"A new report released today by the Australian Council of Social Service shows that, by keeping most of the 2014 savings measures and delivering new cuts, the 2015 Budget would strip an estimated $15 billion over four years from basic services and supports, with total projected cuts of $80 billion from health and schools funding to the States over the next decade. "Last year's devastating Federal Budget casts a long shadow that undermines some advances made in this year's Budget," said ACOSS CEO Dr Cassandra Goldie. "There is a fair alternative path to budget repair - including through structural tax reform - but unfortunately the best options have been ruled out by the Government in advance of the taxation review. "While ACOSS welcomed the $3.5 billion new investment in early childhood education and care and a more sensible road to pension reform, the overall Budget fails the fairness test because it delivers an estimated $15 billion in spending cuts, with new cuts to child dental and community health programs in this Budget on top of retained savings from the last Budget.
"It is disappointing that the Government appears to be retreating from its commitment to pursue comprehensive tax reform, which is vital to provide the revenue future Governments will need for essential services. People on modest incomes will pay for inaction on tax reform when they need health care, to send their children to school, lose their jobs or retire. "This year's Budget not only failed to reverse the severe cuts to payments and programs from the previous budget, but directly linked unfair changes to family payments to new spending on child care in the current Budget. The cut to Family Tax Benefit Part B to single income families with children over six years would result in income losses of $49 per week for single parent families or more for those with older children. This cut will have dire consequences, particularly when taken together with the freezing of family payments indexation - a condition for the new investment in child care - given that a third of sole parent families are already living in poverty.
The combined impact of the two budgets includes:
- $126 million cut from child dental programs;
- $1 billion cut in health funding;
- $6 billion cuts to family payments;
- a combined $80 billion over 10 years for hospitals and education;
- $1 billion in cuts to vital community services for the people in greatest need around the country, such as those experiencing financial crisis or family breakdown, children at risk, vulnerable young people, new mothers and babies, people facing eviction and homelessness, carers in need of respite, those struggling with drug and alcohol addictions, and those with mental health problems, including $500 million from Aboriginal and Torres Strait Islander services and programs;
- $674 million from affordable housing and homelessness programs.
In stark contrast, the government has made only modest efforts to raise revenue through fair changes to taxation, and the only significant measure is temporary:
- $3.1 billion Temporary Deficit Levy
- $295 million capping of meal and entertainment benefits
- $845 million tightening of car expenses.
DOWNLOAD ACOSS Budget Analysis
Summary of harmful cuts
The 2015-16 Budget included new cuts to a number of supports and services which will directly impact on people on low and moderate incomes:
- Reduced funding to child dental health programs saving $126 million/ 4 years;
- Cuts to health funding likely to undermine the capacity of community health organisations and services saving $963 million/ 4 years;
- Reduction in funding of remote housing programs of $95 million/ 4 years.