Five-year funding lifeline for ‘crucial’ Saver Plus program

Expanding a charity savings support program marks the latest cost-of-living support from the Albanese government; for Melissa Hughes it allowed her to ‘start from scratch’.

Melissa Hughes used the federally backed Saver Plus program to recover financially from a relationship wracked by domestic violence. Picture: James Elsby / The Photo Pitch

Australia’s longest-standing savings support program has been handed a five-year lifeline by the Albanese government, expanding a joint effort to boost the financial literacy of low-income households.

Social Services Minister Amanda Rishworth announced the renewal of the Saver Plus program on Friday.

For families like those of Adelaide mother Melissa Hughes it has been life-changing.

A single parent to three children with complex needs, her time is sparse between studying and homeschooling. Financially, she has spent the past seven years recovering from a domestic violence relationship she and her children fled with “the clothes on (their) backs”.

“I was left with over $100,000 taken from me. When that happens your view on money changes,” Ms Hughes said.

“I was starting pretty much from scratch. I’ve come out of quite a lot of financial hardship, coming out of DV.

“It’s really difficult to maintain a positive outlook with that, because it feels like you’re not going to be able to come out of it.”

Saver Plus began in 2004 as a collaboration between the Brotherhood of St Laurence and ANZ Bank, gaining federal support in 2009. The latest grant provides $51.5m for the program to mid-2030.

Melissa Hughes with her three children aged 7, 9 and 14.

Under the scheme, families facing financial hardship have their savings matched up to $500 for educational expenses. Ms Hughes was introduced to it through another family welfare service.

“I’m not scared now … to set financial goals. It has given me confidence to want money, and to feel worthy of having money,” she said. “Last year alone I saved over $8000.

“When we’re looking at the Australian curriculum within mainstream schooling, life skills aren’t really embedded into that, and I think saving and having a healthy relationship with money … is really crucial.”

Teaching her children the same values of financial discipline and time management has become a priority.

“This year we’re really focusing on not touching our savings. Before my eldest son (Jack) gets any money or puts any money into savings, I say to him he needs to look at what it is that he’s wanting to purchase,” Ms Hughes said.

“He does umpiring every week so he gets a little bit of money for that, then he does extra odd jobs on top of his chores around the house.

“What he puts into savings I will match … and he’s paid for half of his Xbox now.”

Ms Hughes is close to completing the first year of her psychology degree; her next life goals will be saving for a deposit and preparing for Jack’s financial independence.

Ms Rishworth spruiked the program, saying: “This funding is vital for those who need help to manage their finances, navigate financial crises and build a stronger, more secure future for themselves, their families and communities.

“We are proud to continue our partnership with the Brotherhood of St Laurence over the next five years, ensuring this important program continues to deliver excellent outcomes for Australians and empower them to take control of their finances.”

Social Services Minister Amanda Rishworth. Picture: NewsWire / Aaron Francis

The scheme has so far supported 64,000 people in saving more than $30m. It also includes coaching and workshops on financial education.

Surveys found 52 per cent of participants could make ends meet after the program, based on the financial discipline and saving accrued, up from 15 per cent, and 85 per cent felt they could provide for their families.

“We’re incredibly proud of the positive difference Saver Plus has made over the past 21 years. It provides life-changing support and critical education that improves financial wellbeing, reduces household stress and builds the confidence of so many Australians,” Brotherhood of St Laurence executive director Travers McLeod said.

“As cost of living weighs heavily on the minds of all Australians – especially at this time of year with back-to-school costs – we’re delighted Saver Plus will be able to provide much-needed financial relief.”