WHAT THE BUDGET MEANS FOR FIRST NATIONS PEOPLE

Mishalia Birch (Government & Public Relations Manager / Torres Strait Islander woman) and Siddharth Shirodkar (Principal Economist) reviewed the recent Federal Budget to provide this update.

Over the past two years, we’ve been talking a lot about the inflation and the cost of living crisis affecting so many First Nations families. The government expects inflation to continue to fall over the next 12 months, but price levels remain very high and continue to squeeze most Australians. That’s why the latest Federal Budget is focused on cost-of-living improvements.

The cost of living challenges have flow-on impacts on housing, family stress and community safety. That’s why the budget contains initiatives responding to these pressure points.

The budget also has initiatives that provide for long-term economic development, many of which Aboriginal and Torres Strait Islander people, organisations and businesses will lead. We at IBA are particularly excited by these initiatives and that’s where we’ll start. ?

Economic development

Economic development opportunities will grow significantly over coming years, including opportunities for First Nations-led initiatives. Some of the initiatives the government announced include:

• Support to enhance IBA’s ability to leverage our capital to invest in First Nations communities and businesses.
• $22.7?billion Future Made in Australia package will attract greater private sector investment into Australia’s key industries – including becoming a renewable energy superpower. This would include First Nations-led economic development opportunities on Country, such as the $2.7 million to expand the First Nations Renewable Hydrogen Engagement Fund.
• $777 million to deliver Remote Jobs and Economic Development Program, that will create 3,000 remote jobs over 3 years.
• $68.0 million for First Nations Digital Inclusion measures including to deliver free community WiFi in remote communities.
• $54?million in new paid work placement programs for job seekers with barriers to work to get into businesses and social enterprises.?
• $110 million in First Nations education investment to support First Nations education partnership, policy development and program delivery.

Cost of living

This year’s budget is centred around providing cost of living relief for broad cross-sections of Australians. Many of these measures will directly benefit Aboriginal and Torres Strait Islander families.

The key cost of living measures are:

• Tax cut for all Australian workers. E.g., a person earning $65,000 receives an extra $50/fortnight.
• Everyone will receive $300 off their power bills in 2024-25 with small businesses receiving $325 off their power bills.
• Maximum amount we all pay for PBS medicines will be $31.60; maximum pensioners and concession card holders pay is $7.70.
• $11.1 million to extend the Closing the Gap PBS Co-payment Program to an additional 1,315 PBS medicines to the over 660,000 First Nations people registered.
• One million people on low incomes won’t have to pay the Medicare levy in 2023-24.
• $3 billion in student debt relief for 3 million Australians
• $500 million for 24,100 more elderly Home Care packages
• Lower grocery prices by increasing supermarket transparency and competition
• Superannuation paid for the first time to people on the government’s Paid Parental Leave (PPL)
• More single parents and carers can continue receiving Parenting Payment (Single) over the next five years, supporting our single parents and carers whose youngest child is up to 14 years old
• Single people with a partial capacity to work will be able to stay on the higher rate of JobSeeker Payment for longer, increasing total payments by at least $54.90/fortnight

Housing

The government has announced a range of measures designed to reduce housing stress including:

• Landmark $4 billion agreement with the NT Government to build 270 houses per year for the next 10 years, addressing overcrowding in remote NT
• $1?billion to states and territories to deliver new housing?and connecting roads, sewers, energy and water to new homes
• $1.9 billion in increased Rent Assistance payments which go up by 10% from September 2024.

Family health & safety

Maintaining family health and community safety are priorities in this budget, including many services that will benefit Aboriginal and Torres Strait Islander people:

• $1 billion for crisis and transitional accommodation for women and children fleeing domestic violence and for youth
• $111.1?million in NT essential services for critical health, safety, wellbeing, schooling and justice services in 2024–25
• $94.9 million for vaccination uptake and disease management
• $76.2 million to establish a new evidence-led First Nations prison to employment program that is personalised and holistic
• Funding of $29.1?million over four?years will be provided to First Nations early childhood and education peak bodies to advise the government on education issues
• $12.8m on suicide prevention services in First Nations communities.
• $22.5 million for NACCHO to support First Nations mental health services and access to women’s menstrual products
• $5.9m over two years to establish the National Commissioner for Aboriginal and Torres Strait Islander Children and Young People, coming out of the Wi Yani U Thangani (Women’s Voices) Report
• $4 million over 4 years from 2024–25 to the Australian Indigenous Doctors’ Association to continue to support First Nations doctors to become medical specialists
• $2.4m over three years to implement the First Nations Teacher Strategy to increase the number of First Nations teachers in schools.

IBA is committed to supporting our customers and the communities where they live. We’ll share additional information and economic reviews periodically so please watch out for more content to come.