2022 federal budget round-up

The social sector reveals what it wants most from tomorrow’s federal budget and the early promises already worth celebrating.

With the Albanese government set to hand down its first federal budget Tuesday evening, the for-purpose sector is creating noise on a range of key issues facing Australian communities.

In addition to the budget asks Pro Bono profiled last week, new calls have been issued today, including a raft of recommendations from ACOSS,  covering everything from unemployment to housing and climate action, while National Shelter is arguing to create a “wellbeing budget” that shifts our focus away from economic policy. 

A coalition of some of Australia’s most prominent faith-based charities have co-written an open letter urging the government to scrap its planned tax cuts, and Save the Children want to see key international and domestic aid interventions.

There have also been several leaks of budget inclusions, including $560 million over four years dedicated to helping community services; an additional $588 million in 2022-23 to ensure Services Australia supports Australians during emergencies including natural disasters; and early education and care reforms to increase women’s participation in the workforce.

See more: 2022 federal budget preview

Budget recommendations

ACOSS

To reduce poverty and inequality while managing the economy responsibly, ACOSS is recommending eight budget priorities. This includes:

1. Adopting a wellbeing framework with a core focus on reducing poverty.
2. Committing to reach and sustain full employment, including investing in a flexible jobs and training offer for people unemployed long-term. 
3. Lifting income supports to at least $73 a day, including JobSeeker, Youth Allowance and Parenting Payment and delivering an increase in the budget to address the severe crisis facing people on these income support payments.
4. Investing in quality community services for people in need by applying an immediate 5.5 per cent indexation for community sector organisation government grants to ensure they can afford to deliver the critical services for those most in need whilst paying their staff fairly.
5. Investing in housing that is secure and affordable for all by constructing 25,000 new social and affordable housing dwellings per annum and lifting Commonwealth Rent Assistance by 50 per cent.
6. Taking fair, fast and inclusive climate action by providing emergency debt relief to people in energy hardship and investing in energy efficiency and solar retrofits for low-income homes.
7. Building thriving, climate resilient communities, through the increase of the Australian Government Disaster Recovery Payment from $1,000 to $3,000, and from $400 per child to $1,000 per child and the amount and duration of Disaster Recovery Allowance to $73 a day, indexed to wages.
8. Raising the revenue to deliver what’s needed, by reversing the stage three tax cuts costing at least $18 billion a year, followed by implementing major tax reforms.

ACOSS CEO Cassandra Goldie said in a statement that “as one of the wealthiest nations in the world, the government can and should raise the revenue needed to meet the challenges people are facing”.

“First steps include ensuring people have enough income to cover the basics, secure housing and that community services can provide the essential care when people need it most,” she said.

FAITH-BASED CHARITIES

In an open letter, leaders of major-faith based charities including Anglicare Australia, Baptist Care Australia, Catholic Social Services Australia, the St Vincent Paul Society National Council of Australia and UnitingCare Australia, have called for the government to scrap its planned tax cuts.

The partnership argues that “poverty in Australia is a policy choice” and the impact of the planned stage three tax cuts will “worsen inequality, making our tax system less progressive and more unfair”.

“As organisations that speak for the nation’s most disadvantaged people, we are disappointed that the opportunity to tackle poverty has been overlooked in favour of costly and unfair tax cuts,” read the letter.

“We urge you not to proceed with the planned tax cuts in the October Budget. Instead, we hope to work with you towards a fairer and more equal Australia.”

NATIONAL SHELTER

The national housing peak body is joining sector colleagues to call for the government to hand down a ‘wellbeing budget’, which shifts the focus from economic outcomes to measuring progress in ways that gauge the social value of policy and its direct impact on people’s equality and prosperity.

According to research by 89 Degrees East, 69 per cent of Australians are supportive of a wellbeing budget. In a statement, National Shelter said it anticipates the budget “will include provisions for the government’s election commitments including the Housing Australia Future Fund, the Help to Buy shared equity scheme, and Housing Australia”.

SAVE THE CHILDREN

Prioritising children’s wellbeing, recovery and resilience in the face of COVID-19, conflict and the climate crisis has informed Save the Children’s federal budget recommendations. 

The organisation’s key international asks include:

• Investing $70.1 million over three years to establish pilot child benefit payments, child disability benefit payments, and adult disability benefit payments in the Pacific.
• Investing $58.09 million over three years in ending violence against children in the Pacific.
• Increasing Australia’s climate finance commitment to $3 billion over 2020-2025 and commit an additional $400 million to the Green Climate Fund by 2023. 
• Increasing Australia’s humanitarian funding allocation to at least $1.5 billion in response to increased and intensified need, and more complex emergencies.
• Committing an additional $250 million to the COVAX Advanced Market Commitment Facility, alongside an additional $100 million for the Coalition for Epidemic Preparedness Innovations replenishment.

The organisation’s key domestic asks include:

• $25.69 million over four years to support children’s wellbeing, recovery and resilience building.
• Contributing $13.7 million over four years to engage children at risk of disengaging from school.
• Allocating $24.15 million over four years to build service capacity for early detection and response to children with trauma, particularly child victims of domestic and family violence.
• $40 million investment over four years to shift disadvantage, reinvigorate community and early learning through targeted interventions with payment by outcome capabilities.
• Supporting all families to provide the material basics for all children.

Save the Children CEO Mat Tinkler said in a statement that “this is truly a time of crisis for children”.

“Not seriously investing in the safety, resilience and development of Australia’s children is to not invest in the future of our country as a whole. We implore the new Federal Government to dig deep and do the right thing for our kids, who have both so much to lose and so much to gain.”

Early budget wins

Increased support for community services 

ACOSS

Australia’s peak body representing community services warmly welcomed the federal government budget commitment to provide $560 million over four years to help the sector.

The funding will be allocated to relevant departments including the Department of Social Services and the National Indigenous Australians Agency to pass on to various service providers.

ACOSS CEO Cassandra Goldie said in a statement that the commitment awards “a lifeline” to community services that have been “chronically under-funded”.

“The surge in demand from the community in recent years, combined with escalating inflation and wage pressures, have pushed the sector to breaking point.

“This latest commitment from the Federal Government is a great response for our sector and a welcomed first step in strengthening its financial viability, ensuring that community organisations across the country can continue helping people who are struggling.”

AUSTRALIAN SERVICES UNION

In a “first big step towards restoring respect to frontline community services workers”, the trade union has also welcomed the government’s commitment to a $560 million funding boost to community services around the country.

ASU’s assistant national secretary Emeline Gaske said in a statement that the move “gives the sector room to breathe”.

“The past few months show what is possible when the community’s concerns are matched with a government that actually cares about workers and our most vulnerable.

“This is the first time in over a decade that community workers feel listened to by their Federal Government. It is a huge win for community services workers who have worked through their unions towards this outcome for a long time.”

Increased support for families

The Albanese government has also committed to changes to the Paid Parental Leave Scheme and Child Care Subsidy “through a budget that is focused on supporting women’s workforce participation and implementing responsible cost of living measures.”

The press release announcing the reforms revealed that changes to the Paid Parental Leave Scheme include “an easier claiming process that allows either parent to be the primary claimant; parents being able to take weeks of leave at the same time; and better access to paid leave for parents whose partners’ don’t meet residency requirements.

“Eligibility will be expanded through the introduction of a $350,000 family income test, which families can be assessed under if they don’t meet the individual income test.

“The Government will also invest $12.4 million to promote Playgroups and Toy Libraries, as part of its election promise to provide educational support to families who may not access formalised care.”

Minister for early education and youth Anne Aly wrote in the press release that “early childhood education and care plays a vital role in supporting families and improves the education and health outcomes of our children.

“Access to early childhood education means improved economic security for women where families can make the choices around workforce participation and early childhood education that work for them.”

Increased support for emergency preparedness

Minister for government services Bill Shorten announced in a press release today that “the Albanese government will provide an additional $588 million in 2022-23, to ensure Services Australia supports Australians during emergencies, particularly when impacted by natural disasters.”

Shorten said the funding will help the country better prepare for the summer. 

“Bitter experience of the last three years of natural disasters shows it is smarter and more economical to pre-position a ready-to-go workforce ahead of disasters, rather than the more expensive ad hoc reaction of assembling a workforce from scratch after the disaster has occurred,” he wrote in the release.

According to the press release, “Labor’s plan includes $415.7 million in extra support to Services Australia to support its work in emergency response between 1 July 2022 and 31 January 2023.

“The 2,600 additional staff will support Australians with securing payments and support during disasters, including the current floods in South East Australia, as well as the Pandemic Leave Disaster Payment and High-Risk Setting Pandemic Payment.

“Services Australia will also receive $60.4 million in 2022-23 to continue an emergency response capability of 850 personnel from 1 February 2023 to 30 June 2023, which will enable the agency to rapidly and efficiently respond to natural disasters in up to 20 local government areas.

“This will help to support Services Australia in quickly responding to emergencies and natural disasters.

“The government is also providing $33.8 million for an additional 600 personnel from 1 February 2023 to 30 June 2023 to support activity relating to the lifting of debt pauses and pre-and-post checks for the Agency’s payments.

“The Labor government will also provide $78.5m in 2022-23 related to the step-up in technology and digital services costs, to enable digital customer services to all Australians, wherever and whenever they need it.”