What you missed from the Federal Budget 2014
FOREIGN aid, immigration, the arts. You know the main things in this year’s Budget, but what about the things you missed? Here are the clangers you didn’t notice.
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IT’S being hailed as the toughest budget in a decade with a $7 payment to see the doctor, debt tax on high-income earners and massive cuts to family benefits all due to become a reality.
But hidden behind the headline grabbing changes are a host of other measures designed to bring the government back into surplus. Here are some of the crucial items you might have missed:
MASSIVE FREEZE ON FOREIGN AID
They might call it “reprioritising” but foreign aid is one of the biggest sacrifices in this year’s budget, providing $7.6 billion worth of savings as the government freezes the amount of money Australia gives in overseas development assistance (ODA).
MORE: What the Federal Budget 2014 means for you
It includes spiking plans to join the African Development Bank Group and International Fund for Agricultural Development, as well as capping ODA at five per cent of the Department of Foreign Affairs and Trade’s budget.
World Vision Australia CEO Tim Costello said it’s a massive blow for a sector that is already struggling.
“It is disheartening to see that the poorest people in the world will foot the bill for Australia’s fiscal repairs,” he said.
Charity groups are also reeling with Australian Council for International Development executive director Marc Purcell saying it’s “incredibly disappointing” to see people struggling on $2 per day hit even harder by Budget cuts in Australia.
MORE: Nine things you won’t believe they’re cutting
ARTS BUDGETS SLASHED
No matter which way you cut it, the arts community in Australia just got a bollocking. The government has pulled a whopping $97.1 million in funding over four years which had been slated for the arts.
Screen Australia, the primary body for local film and production is set to lose $25.1 million. The $10 million Australian Interactive Games Fund will also be killed.
Meanwhile, the Australia Council, which provides funding and grants to local artists, will have $28.2 million slashed from its ledgers. The Attorney-General’s department will also drain $33.8 million in arts funding.
Giving people money to throw specks of paint at a canvas may seem frivolous in comparison to healthcare cuts but let’s not forget its place in a national culture. President Lyndon B Johnson, on creating the US National Endowment for the Arts said: “Art is a nation’s most precious heritage. For it is on our works of art that we reveal to ourselves and to others the inner vision which guides us as a nation. And where there is no vision, the people perish.”
Screen Producers Australia executive director Matthew Deaner said: “Their investments trigger millions of dollars of local and international financing into productions which employ thousands of Australians.”
GONSKI IS GONE-SKI
The Gonski school funding agreement will be unwound, amid plans to slash $80 billion from health and education funding over a decade.
This includes cutting $20 million from the Australian Institute for Teaching and School Leadership, scrapping a $21 million centre for quality teaching and learning Labor had promised, reducing funding for the Australian Curriculum, Assessment and Reporting Authority, as well as a host of other measures that will affect students and teachers.
States have hit back at the news this morning, claiming federal funding cuts from health and education are a “hospital pass” that assumes they will pick up slack.
“What they did was pass a spending problem to the states — they didn’t provide the income solution,” New South Wales Premier Mike Baird told ABC radio.
MORE: Your Budget questions answered
COUNTLESS JOBS TO GO
Treasurer Joe Hockey has said 16,500 jobs will go but there are fears this number could be as high as 25,000 once budget cuts, asset-sell offs and outsourcing are taken into account.
The Australian Tax Office will take the lion’s share with 4700 positions gone in a series of wideranging cuts which will affect organisations from the National Library to the Defence Force.
Community and Public Sector Union national secretary Nadine Flood said the Budget was a “con job” for workers with organisations like the Australian Quarantine and Inspection Service, Customs and CSIRO already groaning under their workloads.
The public broadcaster is also in the firing line, with the ABC losing $120 million from their bottom line over four years. It comes on top of cuts to SBS and the Australia Network and ABC managing director Mark Scott said it would inevitably lead to redundancies and fewer services.
“We will need to make funding cuts while trying to also save money to invest in new priorities to ensure the ABC remains a compelling feature of the Australian media landscape.”
MORE: Abbott breaks election promise with cuts to ABC and SBS
MAJOR SPENDING ON SCHOOL CHAPLAINS
Nearly a quarter of a billion dollars went to a program that provides chaplains for schools, despite the fact its future is before the High Court.
The school chaplain scheme will provide $243.8 million over four years to allow schools to apply for a $20,000 grant towards the cost of employing a chaplain. An additional $4000 is available to schools in remote areas.
But Queensland father of six Ron Williams has fought the issue in court, saying “there is no place in public schools for any form of missionaries or evangelists or anything that isn’t secular.”
Experts think the case will have far-reaching effects for the Commonwealth’s ability to provide funding for a range of programs. Even the Scripture Union’s chief executive Peter James acknowledged it’s controversial.
“People are divided on it. But I am not sure that people who are opposed to the program necessarily understand what chaplains do in schools. It’s not a clerical role, it’s not a theological role — it’s a caring role.”
MORE: The Federal Budget, a five minute guide
NO MORE CONTIKIS ON THE GOVERNMENT
Currently, if you’re overseas while you’re studying, you still collect Youth Allowance. Not anymore.
The government will not pay you for time spent overseas unless you’re on exchange with another educational institution or it’s a family emergency. Wandering through Hogwarts at the Harry Potter theme park does not count as exchange.
MORE: Uni changes to hit students hard
BIG BUCKS FOR IMMIGRATION
Indonesia will receive nearly $87 million over three years to manage the asylum seeker population living in the country, as the government turns their attention to processing the back log of asylum seekers in Australia.
The government claims the success of Operation Sovereign Borders has reduced the number of boats which will allow them to save $2.5 billion over five years and close nine detention centres around the country. One in South Australia could even be turned into an aged-care facility, according to Assistant Infrastructure Minister Jamie Briggs.
Migration Institute of Australia’s President Angela Chan said while some of the changes are positive, there are some “dark shadows” that need explaining.
“While the Institute is pleased that the Family Stream will focus on meeting the increasing demand for close family reunions by having additional partner and child places, it is alarming that these additional places will be made available as a result of the cessation of new applications from the other family and parent (non-contributory) places,” she said.
Overall, Australia’s migration intake will remain at 190,000 in the 2014/15 financial year.
ROUGH DEAL FOR ENTREPRENEURS
Plans to scrap eight programs worth $845 million over five years will cut the local start-up scene and send more Aussie entrepreneurs to Silicon Valley, according to advocates.
The Budget includes plans to scrap Commercialisation Australia, which has provided more than $200 million in funding to local start-ups, as well as the Innovation Investment Fund, which connects start-ups with venture capital.
Instead, an Entrepreneurs’ Infrastructure Program will cost $484.2 million over five years but
start-up accelerator River City Labs boss Steven Baxter is not convinced.
“Australia invests a fraction of what other developed countries do funding tech start-ups, and the budget has provided no solid proof that the government intends to rectify this,” he said.
The government also revealed plans to stop funding the technology research body National ICT Australia (NICTA) from 2016.
OTHER THINGS YOU MIGHT HAVE MISSED:
• $90 million to find missing Malaysia Airlines Flight MH370. It’s the first time the government has put a number on the search cost.
• Up to $500 million for a new icebreaker ship and $9.4 million to maintain Australia’s presence in Antarctica.
• The School Kids Bonus will be scrapped.
• Three kids is no longer a “large family.” It’s been redesigned to be one with at least four kids before you start getting the large family supplement on Family Tax Benefits.
• $19 million over four years will go to the Australian Drug Commission to continue the Good Sports Programme aimed at building a culture of responsible drinking at a grassroots level.
• It’s been revealed the cost of someone losing a few bits of paper at the WA Senate election cost $23.2 million. No wonder heads rolled at the Australian Electoral Commission over the debacle.
What do you think of the Budget 2014? Leave a comment below or continue the conversation on Twitter @newscomauHQ
Originally published as What you missed from the Federal Budget 2014