Labor scrambles to minimise charity funding cut fallout

When faced with damaging headlines revealing funding cuts by faceless bureaucrats to multiple health-related charity organisations, the Albanese government moved with lightning speed to ride to the rescue and reverse the embarrassing decisions.

The scramble began when news broke that 37-year-old counselling support charity Griefline faced closure after having its funding slashed, a decision that was quickly reversed by Health Minister Mark Butler after the organisation's plight was raised by Liberal Senator Hollie Hughes in a Senate Estimates hearing.

The Daily Telegraph then broke the story that child loss charity Red Nose would have to shut its support helpline after it was denied $6 million in funding.

The revelations prompted a personal intervention by Prime Minister Anthony Albanese, who reversed the decision, which he described on radio as a mistake by the Health Department.

By the weekend Labor was on the back foot yet again, as it frantically moved to restore more than $300 million in funding earmarked to be slashed from the budgets of 13 health-related charities, within hours of fielding media inquiries on the issue.

Many of the initiatives to be cut were reportedly related to mental health issues, including post-natal depression, the loss of loved ones to suicide, and support for young parents.

The affected charities included the Black Dog Institute, Headspace, SANE Australia, and suicide prevention organisation Roses in the Ocean.

The government has blamed the decisions to slash funding to the various charities as “bureaucratic errors” committed as part of an overhaul of the grants funding process.

Opposition Charities spokesman Senator Dean Smith was unimpressed.

"Regardless of who the Albanese Government tries to blame for its shortsighted initial decision to refuse funding to Griefline and Red Nose, the difficulties it has caused these organisations confirms its disregard for the charities sector and the Australians it supports," he said.

Senator Smith said that charities and not for profits across the board had faced surging demand during the cost-of-living crisis and Griefline was no exception, recording a 112 percent increase in demand over the past financial year.

"Instead of creating a stable environment where charities can operate with certainty and confidence, the Albanese Government leaves them fearing for their futures," he said.

"Labor’s charities record speaks for itself: three years of delays and broken promises. It’s time the sector has a government that takes it seriously."

The funding win for the charity sector was welcomed by Community Council for Australia CEO David Crosbie.

“It's always good to see a deserving charity receiving a funding boost, and using the upcoming election to push the case for increased funding makes sense,” he said.

Crosbie said he doubted there was any danger in being seen as politically partisan or acting inappropriately if a charity pushed for additional funding during an election campaign.

“[However], there's always a question about sustainability and whether a one-off rescue package is really beneficial, particularly if underlying sustainability issues are not being addressed.

“I would certainly encourage charities to advocate for their causes and themselves over the coming weeks.”

Crosbie said seeking strategic investment to improve effectiveness and capacity to make a difference should be the goal.

“This will be much more beneficial than obtaining a short-term one-off cash injection in return for offering up an 'announceable' during an election campaign.”