A missed opportunity?

Posted May  4, 2016 in News

Responding to the 2016-17 Federal Budget

The President of the Uniting Church in Australia, Stuart McMillan, has described the 2016-17 Federal Budget as a “missed opportunity” to alleviate poverty and disadvantage at home and around the world.

”There is not nearly enough in this budget to assist the most vulnerable,” says Stuart.

“It is deeply disappointing that planned cuts to foreign aid are going ahead, leaving some of the world’s poorest people without the life-changing – often life-saving – assistance that comes with Australian aid.

“The budget also contains no new social programs aimed at Aboriginal and Torres Strait Islander peoples, who are the most persistently disadvantaged Australians.”

Challenges faced by Australia’s First Peoples and by international partner churches were topics of considerable discussion at the UnitingWomen 2016 conference in Adelaide recently. Stuart participated in much of the conference, hearing stories of the issues faced by women from the Uniting Church and beyond.

The Australian Aid campaign, which has received significant support from Uniting Church leaders, was also a point of focus on the last day of the UnitingWomen event. Uniting Church SA Moderator Dr Deidre Palmer spoke about the campaign, drawing attention to the Stop the Clock movement (pictured) that sought to discourage the Australian Government from making these planned cuts to aid.

“Instead [of supporting vulnerable communities] the Government is foregoing revenue through a long-term commitment to cutting company tax rates to 25% and tax concessions for half a million middle income earners,” Stuart continues.

“I’m afraid that the 2016-17 Federal Budget falls short of what I had hoped for in terms of support for the most in need.”

UnitingWorld National Director Rob Floyd shares this disappointment, expressing his dismay that Australian aid has now fallen to a record low level as a share of national income.

“This is the lowest level we have ever given as a nation,” he says. “As we near the Federal Election, we call on all major parties to reaffirm their commitment to Australia’s aid and development efforts.”

However, Stuart does feel the budget lays positive groundwork for providing assistance in Syria.

“While the overall foreign aid funding situation is regrettable I’d single out for praise extra funding for humanitarian assistance in Syria and neighbouring programs and for community support programs for newly arrived Syrian and Iraqi refugees,” he says.

Closer to home, the budget outlines several measures that will be closely looked at by the UnitingCare network, including changes to the Aged Care Funding Instrument.

Stuart welcomes a number of specific measures.

“Funding for a sustainable National Disability Insurance Scheme, greater tax compliance and countermeasures aimed at multinational and corporate tax avoiders, and winding back overgenerous superannuation tax concessions are all positive initiatives.”

“Measures to address youth unemployment are also welcome, but need to be closely monitored to guard against abuses.”

Martin J. Cowling, the Associate National Director of UnitingCare Australia, has also drawn attention to some of these positive aspects, including areas in which UnitingCare has been advocating for some time.

“We particularly welcome the Youth Jobs PaTH program and will work with the Government through its Try, Test and Learn Fund,” says Martin, addressing youth unemployment measures aimed at equipping young people with essential work skills.

“UnitingCare strongly welcomes the reforms to superannuation tax concessions which will deliver a critical $6 billion revenue stream. We have been calling for these for almost a decade.”

While UnitingCare recognises other positive aspects in the budget, there are serious concerns over funding cuts to services for vulnerable groups.

“New spending on public hospitals is offset by $3.2 billion in cuts to funding for aged care providers, family support, and Medicare benefits,” says Martin.

“We welcome the funding for the rollout of the National Disability Insurance Scheme. However, it is concerning that the funding is sourced from savings in other areas of social welfare, including cuts to the Disability Support Pension and Carers Allowance.

“The ‘more efficient targeting’ of social welfare expenditure is simply code for further welfare cuts for the most vulnerable – with more than two billion dollars removed from the welfare system over five years,” he continues.

“UnitingCare Australia fully supports responsible fiscal policy, but that means recognising that well designed tax and spending programs can address disadvantage and invest in people, while also promoting jobs and growth.”

New Times online will provide more information from the Uniting Church in Australia, UnitingCare Australia and UnitingWorld as further developments occur.

To find out more about the Australian Aid campaign or what the Uniting Church SA is doing in this space, please contact Transforming Justice Coordinator Adrian Nippress at Turn on Javascript!

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