Response to Federal Budget 2025-26, delivered by Treasurer Jim Chalmers on 26 March 2025.

The 2025-26 Federal Budget presents a mixed picture for Australians experiencing hardship. While there are positive steps in health, education, and some social services, key areas of concern—such as income support, housing, and support for people seeking asylum—remain largely unaddressed.

We welcome the Budget’s investment in public health, including $8.4 billion to expand bulk billing, additional urgent care clinics, and funding for hospitals and cheaper medicines. Increased support for early childhood education, wage increases for aged care and childcare workers, and targeted measures to improve economic opportunities for First Nations Peoples are also encouraging developments.

However, despite these gains, many Australians struggling with cost-of-living pressures will continue to face challenges. JobSeeker and other working-age payments remain inadequate, with no further increase beyond previous adjustments, leaving them well below the poverty line. The Society has long called for a meaningful rise in income support to help people meet essential costs and lift more Australians out of poverty.

Similarly, housing remains a critical issue. The Budget includes $1.0 billion for crisis and transitional accommodation for women and children escaping domestic violence and at-risk youth, which is a welcome commitment. However, there was no increase to Commonwealth Rent Assistance or additional funding to expand social housing, despite growing rental stress and homelessness across the country.

We continue to advocate for long-term investment in affordable and social housing, as well as energy efficiency upgrades for low-income households to reduce ongoing costs.

For First Nations communities, the additional $1.3 billion investment in Closing the Gap initiatives will support job creation, economic development, and community services but it is over six years. As the Productivity Commission recently concluded, governments have not taken enough meaningful action to meet their commitments under the Agreement.

One area of significant concern remains the Status Resolution Support Service for people seeking asylum. Funding for this essential service, which provides basic financial assistance to those awaiting visa outcomes, has been reduced by 93 per cent since 2015-16, to just $20 million. Without adequate support, many are left in vulnerable situations, relying on charities to meet their basic needs. Ensuring a fair and sustainable safety net for all remains a key priority for the Society.

The Budget’s tax cuts ($17 billion) and energy bill relief ($1.8 billion) will go to all Australians, not just those in need. We would have preferred to have seen tax reform rather than tax cuts, and investment in energy efficiency, rather than energy bill relief.

Finally, the Not-for-profit sector has also missed out. Volunteering is an essential part of our society yet no funds were allocated towards the National Strategy for Volunteering or to implementing reforms contained in the Not-for-profit Sector Development Blueprint and the Productivity Commission’s Inquiry into Philanthropy.

While the Budget makes some progress in key areas, more work is needed to build a fairer and more inclusive Australia. The Society will continue to advocate for policies that provide dignity, stability, and opportunity for all Australians, particularly those experiencing financial hardship and disadvantage.