Anglicare Sydney has welcomed Budget measures that aim to increase the personal capacity of the unemployed and vulnerable, but warns that the causes of genuine hardship must be better understood without stigmatising and stereotyping welfare recipients.
The Budget, brought down in Canberra by Treasurer Wayne Swan, makes changes to welfare policy, particularly for those on middle incomes.
The School chaplaincy programme, speculated to be scrapped, has actually been expanded.
A promised increase in funding of more than 200 million dollars, will provide for chaplains in more than 3,500 schools in the next three years.
Open to all faiths, schools will be able to recieve up to $60,000 funding to establish or expand chaplaincy services.
Welfare changes
"The budget has a significant focus on jobs and employment, particularly for the long-term unemployed among whom the Treasurer said there were those who were 'unwilling, unskilled or untouched by the dignity of work", says Sue King, ANGLICARE Sydney's Director of Advocacy and Partnerships.
"The reality is that the government's own research shows that the 'unwilling' make up a tiny percentage of the long-term unemployed.
"Most of those on unemployment and other welfare benefits are there not because they deny the dignity of work, but because they are simply unable to work due to disability, illness, mental health issues or a range of such complex factors combined.
"The additional $2.2 billion funding directed to mental health services announced last night is very welcome and is actually more likely to build capacity, and address the root causes of some of Australia's long-term unemployed than the stringent welfare compliance measures announced elsewhere in the budget.
"Additional funding to support emergency relief centres and provide financial counselling will also boost the capacity of vulnerable families and assist people with complex needs transition into work.
"This is particularly important given the increasing demands we are seeing at our eight emergency relief centres throughout the Sydney Diocese.
"However, we are concerned that the $2 billion freeze on family payments and dependent spouse rebates come at a time when we are seeing unprecedented rises in the cost of living which will be compounded by projected rises in interest rates.
"One of the most significant challenges facing Australia is the ongoing housing affordability crisis, and there was nothing in this evening's budget speech about how public housing shortages and spiralling private rents will be addressed.
"A significant area of investment over the next three years will be the introduction of a National Disability Insurance Scheme. This long overdue and much needed solution to address the needs of some of the most vulnerable Australians was also a notable omission in last night's budget speech."
Interest rates higher
The AMP, in its Budget Review, also sees interest rates trending higher.
"This Federal Budget intends a significant fiscal tightening averaging circa 2% per annum for the next 2 years. This should help mitigate some of the upward pressure on interest rates over the medium term, but appears insufficient to delay the RBA raising interest rate in the short term. The RBA appears determined to raise interest rates a further 0.25% in coming months." the AMP said.
