through our work on the ground with students experiencing disadvantage, we see the difficulty they face in making that all-important transition into tertiary education,” said Mr Taylor.

He said the reforms announced in the Budget would remove barriers for students in three ways:

• helping more young people transition to university or TAFE
• supporting them while they were studying via the Prac Payment for student placements
• easing the burden of their student debt after study.

Mr Taylor also welcomed Budget initiatives designed to relieve cost-of-living pressures, particularly rent assistance and energy bill rebates.

“These are particularly important for the families we support and will help to alleviate some of the significant financial stress they experience.

“We know that families we work with are making impossible decisions every day about how to spend limited funds. Easing the burden for these families will make it easier for them to support the education of their children,” said Mr Taylor.

Volunteering Australia

Volunteering Australia CEO Mark Pearce welcomed Federal Budget measures to address cost-of-living pressures but said the nations army of volunteers remained under intense pressure.

He said cost of living pressures increase operating costs and demand for services while simultaneously reducing people’s capacity to volunteer, meaning greater support for Australia’s not-for-profit sector is needed.

“The work that volunteers do is not a ‘nice to have’; it is essential work that supports our schools and hospitals, our aged care and disability services, and our ability to support members of the community when in crisis,” said Mr Pearce.

“As the National Strategy for Volunteering shows, it requires deliberate and ongoing strategic investment underpinned by adequate resourcing. We cannot afford to ignore the impact that the cost-of-living crisis is having on volunteering.”

Mr Pearce said volunteers are central to key government priorities identified in the Budget, including the environment, aged care, disability, domestic and gender-based violence, and cost of living.

He said while volunteering is mentioned throughout the Budget, it lacks a strategic, whole-of-government approach to resourcing and supporting volunteering in Australia – an approach vital to ensure a thriving volunteering ecosystem that’s essential to addressing these priorities.

Mr Pearce applauded some volunteering specific measures in the Budget, including funding for the Australian Bureau of Statistics to deliver an enhanced annual General Social Survey, which has previously collected key national data on volunteering.

"Securing funding for the enhanced annual General Social Survey underscores the critical importance of comprehensive data on volunteering. This investment is essential for driving forward the National Strategy for Volunteering, ensuring we have the insights necessary to empower and strengthen volunteering across Australia in the years ahead."

Social Enterprise Australia

The 2024 Federal Budget is a big with for the social enterprise sector most and people most disadvantaged in the labour market according to Social Enterprise Australia CEO Jess Moore.

Ms Moore specifically called out the $54 million allocated for paid employment pathways, which includes:

• $21.9 million for the WorkFoundations program, to fund social enterprises and other businesses that assist people with complex barriers to work and pay real wages and includes funding for jobs-focused social enterprises to get certified
• The $32.1 million Real Jobs, Real Wages program, designed to support jobseekers experiencing long-term unemployment to build their capabilities by providing a tapered subsidy to employers that can provide secure and supportive job opportunities.

“WorkFoundations specifically recognises the role jobs-focused social enterprises play in providing employment for people most shut out of work and provides the opportunity for social enterprises to show that they should be part of Australia’s employment system,” said Ms Moore.

Ms Moore said the Budget commitments were in addition to existing investments in the social enterprise sector, which include the Outcomes Fund and the Social Enterprise Development Initiative.

“We're so pleased to see the government's ongoing and growing commitment to unlock social enterprise contribution.”

Settlement Services Australia

Australia’s peak body for migrant services praised the Federal Budget for delivering support for families fleeing the crisis in Gaza.

Settlement Services Australia (SSI) said a $900 million cash injection to extend Medicare eligibility to 30 June 2025 for Bridging Visa E holders arriving from affected areas of Israel and Palestine.

SSI CEO Violet Roumeliotis said the initiative would be welcome news for families who had escaped the crisis in Gaza only to arrive in Australia and find themselves largely reliant on charities.

“The situation in Gaza has worsened and worsened. With no hope of return, families are now navigating the process of applying for asylum in Australia, but in the meantime, their visa types mean they are mostly unable to work and ineligible for government support,” said Ms Roumeliotis.

“At a time of rising costs of living, this has translated to families sleeping in cars, or living with 14 people in two-bedroom apartments.”

Ms Roumeliotis said it was encouraging to see broader measures to support people who are building new lives in Australia, such as a $120.9 million investment to strengthen the settlement sector and enhance outcomes for refugees and migrants.

“Robust on-arrival and settlement support is critical to ensuring newcomers are positioned to realise their full potential in Australia. It was welcome to see measures to this effect, including a modest increase in funding for some of the core settlement programs that support these outcomes.”

Ms Roumeliotis said SSI welcomed a number of other budget measures designed to improve access and equity in Australia, including:

• $27 million over three years to extend targeted support for Youth Transition Support services, which assist refugee and migrant youth to access education, employment and government services.
• $253.6 million over five years to reform employment services and supports for people with disability.
• $468.7 million over five years to support people with disability and get the NDIS back on track.
• $925.2 million over five years to improve financial support, safety assessments and referrals to support services for victim-survivors leaving a violent intimate partner relationship.

Aboriginal and Torres Strait Islanders

Coalition of Peaks acting lead convenor, Catherine Liddle welcomed the focus on addressing the cost-of-living crisis, which she said had severely impacted Aboriginal and Torres Strait Islander people.

“Our mob are feeling the cost-of-living crisis acutely, and this budget's investments in housing, education and health will be good for our People, but more will be needed to bridge the widening gap,” she said.

Ms Liddle said the gap can’t be closed however unless governments change the way they work with Aboriginal and Torres Strait Islander people.

“We need genuine partnerships, not tick-a-box consultation.

“We need funding for Aboriginal community-controlled organisations, because they know how best to deliver services to their communities and get results.”

Australian Conservation Foundation

The Budget drew a mixed reaction from one of Australia’s peak environmental groups.

Australian Conservation Foundation CEO, Kelly O’Shanassy said while significant funding was allocated to help build a renewable-powered Australia, the government has continued to give cash to companies that are fuelling the climate crisis, while funding for nature protection remains inadequate.

"There are two sides to this budget coin," said Ms O’Shanassy.

"On one side the budget allocates significant funding to the ambitious Future Made in Australia plan which, if well-executed, will help build a manufacturing and export industry powered by clean renewable energy. This is crucial to solving the climate crisis.”

Ms O’Shanassy said on the other side of the budget coin however, serious public money is still flowing to coal and gas, especially via the Fuel Tax Credit scheme and through funding for carbon capture and storage - technology designed to extend the use-by date of climate-damaging fossil fuels.

“It makes sense to fund the industries that help us solve climate change, not the industries that got us into this mess,” said Ms O’Shanassy.

“Propping up fossil fuel industries with public money is bad for the climate and isn’t doing anything to relieve cost of living pressures for Australians either.”

The ACF welcomed several specific environmentally focussed Budget initiatives, including:

• establishment of the Environment Protection Australia and Environment Information Australia
• a crackdown on illegal land clearing
• more funding to accelerate renewable energy approvals and map threatened species habitat
• $20 million to improve engagement with communities involved in the energy transition to combat misinformation and disinformation.

Uniting Care

Uniting Care Australia welcomed initiatives in the Federal Budget it said would improve safety, support and wellbeing for millions of Australians.

"Ahead of the budget we called on the Government to prioritise policies that improve the wellbeing of those who need it most,” said UnitingCare Australia National Director, Claerwen Little.

“We called for action to keep women safe from violence; urgent funding for care and social services; and continued support for older Australians.

"Across all our services we see people reaching for support more than they ever have before, and people reaching for support who never have before.

“We welcome the measures that will make a difference to thousands of individuals and families across the country.”

Ms Little said extra investment in community services, including emergency and food relief and financial counselling, would make a real difference to the people they support every day.

“Whilst the increase in Commonwealth Rent Assistance and $300 energy supplement will go some way to providing help, those on income support payments are still held back.

Ms Little praised the government’s decision to fund a pay rise for aged care workers, a move which recognised the important role they play in caring for older Australians.

The organisation also welcomed the 24,000 homecare packages announced in the Budget but remained “deeply concerned” for the 50,000 Australians still waiting.

“More work is needed to ensure every older Australian can access the care they need, when they need it,” said Ms Little.

“Aged care reform is unfinished business, and we call on the Government to introduce the new Aged Care Bill to Parliament as soon as possible. Our services are struggling without certainty and need a clear way forward.”

National Seniors Australia

The peak body for seniors said the Budget had delivered a trifecta of key initiatives designed to help older Australians struggling amid the cost-of-living crisis:

• the $300 energy bill relief payment
• a 10% increase to Commonwealth Rent Assistance
• a freeze on deeming rates for a further 12 months.

National Seniors Australia (NSA) CEO Chris Grice said he was pleased the government had listened and responded to the needs of older Australians, particularly those in hardship.

“NSA continually hears from older Australians struggling to pay necessities including utilities, petrol, transport, groceries, and rent.

“Tonight’s budget will help to make paying the power, paying the rent and managing the budget just that little bit easier.”

Mr Grice said the increase in the Commonwealth Rent Assistance will help more than 534,000 people aged 50 and over, with a single renter receiving the maximum payment receiving an extra $18.82 per fortnight - almost $500 a year.

“Overall, NSA congratulates the government on delivering a budget that goes some way to provide cost-of-living relief for both older and younger Australians.”

Homelessness Australia

Homelessness Australia gave the federal Budget a mixed scorecard, praising some relief measures but lamenting the lack of a plan to make significant inroads into growing homelessness.

Homelessness Australia CEO Kate Colvin welcomed the increase in Commonwealth Rent Assistance, a move she said would soften the impact of forecast rent rises in 2024.

She said the $5000 leaving violence payment was also an important improvement, as was the allocation of the previously committed $1 billion in funds in the National Housing Infrastructure Facility to create housing for homeless young people and women and children fleeing violence.

However, HA lamented the government’s failure to properly lift income support which would expose more people to the threat of homelessness.

Homelessness Australia were among more than 40 sector organisations, including Mission Australia, Sacred Heart Mission and the Salvation Army who signed a letter to Prime Minister Anthony Albanese in the run up to the Budget, urging Canberra to increase Jobseeker, Youth Allowance and Commonwealth Rent Assistance.

Australia will continue to have a significant homelessness problem due to the scale of the housing crisis and the flood of need from victim survivors fleeing violence.”

Ms Colvin said while the Albanese Government’s scale of overall social housing commitments stood in stark contrast to the previous Government’s cuts to affordable housing programs, a bolder housing investment vision is needed to address the huge and growing shortfall in availability of low-cost rentals.

“The income support and housing measures in this Budget will make an important dent in our crisis, however they will not resolve it,” said Ms Colvin.

Mental Health Australia

Australia’s peak mental health body said it was disappointed that the national outcry for more mental health support was not fully funded in the federal Budget.

Mental Health Australia CEO Carolyn Nikoloski said her organisation had consistently advocated for mental health reform to be prioritised.

“Australia needs urgent mental health reform to address the crisis we’re facing,” she said.

However, Ms Nikoloski questioned why the level of investment was not matched by the level of need in the Budget.

This is despite Prime Minister Anthony Albanese’s comments in the wake of the Bondi stabbing massacre that “We can always do better when it comes to mental health.”

While Canberra could have done more, Ms Nikoloski welcomed some initiatives, including:

• an overall $361 million investment in mental health
• funding to increase the clinical capacity of Medicare Mental Health Centres
• cash for Primary Health Networks to deliver increased wrap-around care for people with complex support needs

Mental Health Australia also campaigned for the establishment of a national low-intensity digital mental health service, something Ms Nikiloski said she was pleased to see included in the Budget.

“This is an important investment that will enable more people to get support for their mental health early and free of charge – before their problems snowball.”

While welcoming some gains in the Budget, Ms Nokiloski said the investments were “broad, not deep.

“We need to move beyond a piecemeal approach when it comes to funding mental health, and make sure we have the foundations in place to deliver on long-term reforms that will change the trajectory of mental health in Australia.”