Media release – Andrew Wilkie, independent MHR for Clark, 14 May 2024

A LABOR BUDGET … JUST

“This Government’s budgets have been markedly better than the budgets brought down by their predecessor. They are more compassionate, and we see evidence of that in this budget, with more money for social housing and homelessness services, mental health, energy bill relief and superannuation for paid parental leave. But sadly it falls short of the Labor Budget the Treasurer promised, as it doesn’t meet the moment or adequately support those most in need.

“The Budget was a mixed bag for Tasmania in particular. Yes, any national program that helps the most disadvantaged does have a disproportionate benefit for Tasmania because of our heavy reliance on government support, and in particular income support. However there was little funding specifically for Tasmania and our pressing needs, for instance a refuelling option for RSV Nuyina and the urgent repair of Macquarie Wharf, went unmet.

“But this budget strikes me as having three fundamental flaws. For a start, there’s the budget trick of promising to deliver one of the biggest government programs, the Defence upgrade, way beyond the forward estimates where funding might be likened to an outback mirage. This is reminiscent of the Gillard Government putting much of the NDIS and Gonski funding beyond the reach of its budgets, making it all someone else’s problem.

“The thumping amount of money still to be siphoned to high-income earners also remains a problem. Yes, the Government’s decision to revamp the Stage 3 tax cuts is good. But for the wealthy, including federal politicians, to enjoy an annual tax cut of about four and a half thousand dollars is unconscionable and unaffordable. And although the Government promotes these tax cuts as the centrepiece of their cost of living relief package, the reality is they will be of no benefit whatsoever for those on extremely low incomes or income support. In other words, full aged pensioners, DSP recipients and the unemployed get nothing from the cuts. And yet again we have seen no meaningful increase to government pensions and payments.

“Moreover the Government has failed again today, like just about every other government in recent decades, to fundamentally re-engineer the Budget so it’s sustainable over the long term. Instead it’s kicked the can down the road, seemingly unfazed by the sea of red in the forward estimates. Fingers crossed that a growing economy, tax bracket creep and high commodity prices will save the day. But it’s quite possible they won’t, in which case critical expenditure like health, education, the NDIS, income support payments and the environment will all be increasingly underfunded in coming years. And that would be unforgiveable in a country as rich and fortunate as Australia.”

Media release – Master Builders Tasmania, 14 May 2024

Federal Budget highlights why High Vis Army is critical

Master Builders Tasmania CEO, David Clerk, says the Federal Government’s continued focus on building more housing is welcome, but without the workforce, the homes simply won’t get built.

“We welcome the Federal Government putting its money where its mouth is and providing funding to build the housing we need in tonight’s budget,” Mr Clerk said.

“We also support additional funding for more fee free TAFE and VET training, support for pre-apprenticeship placements and streamlining of skills assessments for migrants. All these initiatives will help with chronic workforce shortages.

“Under the previously announced National Housing Accord, Tasmania could be expected to build over 25,000 new homes over five years. Without a bigger workforce, we will fall well short of this target. According to our forecasts, Tasmania could be up to 10,000 dwellings short of this target over the next five years.

“In addition to that, we’re forecasting a 20 per cent drop in new dwelling starts in Tasmania next financial year because of affordability issues and workforce shortages.

“That’s why the High Vis Army initiative is so important. This is a joint initiative of the building and construction sector and the Government, aiming to boost the number of people in the sector.

“It’s vital to increase the building and construction workforce from 26,000 workers currently to around 40,000 so Tasmania has the capacity to build the houses we need as well as the roads, commercial facilities and houses that we also need.”

Media release – TasCOSS, 14 May 2024

2024/25 Federal Budget Initial Analysis

The following may be used as direct quotes from Adrienne Picone, CEO, TasCOSS:

  • There were many welcome announcements in this Federal Budget, however TasCOSS believes the Government got its priorities wrong, particularly choosing not to increase JobSeeker, and providing universal rather than targeted cost of living relief.
  • In this ongoing cost of living crisis, it was a missed opportunity to put people with the least, first.
  • Increasing the rate of JobSeeker would have been the simplest investment the Government could have made to reduce poverty in this country and it chose not to do so.
  • People receiving these payments already know a lot about ‘restraint’ – only eating one meal a day, skipping essential medication and foregoing heating in a desperate bid to keep a roof over their heads.
  • In addition to the Government appointed Economic Inclusion Advisory Commitee, Australia’s leading economists urged the Prime Minister to increase income support payments, noting the impact on inflation would be negligible.
  • The decision to increase the Commonwealth Rent Assistance by 10% is welcome but it falls well short of what is really needed and based on median rents means private renters will still be in deep housing stress because their base rate of payment is so low. Even with the increase, many will be paying half their income in rent alone.
  • Experts agree also lifting the rates of JobSeeker and other income support payments is essential to improving rental affordability.
  • Additional funding for social housing and homelessness is welcome but we need bolder action: Tasmania has the worst rental affordability, the lowest share of social housing, and the most homeless people in recent history.  We need a temporary cap on rents, governments to build more social housing, and a curb on tax incentives for property developers.
  • We welcome bill relief for those struggling to afford their energy bills, but the $300 energy rebate announced for every household is untargeted, helping thousands of Tasmanian households who need it least. Relief measures should be targeted and support those with the greatest need.
  • One off energy bill relief is unsustainable – what we need to see is long term structural change including through investments in energy efficiency upgrades especially for low income households.
  • We welcome the commitment to fund the Fair Work Commission’s wage increase for the early childhood education and care workforce, which will help attract workers to an essential industry that needs more workers.

Media release – TCCI, 14 May 2024

TCCI disappointed by federal budget’s half-hearted support for business

The TCCI is the voice of business and says that tonight’s federal budget does not go far enough to to tackle the major issues Tasmanian businesses are facing.

TCCI CEO, Michael Bailey, said a number of issues were impacting businesses.

“We talk to businesses right across the state every day and conduct a detailed survey every three months,” Mr Bailey said.

“Businesses tell us the main issues are the cost of doing business, the cost of living, skills shortages, insurance costs, interest rates and red tape.

“While the budget does offer some cost-of-living relief, it’s overlooked most of the other key issues affecting business.

“What little support there is in the budget for businesses seems half-hearted.

“We had hoped that the much-hyped Made In Australia initiative would have provided something tangible for Tasmanian business, but even this seemed more of a thought bubble than an actual strategy.

“While there are some good initiatives in this budget, the business community would like to see the Federal Government make more of an effort to support the engine room of the economy.”

Newsletter item – Shelter Tas, 15 May 2024

Federal Budget 2024

Last night’s Federal Budget announcements contained some welcome investment to boost social and affordable housing supply, but Shelter Tas is concerned that there is no significant increase in funding to meet the scale of demand in the community, despite the new National Agreement on Social Housing and Homelessness (NASHH) providing some certainty for funding for frontline services over the next 5 years.

Key Budget initiatives include:
$9.3b for the 5-year NASHH for States and Territories, this includes the ERO payment
$1b extra in crisis accommodation for women and children fleeing domestic violence, and for young people
$1b for infrastructure to get homes built sooner.

No update was provided on the National Housing and Homelessness Plan and no timescale for its implementation.

It was pleasing to see a 10% increase in Commonwealth Rent Assistance to help renters living in housing stress. Shelter Tas will be seeking further information on how this funding will be distributed, and the impact this will have on the Tasmanian housing crisis.

For more information on the federal Budget, you can read the Treasurer’s 2024/25 Budget speech, the 2024/25 Budget papers (including media release), as well as media statements from National Shelter and CHIA via these links.

National Shelter, Homelessness Australia and CHIA will be holding a joint briefing on the Budget’s housing and homelessness announcements on Tuesday 21 May, from 1:30pm-2:30pm. This will be a free online event with time for Q&A, but registrations are essential. Click here for more information and registration.