This is my third budget since my election to the Australian Parliament. I have to say, it was rather underwhelming. Once again, we find ourselves facing a budget that falls short of resources and investment for the people of Fowler and the broader Australian community.
In the past two years, I have been critical of the Government’s failure to address the cost-of-living issues that are hitting mums, dads and working Australians’ hip-pockets. This year’s budget seems to lack the transparency and detail we need to understand how our tax dollars are being allocated. In addition, it looks like our Fowler community has missed out once again, on any direct initiatives that would improve people’s lives, making living more affordable, and instil confidence that they can sustain their small businesses. The Government’s budget is more about making headlines than making a tangible difference.
Cost of Living
The cost-of-living crisis remains at the forefront of our concerns. Inflation, driven by irresponsible economic management and excessive money printing, continues to erode the purchasing power of our dollar. This budget’s response—a mere $300 energy bill relief for households and $325 for some small businesses—is a drop in the ocean compared to the exorbitant energy costs our community faces. In Fowler, businesses are grappling with energy bills upwards of $11,000, and a $325 relief is hardly sufficient.
Moreover, this relief is indiscriminate, failing to consider the varying financial capabilities of households. Why is this relief not means-tested? It should be targeted at those who need it most, not a blanket handout. I’m pledging to donate any relief I receive to my community, and I urge my fellow MPs to do the same.
The budget boasts a small surplus next year, but at what cost? The surplus is built on projected deficits for the next four years. This approach is reckless, especially given that the government’s term is three years, and we are already in the third year of this Labor Government. Spending more than we earn is a path to financial ruin, and those ‘Stage 3 Tax cuts’ might be short-lived.
Here’s my take on other budget areas:
Aged Care
I’ve previously highlighted the challenges in the aged care sector, and while the budget proposes $65.6 million over four years to address workforce issues, it’s questionable whether this will be enough. The sector’s attractiveness as a career choice is waning, and without a clear plan to tackle housing and other rising costs, we risk failing our aged care professionals and those they care for. We need to make aged care more inspiring, rewarding, and purposeful to attract and retain talent.
Education
I’ve been vocal about the need to address HECS-HELP indexation, and I welcome the budget’s move to tie indexing to the lower of the Consumer Price Index or the Wage Price Index, with a retrospective adjustment to ease the HECS-HELP burden. But we can do more, and I’ll be bringing ideas to the table soon.
The budget’s provision of $427.4 million for Commonwealth Practical Payments to support teaching, nursing and social worker students and $350.3 million for FEE-FREE Uni Ready courses is a step in the right direction, but the incentives may still fall short in the face of the ongoing cost of living crisis.
Future Made in Australia
The ‘Future Made in Australia’ plan, which I’ve been waiting to see more details on, is a distant promise with funding not starting until 2027. The $22.7 billion over a decade lacks a clear focus on supporting small manufacturing businesses. Manufacturing is the largest employer in Fowler, standing at 40% yet the plan doesn’t really invest in our local community, many of whom are small to medium sized manufacturing companies.
The existing Industry Growth Program (IGP) and National Reconstruction Fund (NRF) under the Future Made in Australia plan is also concerning. As not a single dollar from these schemes has reached industry for three budgets straight.
A small business owner shared with me that every single small or medium manufacturing business in this country is now finding it hard to compete with the increased costs in utilities – power, gas, fuel, insurance – just to name a few. Rather than make big spending announcements, Government needs to find practical, viable answers that provide efficient and effective long-term solutions for businesses to evolve, and stay in business.
Housing
The housing supply and affordability issue did not just happen overnight. The lack of housing for first home buyers and renters has been due to successive governments’ failure to come up with policies and initiatives that would make it possible for people to buy or rent. The Labor government is continuing this trend of making announcements without really understanding if what they’re announcing is feasible. The $6.2 billion commitment to new housing investment, including $1 billion for social housing, is a significant figure. But how will this money be spent? I remain sceptical about the government’s ability to meet the ambitious target of 1.2 million homes over the next five years. With the increased costs in construction and supply chains, is this ambitious number achievable?
I advocate for action to reduce the tax burden on new home construction as well as other taxes that are currently tied to building a new home. While some of these taxes are imposed by the State, the Federal Government should take a leadership role and drive conversations around how this can be achieved, in order to make housing affordable and within reach for ordinary working Australians.
This budget, much like those before it, does not rise to the occasion. It is imperative that we demand more for Fowler and for Australia—a budget that truly addresses the pressing needs of our community.