Concerns vulnerable could be hit by federal budget

SBS World News Radio: The federal budget has been handed down to a mixed reaction from a range of different sectors across the Australian economy and society. Amongst the concerns of many is how the budget will affects those in the nation's multicultural and indigenous communities.

Concerns vulnerable could be hit by federal budgetConcerns vulnerable could be hit by federal budget

Concerns vulnerable could be hit by federal budget

The government is keen to present small business as one of the big "winners" of the 2016 budget.

It's included a company tax rate cut for 870-thousand companies with an annual turnover of less than $10 million and additional tax concessions available to 90-thousand small enterprises.

The Council of Small Business Australia agrees.

CEO Peter Strong says there's much small and medium enterprises, particularly the family-based ones that have become so common in Australia's multicultural communities, will be able to do with the tax rate cut.

"Certainly they'll be looking to employ family members; they'll be looking to pay their family members in some cases. They'll be looking to expand into other businesses that their family members can operate for them in different places. So it really, especially in those family businesses, it really will be something that they'll look at and consider, and we will see benefits of that in the employment area."

Mr Strong says theses business will get assistance from the measures in the budget designed to crack down on tax avoidance by large multinational firms, making things a little fairer.

"I always believe there should be a tax difference between big (business) and small (business) anyway, because big (businesses) have got accountants that can go and cut their tax and claim (as tax deductions and the like) things they shouldn't claim. Certainly, if they go and hunt the tax dodgers, it will send a good message. The small and medium businesses that are doing the right thing, which is most of them, will get the rewards they want, and they won't see somebody getting a reward who's doing the wrong thing."

But not every sector concerned with multicultural Australia is happy with the first budget handed down by Treasurer Scott Morrison.

With the ageing of the population, there's a lot of attention on the government's announcement that it will refine aged care funding.

The CEO of the Council on the Ageing, Ian Yates, says Australian governments of both political persuasions have done a good job with those older people who choose to stay in their homes and live with their families, as favoured in many of Australia's multicultural communities.

But he says they haven't replicated that with those who choose to, or need to, live in aged care, which he says will be needed more and more.

"The bipartisan policy that's been in place since 2012, which has been expanded by this government, has vastly increased the amount of home care packages. And last budget, we had the very welcome announcement that home care packages will, by February next year, be in the control of the consumer- the person who needs the care- rather than the provider...which introduces the capacity to move around, go to the provider of your choice. We need that now to happen in residential care as well. Because, whether we like it or not, people will need residential care."

The government aims to cut the budget deficit from almost $40 billion this financial year to just $6 billion in the 2019/2020 financial year.

And there's fear the vulnerable across a broad cross-section of Australian society could be targeted.

The Australian Council of Social Service CEO, Cassandra Goldie, argues there have already been considerable cuts to welfare payments, and any further cuts would disadvantage those Australians who can least afford it.

"Because our social security system is already so tightly targeted, and previous governments, in this effort to return the budget to surplus, have already abolished a lot of payments which might have been considered not so appropriately targeted...any further cuts in social security essentially are going to be hurting people who are vulnerable."

ACOSS welcomes the government's plan to spend more than $100 million to help those at risk of long-term welfare dependency.

But they reject the trial of the government's controversial cashless welfare card being expanded to a third site.

Currently, the card operates in Ceduna in South Australia and Kununurra in Western Australia.

It quarantines at least 80 per cent of a person's welfare payments, which cannot be used to buy alcohol or for gambling.

Ms Goldie says the measure plays on stereotypes of welfare recipients, particularly Indigenous welfare recipients.

"This is an approach which has been widely rejected, including by the Aboriginal and Torres Strait Islander Social Justice Commissioner himself, Mick Gooda, who travels the country, has been in his role for an extended period of time now, and who is very committed into helping Aboriginal and Torres Strait Islander people into economic opportunities. This is a measure which is really just playing into the stereotype that the problem for people who are on unemployment payments is that they are either lazy or they're not good with their money."

 


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By Sunil Awasthi

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Concerns vulnerable could be hit by federal budget | SBS News