Social services, business sectors slam budget, health initiatives ‘unfinished’

Other than the Medicare investment, there is a general consensus the federal budget falls short and leaves a lot of Australians behind.

The federal budget is underwhelming “eye candy” with marginal tax cuts, housing, health and social services organisations say.

Healthcare organisations are glad for substantive boosts to Medicare but say the 30 per cent of Australians living in the regions miss out.

Social services in particular say the budget is inadequate.

“If the budget is the measure of what we value as a nation, then this one falls short in matching the ideal of the ‘fair go’ for the many people across the country who feel left behind,” Mission Australia chief executive Sharon Callister said.

“The measures to date are not enough. This budget missed the chance to increase the capacity of the Housing Australia Future Fund so it could more meaningfully start to meet the enormous and growing need for secure and affordable housing.”

Social services agencies say the budget misses the mark on social and affordable housing. Picture: NewsWire / Max Mason-Hubers

Lifting the number of social and affordable homes to at least 10 per cent of all housing stock and raising the maximum threshold for rent assistance by 60 per cent were options the government failed to take, Ms Callister said.

“We acknowledge that the Housing Australia Future Fund and shared-equity scheme have been positive policies that offer some hope on the housing front, and we also welcome the government’s funding boost for the homelessness and housing peak (bodies), supporting these organisations to continue their vital work to end homelessness in Australia.”

Naturally, unions say Labor’s budget hit the right notes. The Health Services Union says key measures – an $8.5bn boost for Medicare and making reproductive health cheaper for 300,000 women – were “groundbreaking”.

“But there’s unfinished business, with disability workers desperately needing a fair pay rise to stop them leaving the sector in huge numbers,” HSU national secretary Lloyd Williams said.

“We’ll keep working with this government to ensure it has a strong allied health workforce strategy and raise wages in the NDIS above the minimum through new bargaining laws.”

The National Rural Health Alliance (NRHA) says the $8.5bn Medicare boost for an extra 18 million bulk-billed GP visits per year, more GP training opportunities, plus 400 nursing scholarships, are good moves.

Large funding boosts to Medicare have been well received by the healthcare sector. Picture: NewsWire / Nikki Short

“However, the benefits are mostly for city-based and corporate practices that have higher throughput,” NRHA chief executive Susi Tegen said.

“Not all rural practices are able to bulk bill every patient due to the depth, breadth and complexity of services provided and the higher cost-of-service delivery.

“We call on the government to commit to ongoing Medicare reform, flexibility in funding and policy for thin and failing markets.”

In regional NSW, the GP incentives fall well short, Macquarie Health Collective (MHC) says.

Incentives to encourage more (GPs) to bulk bill falls drastically short of what’s needed and will do little to help the current healthcare crisis,” MHC chief executive Tanya Forster said.

“On average, GP practices are running at a loss of about $10 per consultation or just breaking even, forcing many to offer private billing instead of bulk billing.

“GPs are losing money every time they see a patient.”

The multidisciplinary health centre boss argues the government’s investments in urgent care clinics put the cart before the horse.

“Government plans for more urgent care centres will come unstuck as the shortage of doctors will make it difficult to staff them,” Ms Forster said.

The budget has slipped back into deficit. Picture: NewsWire / Martin Ollman

“Instead of announcing more urgent care centres, there should be a focus on attracting GPs to the profession in the first place with a specific regional incentive program.

“The government has a real opportunity to be proactive rather than reactive. We know for every dollar spent on primary care, there is a benefit to the healthcare system of $1.60.”

The Royal College of General Practitioners (RCGP) concurs, saying bulk-billing rebates are too low.

“While it’s clear general practice is central in this year’s budget, we are concerned the plan, which has also been backed by the opposition, won’t deliver the bulk-billing rates they expect because patient rebates are still too low to cover the cost of care,” RCGP president Michael Wright said.

The key measure announced on Tuesday was a modest tax cut. Every worker being paid more than $18,200 gets a cut. Someone on the average $79,000 salary stands to save $5 a week, beginning on July 1, 2026, and then $10 a week in 2027.

From July 1 next year, the tax rate for the $18,201 and $45,000 tax bracket will be cut from 16 per cent to 15 per cent and further reduced to 14 per cent in 2027.

Tax accountancy firm H&R Block says the cuts are an election ploy.

“This budget was focused more than anything on the next election, with a suite of tax policies designed to be eye catching to the maximum number of people,” H&R Block tax communications director Mark Chapman said.

“In particular, the cut in the headline rate of the bottom income tax band (16 per cent now to 15 per cent in 2026 and 14 per cent in 2027) is pure eye candy, although the financial benefit is quite modest.

“The move is expected to counter bracket creep by lowering average tax rates for all taxpayers, especially for low and middle-income earners.

“Under the changes, the average tax rate for a worker on average earnings is not expected to exceed 2023-24 levels until 2031-32.”

While the social services and health sectors are not fully satisfied with Tuesday’s deficit budget, the small business community says a chance to cut red tape and kick start productivity has been squandered.

“With decade-high insolvencies and crippling energy, rent and input costs, this budget had the opportunity to provide a long-term road map for small business growth,” Council of Small Business Organisations Australia boss Luke Achterstraat said.

“Unfortunately, the budget largely recycles existing policies and fails to substantially deliver for the 2.5 million small businesses in Australia.”

Warren McKenzie, managing director of HB11 Energy, said the energy bill rebate didn’t go far enough for households either. saying it “barely scratches the surface” of the financial battle Aussies are facing.

“The budget focuses on the cost of living, but the real issue is much more than a minor tax adjustment,” he said.

“The key factor in the economy is energy. It’s all about supply and demand—if energy costs rise, so will inflation, adding dozens of extra dollars to people’s bills each month.

“A $150 cash power bill relief handout is not going to do anything.”

While Victoria will be a net beneficiary of GST for the first time, the state’s chamber of commerce says “more workplace overreach in the form of banning non-compete clauses and no money to incentivise business via instant asset write-offs or assistance to hire apprentices” were missteps.

“This pre-election budget missed the opportunity to establish a vision for the future but instead saddles us with more debt that will limit our ability to invest in the future,” chamber chief executive Paul Guerra said.

Originally published as Social services, business sectors slam budget, health initiatives ‘unfinished’