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Budget 2019: Priorities wrong as inequality overlooked, says ACTCOSS

Ian Bushnell 3 April 2019
Inequality overlooked in new budget, says ACTCOSS.

Inequality overlooked in new budget, says ACTCOSS.

The ACT Council of Social Service has expressed disappointment that the Federal Budget has failed to reduce severe poverty and close the worst gaps in essential services, while welcoming some investments and supports.

 According to ACTCOSS Director Susan Helyar, “[Last night]’s Budget promises the first Surplus in 12 years and billions in high-end tax cuts. But the more than ten thousand Canberrans on Newstart, Youth and other Allowances have waited 25 years and still the Budget hasn’t responded to their cost of living pressures.”  

She said a supplement of between $75-125 to be paid to people on a whole range of pensions and family support payments to cope with energy bills was not given to people on Newstart or Youth Allowance or Sickness Allowance.

“There is no action on energy efficiency upgrades to rental housing so people could actually reduce their energy bills in Canberra’s climate extremes,” she said.  

Ms Helyar said emergency assistance charities on whom many people on inadequate allowances rely, stood to lose $5.7 million a year from 2020. 

“A forum held by ACTCOSS last year heard from people forced into the most basic compromises in their lives by inadequate incomes and support – people young and old are forced to choose between bad options like cash-in-hand work or continuing with their studies, buying nappies or putting petrol in their car, eating three meals a day or keeping their essential data plan going. You cannot ‘have a go’ in circumstances like these,” she said. 

Ms Helyar said that while the Government had highlighted tax cuts as the number one priority for economic growth and financial security for households, the community had clearly said they would forgo tax cuts for reliable services that would back them up when they faced difficult circumstances. 

She said extra funding for carers, mental health, domestic violence, community housing, community legal services, aged care, education, training and Pharmaceutical Benefits Scheme would be welcomed by people in Canberra but the resources provided were only enabling catch up with growth in demand, with Canberra having some of the fastest growing suburbs in Australia.

“The funding for aged care and disability Royal Commissions are welcome. However, there is no additional funding for financial counselling despite that being a recommendation of the Royal Commission into banking and financial services, and despite significant waiting times for Canberrans to access these vital services,” she said.

Investments in Closing the Gap for Aboriginal and Torres Strait Islander people were inadequate. 

“We are in perpetual catch up.  Even when Government makes positive investments the lag between growth in demand and growth in resources means the new investments never fully meet community need. This puts pressure back on the ACT Government to fill gaps,” Ms Helyar said. 

“The NDIS shows that even with money in place the Commonwealth cannot get it out it in a timely way.  In a case of throwing good money after bad, the Government is continuing to automate welfare payments despite the ‘robo-debt’ scandal showing that automation is a poor substitute for proper oversight and careful consideration of individual circumstances.  

“The surplus is expected to be $45 billion and revenue reduction is $158 billion – on these figures we will continue to see inequality increase and be playing catch up in the service system for a very long time.”  

For a break-down of how the Federal Budget will affect Canberra, read our analysis here


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