2016 Budget | ACOSS responds to budget

ACOSS has welcomed the youth employment programs but is disappointed at the cuts affecting people on low incomes.

“The Budget locks in $13 billion in cuts from family payments, income support for young people and paid parental leave, and adds a further $3 billion in cuts to payments and essential services. This includes cuts to Medicare and dental health and income support for people with disability,” said Dr Cassandra Goldie, ACOSS CEO.

“Alarmingly, the budget delivers a real cut to new recipients of the Newstart Allowance through removing the compensation for carbon pricing, while the related tax cuts remain in place. For people surviving on just $38 a day, this is unconscionable.

“We are very pleased to see the new approach to helping young people into paid work. This Budget recognises the failure of work for the dole, and has instead provided an opportunity for young people to get work experience in real jobs with a wage subsidy, something we have urged for some time and should be used more widely.”

Goldie said they also welcome the action on superannuation and multinational tax avoidance. The superannuation reforms take us in the right direction, tackling unfair concessions for people on higher incomes, and providing assistance to people who struggle to secure adequate retirement savings.

“The personal and company tax cuts costing $8.8 billion are only partly offset by the $3.3 billion in integrity measures, most of which are assumed to come from more resourcing of the ATO. By failing to act on shelters and loopholes such as negative gearing, capital gains discounts, private companies and trusts and work-related deductions, our revenue base is at real risk of further erosion,” said Goldie.

“We must be able to afford to properly fund health, education and social security to invest in our capabilities and protect people who are vulnerable.”

ACOSS is concerned that all of the reduction in the deficit over the next four years ($1.7 billion) from this Budget comes on the spending side ($3.3 billion), with revenue declining by $1.3 billion.

“The Budget has failed to take any action to address housing affordability in Australia, nor to lift the unemployment payment. Serious gaps remain in essential services including legal assistance, early childhood and homelessness services,” said Goldie.

“We cannot support further cuts to Centrelink staffing, at a time when the system is already under severe strain.

“Most people are still paying less tax overall than a decade and a half ago, before eight annual tax cuts were given. The proposed personal tax cut will only benefit the top 20 per cent of income taxpayers.”