What does the Federal Budget Mean for us??
Following is a summary of the 2014-2015 federal budget and how it affects our sector. Analysis of
the budget shows that it disproportionately affects low income families, with figures indicating that
they could lose up to 15% of their disposable income. Whilst we are not economists, we do feel that
the governments priorities should be to reign in wasteful spending, spread the cuts evenly across the
board and support those who need assistance. Reports are showing that the gap between the rich
and the poor in Australia is widening and this budget will accelerate that trend.
Following we have summarised the measures in the budget most affecting our network. Attached is
a letter you may wish to adapt and send to Federal MP’s, Senators and anyone you want to hear
what we have to say. We will also be writing to Federal MP’s and Senators and requesting meetings.
If you would be interested in being part of these meetings, please let us know.
You can find a more detailed analysis of the budget at on the ACOSS website www.acoss.org.au
Welfare
This budget seriously weakens Australia’s income support safety net by for low income families,
young people and pensioners. Measures include:

Denying access to unemployment benefits for young people for 6 months of every calendar
year that that they are not in paid employment, unless exempt. Exemptions include: partial
work capacity, apprentices, disadvantaged job seekers in streams 3 or 4, main carer of a
child, in fulltime education, training or disability employment services. Those with an
employment history have access to more payments on top of the six months (one year post
education employment = one month’s extra payments per calendar year)

Young unemployed people aged up to 29 years must participate in 25 hours Work for the
Dole for the 6 months they receive payments. No indication of support services to
implement this in the community.

Young people aged 23-24 will be transferred from the Newstart Allowance to the lower
youth allowance, a drop of $48 per week.

Non-payment penalties for those who refuse employment or fail to turn up to interviews
applied more widely, possibly extending the 6 month waiting period up to a limit of 8
months.

People under the age of 35 with a disability will be reassessed for the DSP, under stricter
rules, and may be moved to the lower Newstart or Youth Allowance – a loss of around $166
per week.

Funding for Youth Connections and related youth employment programs ceased.

$10,000 wage subsidy for over 50’s if they are employed for 2 years (Note: this is tied to age
and does not assist the long term unemployed re-entering the workforce)

Parenting payment single, FTB, DSP and Carer payments frozen at current rates for three
years, eroding the value of payments over the next few years.

Removal of Federal funding of state pensioner concessions – removing 10% of the State
Government’s concession payments, which had typically been focused on providing energy
and public transport concessions.

Tightening of income eligibility for FTB Part A & B for higher income earners, capping
payments at $100,000, down from $150,000.

Removal of FTB Part B for families once their youngest child turns 6, a loss of $58 per week.
Sole parents with older children will receive a supplement payment of $14 per week.

FTB supplements (annual payments) reduced.

Pensions indexed to CPI instead of wages from 2017 – resulting in an erosion of the value of
the pension each year. After 10 years pensioners will be approximately $80 per week worse
off.

Pension age extended to 70 by 2035 for people born after 1958. Those unable to maintain
employment to 70 will be self-funded or reliant on Newstart, a loss of $64 - $166 per week.

Tightening of pension income test from 2017.

No changes to superannuation tax concessions, which are disproportionately skewed to
benefit higher income earners who are able to contribute more to superannuation.
Superannuation tax concessions cost the government $40b per annum in lost revenue,
approximately the same amount as the entire age pension.
Health
For 30 years Australia has been committed to a health systems which provides universal access to
essential health services, regardless of your ability to pay for the service. This budget introduces a
co-payment for GP visits and raises the cost of medicines under the PBS scheme.

All Australians to pay at least $7 for GP visits, blood tests and X-rays. Concessions may apply
for low income patients after 10 visits in a calendar year, and it is indicated that patients
with a diagnosed chronic illness will be exempt from the payment.

States will be able to charge for emergency department visits if it is deemed that the
condition could have been treated by a GP.

Funding cut from hospitals, with the state Governments forced to pick up the short falls.

General patients to pay $5 more and concessional patients 80¢ more for prescription drugs.

Deferring the commencement of the national partnership for adult dental services making
dental services to low income patients continue to be unaffordable.

Ceasing of Medicare Locals, to be replaced by Primary Health Networks which will have
more of an acute health care focus and lose the holistic approach adopted by Medicare
Locals.

Increasing of the PBS safety net for medications. Out of pocket costs to increase for those
accessing a high level of health care.
Education and early childhood services

No certainty of continuation of funding for the National Partnership Agreement for Universal
Access to Preschools, subject for review and agreement by the states.

Changes to the Jobs, Education and Training Child Care Assistance scheme resulting in an
increase to the co-contributions for the cost of child care.

Income eligibility threshold for Child Care Benefit and Rebate frozen for 3 years.

$65.2 million of funding removed from the Family Daye Care sector.

Complete deregulation of university fees – allows Universities to set their own prices for
students undertaking degrees, whilst funding to universities has also been cut and the
indexation on HECS debts will be increased.

Commonwealth funding extended to students at TAFEs, private colleges and sub-bachelor
degrees at a cost of $820 million over three years

Labor's 'Gonski' school funding commitments scrapped from 2017-18 with school funding
indexed to inflation from 2018, estimated to leave a gap of $30b over the decade.

School chaplaincy program continued at a cost of $243.5 million over five years

Funding to support non-CCB approved care in organisations such as Neighbourhood Houses.
Indigenous affairs

Widespread reduction in Aboriginal and Torres Strait Islander programs and services with
150 programs consolidated into four, resulting in $493.7m in savings

Discontinuation of funding to key peak and representative bodies including the National
Congress and essential services, with significant cuts to NATSIL’s and Aboriginal FVPLS

Aboriginal and Torres Strait islander people and services will also be adversely impacted by
changes to income support and health co-payments with higher rates of poverty and
disadvantage
Community Services

Re-commitment to NDIS with funding maintained in the forward estimates.

Federal Community grants funding to undergo a major restructure implications not yet clear.

Funding commitments for Families and Children Services including Family and Relationship
Services, Communities for Children and Family Law Services.

Funding of Headspace services

Indexation of 112 DSS administered programs paused for three years

Discontinuation of the National Respite for Carers Program grants round

Reduction of funding to Legal Aid

Likely abolition of the Disability Discrimination Commission

Discontinuation of the Community Innovation through Collaboration Program.
Access to Affordable Housing

Reduced funding to the National Rental Affordability Scheme, resulting in the loss of 12,000
affordable dwellings which were due for construction under the scheme.

12 month extension of the National Partnership Agreement on Homelessness but no future
funding committed. However, the research strategy under this program will not continue.

Cancellation of the First Home Saver Accounts scheme, that allowed those saving for their
first home to access a higher interest rate and government contributions.