Introduction by Croakey: Last year, we published an article investigating whether “the cost of living crisis” that is so often mentioned by politicians of all persuasions is a potentially unhelpful framing.
The article asked, would there be better policy outcomes for health if we focused instead on addressing the ‘inequality crisis’?
It remains a timely question as the Australian Council of Social Service says the Federal Budget’s failure to lift people out of poverty, at the same time as announcing more tax cuts, is “astounding”.
The post below compiles Budget reaction on the wider determinants of health, including social policy and the environment.
Comments are included from ACOSS, TasCOSS, Jesuit Social Services, Australian National Preventive Mechanism, Homelessness Australia, The Australia Institute’s Centre for Future Work, Asylum Seeker Resource Centre, Professor Stephen Bartos, the Climate Council and Australian Conservation Foundation, and more will be added.
Simply shocking
Australian Council of Social Service (ACOSS)
ACOSS CEO, Dr Cassandra Goldie said: “We always knew this was going to be an election budget. In the lead up, we have welcomed some important investments in essential services, including health, public education and early childhood education.
“We’re astounded that the centrepiece of tonight’s budget is more dollars for everyone except those with the least.
“Only a year after the last tax cuts, the government is announcing a new set.
“We need a budget and an election that sets us up for the future. The last thing we need is a bidding war on more tax cuts.
“In the face of a serious cost-of-living crisis and overwhelming evidence to fix JobSeeker, to give $7b in tax cuts and do nothing to lift people out of poverty is simply shocking.
“This budget has welcome investments in health, public education and care services, which help to restore years of cuts. Expanding bulk billing and boosting spending on public education will help communities around the country. The women’s health budget measures are good to see and address some of the gaps in our healthcare system. The guarantee of three days’ early learning is most welcome, especially for families on very low incomes.
“The question for the next government is: how do you keep paying for these critical services upon which we all rely?
“We don’t have a spending problem. We have a revenue problem. Governments can’t continue to waste over $30 billion a year on super and capital gains tax breaks for people in the top 10% of incomes.
“We need to close these gaps in the tax and revenue base to meet the community’s needs ongoing.
“We also need to ensure help goes to people who need it most. The government’s total $6.8b spend on energy bill rebates could have funded energy upgrades for every social housing property in Australia, permanently reducing bills by thousands of dollars each year.
“As Australia heads toward an election, ACOSS calls on all parties and candidates who wish to form government to embrace an ambitious vision that leaves no one behind.
“People in Australia are yearning for more substantial reform. They’ve weathered difficult times and deserve a government willing to make bold investments in our shared future.”
Many gaps
TasCOSS
Adrienne Picone, CEO, TasCOSS said:
This Federal Budget lacks the long-term vision and reform necessary to address cost of living pressures being felt by the Tasmanian community.
While tax cuts will provide relief for many, those on the lowest of incomes – who do not earn enough to pay tax – get nothing. This budget missed a critical opportunity to lift Tasmanians out of poverty by raising working age payments to at least $82 a day.
This budget does provide some welcome investments in health, public education and care services, which help to restore years of cuts. Expanding bulk billing and boosting spending on public education will help communities around the country.
In a housing crisis, there is sadly no new support for renters, and as a result the doubling of funding for homelessness services to around $400 million a year is essential to address the ongoing need. Additional funding ($6.2 million) for homelessness research, advocacy and coordination is a positive announcement.
With many Tasmanians waiting more than a year and a half on the social housing wait list and forced to couch-surf, cram into unsuitable lodgings or even sleep rough, the outlook for an affordable place to call home is bleak.
Energy bill relief of $150 is welcome for those tens of thousands of Tasmanians who are experiencing energy poverty, but they are poorly targeted and deliver financial support to the wealthiest Australians, at the expense of increased support for those most in need.
The Government’s total $6.8 billion spend on energy bill rebates could have funded energy efficiency upgrades for every social housing property in Australia, permanently reducing bills by thousands of dollars each year.
With the longest public dental wait times in the nation, Tasmanians would have been hoping to see Medicare-funded dental services made available to everyone.
Missed opportunity for leadership on youth justice
Jesuit Social Services
The 2025-26 Federal Budget represents a missed opportunity for the Federal Government to show national leadership on youth justice at a time when many states and territories are shunning the evidence of what works in preventing crime, says Jesuit Social Services.
“We’re deeply concerned about the state of youth justice across Australia. This includes rushed bail reform in Victoria which we fear will sweep more people up into the prison system, the lowering of the age of criminal responsibility in the Northern Territory and the Queensland Government introducing laws that it admits violate the human rights of children and young people,” says Jesuit Social Services CEO Julie Edwards.
“In our recent Federal pre-Budget submission we highlighted that ongoing failures of these systems cannot be ignored by the Commonwealth, and that we must do better in protecting and promoting the safety and welfare of vulnerable children.
“Given the current state of youth justice systems across the country, we hoped to see the Federal Government implement and resource the recommendations of the National Children’s Commissioner’s Help way earlier! – transforming child justice report. Key recommendations include establishing a National Taskforce for reform, appointing a Federal Cabinet Minister for Children and supporting the implementation of evidence-based solutions such as the Youth Justice Group Conferencing program which we run across Melbourne and the Northern Territory.
“We all want stronger and more cohesive communities, with less crime and fewer victims, and at a time when state and territories are favouring populist tough-on-crime policies over the evidence of what works, national leadership should be paramount.
“The Budget also includes some funding to improve justice system responses to victim survivors of sexual violence, which we welcome. We’d like to have seen much more focus on preventing violence before it starts, including the collection of more and better data on perpetration of family violence and child sexual abuse, and investment in targeted early intervention programs. It’s disappointing to see no additional funding in this space given men’s violence is rightly acknowledged, including by this Government, as a national crisis.
Jesuit Social Services welcomes some initiatives including investments into public education, an increase to the Medicare levy threshold and bolstering the Pharmaceutical Benefits Scheme.
“These sensible investments will assist many. However, billions of dollars in tax cuts, including for high income earners, at the expense of any real measures to support those most on the margins is disappointing. That money would be far better spent raising the rate of Jobseeker to allow recipients to lead dignified lives, something we will continue to advocate for.
“With a Federal Election around the corner, we hope to see both major parties make evidence based commitments to improve the lives of all Australians, including the marginalised people and communities that are most in need of support.”
Critical torture prevention work neglected
Joint statement by Members of the Australian National Preventive Mechanism
Members of the Australian National Preventive Mechanism (NPM) express our deep concern that once again the federal Budget does not include more funding to support our torture prevention work in detention environments, and Australia-wide implementation of the Optional Protocol to the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment (OPCAT).
This comes despite the high numbers of people deprived of liberty in the custodial system and in other detention environments in Australia.
The Australian NPM’s recently released annual report for 2023–24 highlights some of the serious and ongoing issues in detention across Australia, including the overly punitive state of youth justice, the over-incarceration of Aboriginal and Torres Strait Islander people, population pressures in prisons and youth detention, and the over-use of isolation practices.
A properly functioning NPM Australia-wide is more important than ever. This is so that we can oversee what is happening to people in places of detention, identify risks before they manifest as torture or other ill treatment, and provide expert advice to governments and those charged with the care of people in detention.
“Australia can improve treatment and conditions in a wide range of environments where people are deprived of their liberty,” said Iain Anderson, Australia’s Commonwealth Ombudsman and NPM Coordinator.
“Australia has significant shortcomings in the treatment of many people deprived of their liberty. Mistreating people in detention is inconsistent with human rights and has no positive benefit for the broader community,” Mr Anderson added.
We want to work with governments and detaining authorities to support them to chart a better way forward on issues in detention. But to do this, we need to be adequately resourced for our work.
We again call on all Australian governments to, where they have not done so, appoint NPMs, legislate their role and powers, and adequately resource them so that all members of the Australian NPM can work to prevent the mistreatment of people in detention.
This joint statement is made on behalf of the following Australian NPM members:
Croakey notes that the NPM’s latest annual report says: “Unchanged from our last annual report, six of Australia’s nine jurisdictions have nominated NPMs, with no NPMs nominated in New South Wales, Queensland and Victoria. Furthermore, the mere nomination of NPMs is insufficient to meetAustralia’sOPCAT obligations.
“OPCATimplementation requiressufficientandongoing funding, aswell as legislation that provides a clear basis for all NPMs’ functions, powers, protections and independence and that enables SPT visits to places of detention. Currently, no jurisdiction in Australia is fully compliant with these requirements.”
Lack of ambition leaves much to be done after the election
The Australia Institute’s Centre for Future Work
This analysis welcomes the Budget’s focus on assisting those on low to middle incomes, rather than merely trying to buy the votes of those on average and high income, “which characterised the previous two pre-election budgets”.
It notes the targeting of tax cuts at low-income earners and says the extension of the energy rebate for another six months will also be welcomed by those on low-incomes, as will healthcare initiatives.
The analysis goes on: “New support for wage increases in the female-dominated and low-paid aged care and early childhood education and care (ECEC) sectors demonstrate the Government’s commitment to addressing long-standing undervaluation of feminised care occupations.
“It is disappointing to see that the opportunity has been missed to raise Job Seeker and Youth Allowances from their grossly inadequate levels.
“As was the case last year, we are glad that the budget steers well clear of the austerity of past “horror” budgets. However, the 2025-2026 budget is characterised by the absence of any significant initiatives.
“Our analysis is shorter than in previous years, because there is very little in this budget that is new. Even some of the more notable measures, such as the outlawing of non- compete clauses for workers, while very much welcome, do not have a great budgetary impact.
“In summary, as expected with a Federal election looming, the budget is not a horror one of austerity. There are continuing investments in some key areas supporting wages growth where it is solely needed and rebuilding important areas of public good.
“However, there remains much that needs to be done in the next parliament, whoever is in government.”
Abandons refugees
Kon Karapanagiotidis, CEO and founder of the Asylum Seeker Resource Centre
Peak body funding welcomed
Homelessness Australia
Homelessness Australia has welcomed the Federal Government’s inclusion of $6.2 million in homelessness peak body funding over three years in the Federal Budget.
“If Australia is going to solve homelessness, we need to draw on the policy, research and wisdom of people working to respond to homelessness and people with lived experience of homelessness,” CEO of Homelessness Australia Kate Colvin said.
“To solve homelessness, we also need to invest in the capacity of homelessness services to share knowledge and best practice to continually improve homelessness services.
“This important funding commitment will increase our capacity to support the homelessness sector and to develop policy recommendations, helping to develop the most effective responses to the growing homelessness crisis,” Kate Colvin said.
Homelessness Australia also welcomes the inclusion of continued investment in housing and homelessness funding to the states of $1,816.6 million in 2025-26, and $9.3 million over five years, as well as $1 billion for crisis and transitional housing for young homeless people and women and children fleeing violence. The peak body also welcomes investments in new social and affordable housing via the Housing Australia Future Fund.
Beyond the budget, Homelessness Australia urges all parties contesting the election to commit to the reforms and investment needed to drive down homelessness, and to better enable homelessness services to respond to increasing homelessness in our community.
Homelessness Australia’s election platform calls for:
- $670 million for homelessness services so that no-one is turned away
- investment in social housing to achieve a target of 10% of housing stock
- increased income support and Commonwealth Rent Assistance
- New funding for homelessness needs to tackle the root causes of homelessness, including resourcing:
- A Homelessness Prevention Fund
- Programs to sustain tenancies
- Proven models of housing with support for young people
- An expansion of Housing First and supportive housing programs for people at risk of chronic homelessness
- Resourcing a First Nations led housing and homelessness plan.
Whither climate action?
Professor Stephen Bartos, University of Canberra
Writing at The Conversation, Professor Stephen Bartos says a “missing element of the budget is new spending to combat climate change”.
“The threat of climate change to the budget estimates has grown significantly. This is acknowledged briefly with a half page in the budget’s “statement of risks” – “climate change is expected to have a significant impact on the budget”.
“However, that impact is not quantified – possibly because of “significant uncertainty”. Yes, there is uncertainty.
But the same applies to other parts of the budget, including the international economy, which is discussed in much more depth. The climate change department is one of a handful that lose staff in this budget. It may take more severe disasters before it regains prominence in the budget papers.”
Climate action urgently needed
Climate Council
Australians are footing a $13.5 billion bill for worsening extreme weather fuelled by climate pollution, which underscores why we should be spending more on permanent solutions that better protect Australians, the Climate Council said in response to this evening’s Federal Budget.
Climate Council CEO, Amanda McKenzie, said: “Australians are concerned about both the rising costs of living and escalating costs of unnatural disasters driven by climate pollution from coal, oil and gas.
The massive hit to the budget from recent Tropical Cyclone Alfred – supercharged by dangerous climate pollution – is expected to cost taxpayers about $1.2 billion. This shows the on-going terrible cost to Australians from unnatural disasters. It is more important than ever to invest in solutions that slash climate pollution and make Australians safer.
“The good news is that measures like investing in access to rooftop solar backed up by batteries – that cut climate pollution – also provide Aussies with cheaper, reliable power for years to come. It’s far less expensive than constantly cleaning up the mess of worsening disasters.”
The 2025-26 Federal Budget confirms funding for climate solution commitments already made by the Albanese Government, including:
- $3 billion in funding for investment in green iron and aluminium
- $2 billion for the Clean Energy Finance Corporation to invest in renewable power and storage, energy efficiency, and other low emissions technology
- $3 billion for rail projects in Western Sydney and Melbourne.
While $1.8 billion of further electricity bill rebates will provide temporary relief for households, the Climate Council is calling for the government to make commitments that permanently bust power bills and slash climate pollution, like rooftop solar, household batteries, electrification, and energy efficiency.
“Renewable energy is the fastest way to cut power bills, replace retiring coal, and secure a safer future for our kids and communities. Already, renewable power makes up around 40% of our main national grid and we must maintain this momentum to future-proof our grid, help lower energy bills, and cut climate pollution.
“The next government will take us through the most critical years of our generation. 2025 is the midway point of the critical decade for climate action. There’s no time to waste saying goodbye to polluting coal, oil, and gas. Everything we do now with the solutions already at our disposal matters.”
Climate Councillor and economist, Nicki Hutley, said: “These confirmed funding commitments for initiatives, like green metals, are welcome. From here, there are abundant opportunities for the Federal Government to grow Australia’s clean economy for generations to come through win-win solutions for our economy and climate.
“While energy rebates offer reprieve from power price pain today, it’s only short-term relief. Australians deserve long-term solutions that help permanently lower energy bills and climate pollution. We don’t have to choose between cost of living relief and climate action – we can and must address both together.
“Smart investments where the best gains can be made – particularly energy efficiency and growing our renewable energy capacity – can help protect Australians from climate and financial shocks. This ensures we can make progress, easing cost of living pressures and setting our next generations up for a more secure future.”
Nature suffers
Australian Conservation Foundation
Despite Australia’s natural world facing the double whammy of climate change and an extinction crisis, less than one cent out of every dollar in Budget 2025-26 is allocated to protecting nature, the Australian Conservation Foundation said.
“With rampant habitat destruction and the accelerating impacts of climate change, numerous ecosystems are on the brink and people’s livelihoods are at risk, yet investment in nature protection and climate action remains a tiny fraction of Commonwealth spending,” said ACF Chief Executive Kelly O’Shanassy.
“Even though 42 more species and ecosystems were added to the threatened species list in 2024 and a further 14 were moved to a category closer to extinction, less than one cent out of every dollar in this Budget is earmarked for nature protection and resilience.
“There is no new funding for threatened species in this budget, except for a paltry allocation of $3 million from existing resources for a captive breeding program for the Maugean skate. This does not lessen the blow dealt to this fragile and endangered creature today by the passing in the House of the amendment to national nature laws, which will terminate a review of the impacts on salmon farming on the Maugean skate.
“All the government has to show for threatened species funding in its term is the $224.5 million over four years that it announced three years ago. Its priorities are all wrong.
“While spending on all environment protection programs totals $9.4 billion over the forward estimates, a single fossil fuel subsidy, the notorious Fuel Tax Credits scheme – which encourages diesel fuel use and discourages innovation – is allocated $57.8 billion over the same period. This subsidy has increased by $13.6 billion across forward estimates.
“The government is spending six times more on fossil fuel subsidies than it is investing to protect our precious environment. This is a disgrace.
“The budget includes $250 million for the Saving Australia’s Bushland program which is an important first step towards meeting our 30 X 30 target. More will be required.
“Funding previously committed to establish the EPA remains in the budget and will support the establishment of this critical agency in the future.
“The Albanese government has made some good moves to invest in the energy transition, continuing to invest in clean manufacturing and green metals.
“Yet while Australia’s natural world faces a double whammy of climate change and an extinction crisis, this budget offers little more than loose change.”
The budget includes:
Nature
No new funding to establish a national environment protection agency.
No funding for the full reform of national nature protection laws (EPBC Act).
No new funding for threatened species recovery, except for $3m from existing resources towards a Maugean skate captive breeding program.
$250m over the forward estimates for the Saving Australia’s Bushland program to purchase high biodiversity value land, better protect degraded government land, establish new Indigenous Protected Areas and Indigenous Ranger programs, and private and state/government partnerships to protect high conservation value areas.
$12m to deliver increased ocean protection over four years.
$55.2m to renew lease arrangements with Traditional Owners of the jointly managed Booderee, Kakadu, and Uluru-Kata Tjuta National Parks.
$11m to reduce the economic and environmental damage caused by feral animals, pests and weeds.
Energy transition
$4.3bn in new net zero spending commitments which includes:
$1bn over seven years (off budget) for the Green Iron Investment Fund.
$2bn towards the recapitalisation of the Clean Energy Finance Corporation to invest in renewable energy and low emissions technology (the Government has already provided funding for this measure).
Stop funding fossil fuels
$57.8bn for the Fuel Tax Credits scheme.
Climate resilience
$28.4m to construct urgent additional coastal defences to protect vulnerable communities and infrastructure against climate disasters such as floods and erosion.
$17.7m to support bushfire resilience activities in rural and regional Australia.
Budget documents
- Federal Budget papers are here
- Treasurer’s Budget speech is here
- Budget paper No 2 is here
- Department of Health and Aged Care stakeholder pack is here
- Women’s Budget Statement is here
- Health and Aged Care Minister Mark Butler’s statement is here.
See Croakey’s articles on the 2025-2026 Federal Budget
