A group of over 25 community sector organisations have issued a united call for this year’s Federal Budget to put reducing poverty and inequality at the core of its purpose.
The organisations include Mission Australia, The Salvation Army of Australia, YWCA Australia and Jobs Australia.
“At a time when public budgets are under stress and key services such as health and education are underfunded, the first priority should be to make sure we have the revenue we need to fund our schools, our hospitals, the social safety net and vital community services to support vulnerable people in our community, including those newly arrived, as well as meeting our international obligations to those overseas,” said the organisations.
“The May Budget should realign spending priorities and strengthen the tax base rather than deliver further spending cuts. Tax cuts should be off the table until the government can be confident it can fund essential services.
“Ultimately, comprehensive reform of the tax system, not ad hoc increases in taxes, is needed to make sure governments have the revenue they need. We must ensure revenue is raised in a way that is fair and avoids harming the economy.”
The organisations believe the best approach is to close or reform tax concessions that are not fit for purpose, including negative gearing, capital gains tax concessions, tax breaks for superannuation, and the use of private companies and trusts to avoid tax, including shifting profits offshore.
“We stand together in the belief that the government must not repeat the mistakes of the last two budgets, which focused almost exclusively on cutting community programs and services whilst doing little to secure the revenue required to fund essential services,” said the organisations.
“We cannot have another Budget that attempts to achieve repair on the backs of people doing it the toughest in our community. This Budget must correct those wrongs by taking off the budget books harmful proposals such as the planned cuts to family payments and the four week wait for income support for younger people.
“This Budget cannot see any further retreat by the Federal government or passing of responsibility to the states in areas of shared responsibility, such as health, education, housing and community services. The $80 billion cuts to states’ health and education budgets over the next decade should be fully reversed. A down-payment on an affordable housing growth fund should also be delivered.”
The organisations have called for the Federal government to get behind the efforts of people trying to get a job in a challenging labour market, providing better support through greater targeted assistance and training and wage subsidies, particularly for people out of paid work long term.