LIVE: Reaction to last night’s federal budget as Australia weathers coronavirus recession

7 Oct 2020 3:44pm

Thanks for following our budget reactions blog

We're signing off our blog following a busy day of budget reaction - thanks for reading.

Here's a quick recap of the main stories of our budget analysis:

- It's Australia's most crucial federal budget in decades. Here's what it means for you.

- Who are the winners and losers from the 2020 federal budget?

- Women were hit hardest by coronavirus job losses and now they're 'left out' of the budget

- Australian partner visa hopefuls 'freaking out' after English language test announced

- Young Australians win under the new JobMaker hiring scheme. But what about older workers?

- Homelessness largely left out of the federal budget, as sector braces for the full impact of the pandemic.

- Australia's net migration intake drops to negative levels for the first time since World War II

You can catch more analysis and reaction via the SBS News social media channels and website. You can also catch SBS World News at 6:30pm AEST tonight and listen to SBS Radio podcasts on demand.

7 Oct 2020 3:08pm

Homelessness largely left out of the federal budget

Further to the response from the homelessness sector, my colleague Maani Truu has this story warning a lack of new funding for social housing in the federal budget will push more Australians into poverty, according to advocates.

Homelessness largely left out of the federal budget, as sector braces for the full impact of the pandemic

7 Oct 2020 2:58pm

Government says record funding for childcare in budget

Another point the Opposition is seeking to attack the government on in the budget is funding for childcare.

This question came from Labor's spokesperson for early childhood education Amanda Rishworth:

"Why has the government racked up $1 trillion of Liberal debt but refused to provide additional support for childcare, leaving behind mums and dads trying to get back into the workforce?

Education spokesperson Dan Tehan said a record $9.2 billion worth of funding worth of funding for the childcare sector had been announced in the budget.

"Importantly - and this seems to have been completely overlooked - this seems to have been completely overlooked - there was $900 million of additional funding for the childcare sector to support them through the pandemic. $900 million of additional funding. And you know what that led to? That led to 99% of all childcare providers remaining viable throughout the pandemic, providing those services to those on the front line," Mr Tehan said.

7 Oct 2020 2:53pm

'Why has the Prime Minister left women behind in this budget?'

Another update on QT, Opposition Leader Anthony Albanese has pressed the government on why women have been 'left behind' in the federal budget.

"I refer to the fact that the burden of the Morrison recession has disproportionately fallen on women. Why is the government racking up $1 trillion of Liberal debt without a plan to support the participation of women in the workforce? Why has the Prime Minister left women behind in this budget?" Mr Albanese said.

Mr Morrison responded: "We are on the road to try and restore, Mr Speaker, the record participation of women we were able to put in place before the COVID-19 recession hit, and the gender pay gap was reduced to its lowest level and those jobs are coming back for women."

"And 60% of the jobs that have come back in measured employment since the pit of the COVID-19 recession, Mr Speaker, have gone to women."

The 2020-21 federal budget has set aside $240 million to boost women's participation in the workplace but Labor and women's advocates say it's not enough.

You can see more on that here:

Women were hit hardest by coronavirus job losses and now they're 'left out' of the budget

7 Oct 2020 2:17pm

Wage subsidy not about 'pitting young people against senior Australians'

Back on the impact of older Australians not being included in the government's JobMaker hiring scheme for 16-35 year-olds.

Labor's Treasury spokesperson Jim Chalmers has questioned the government on the response saying nearly one million Australians on JobSeeker over 35 won't be eligible for the program.

"Why has the government blown out Liberal debt to $1 trillion during this Morrison recession whilst still leaving so many Australians behind?" Mr Chalmers said.

In response, Treasurer Josh Frydenberg said he never thought he'd see the day the Labor party would seek "to make politics by pitting young people against senior Australians."

"We have announced a series of measures last night which are going to help grow the economy and get that unemployment rate down from its peak of around 8% at the end of this year. The measures we took last night are responsible, they are targeted, they are temporary, and they're designed to do one thing - help Australians back into work."

7 Oct 2020 2:07pm

Federal budget response examined during Question Time

We're following Question Time at Parliament House following the release of the government's budget last night.

You can tune in here:

7 Oct 2020 1:52pm

Treasurer backs focus on getting young people back to work

The Treasurer has also fronted the National Press Club for his ritual post-budget address.

Mr Frydenberg was questioned on whether the government's wage subsidy for 16-36 year-olds could result in older workers being discriminated against:

Question: Can you tell me what there is to stop an employer sacking a 50-year-old fulltime worker in order who isn't subsidised in order to hire three young part-time workers who are subsidised?

Mr Frydenberg said businesses would have to meet strict eligibility tests to receive the JobMaker hiring credit.

"Employers will face a double-barrelled test where they'll have to demonstrate that this young person that they are taking on adds both to their payroll and to their head count," he said.

"We have seen with previous recessions and we have seen in this recession that there had been particularly hit hard and they don't necessarily have the same experience or the skillsets that some of the senior workers have and so, therefore, giving them this helping hand now is very important."

Treasurer Josh Frydenberg holds the Budget papers ahead of delivering an address to the National Press Club. Source: AAP

7 Oct 2020 1:27pm

How solid is the government’s economic recovery plan?

SBS finance editor Ricardo Goncalves spoke with PwC chief economist Jeremy Thorpe about the budget.

Mr Thorpe says: "this is a budget for a remarkable time, and I think it's got the tone right."

7 Oct 2020 1:03pm

'If ever there was a time for fiscal stimulus it is now'

Business groups have generally been supportive of the government's federal budget response.

Here's the reaction from Australian Industry Group CEO Innes WIllox: "The 2020-21 Federal Budget handed down by Treasurer Josh Frydenberg is a budget that is right for the times: stimulatory, inclusive, confidence-building and forward-looking. If ever there was a time for fiscal stimulus it is now."

""In the face of these forces, the large boost to household incomes from the bring forward of personal income tax cuts; the additional direct payments to households and the large commitments to infrastructure spending will stimulate aggregate demand and fuel the recovery."

Mr Willox said the group particularly welcomed a 50 per cent wage subsidy for 100,000 new apprenticeships and traineeships and the JobMaker hiring scheme for 16 to 35 year-olds.

You can find out more about that program here:

Young Australians win under the new JobMaker hiring scheme. But what about older workers?

7 Oct 2020 12:49pm

Foreign aid: 'It is not the leadership we were hoping for'

In other reactions, aid agencies have welcomed a one-off funding package for the Pacific region, but are concerned about overall cuts to the foreign aid budget.

The federal government has announced a $305 million COVID-19 response for the Pacific and Timor-Leste.

But alongside this investment, the official aid budget has been reduced to $4 billion, down $44 million from last year, following years of cuts.

Save the Children CEO Paul Ronalds said the pandemic had resulted in a "humanitarian crisis" requiring more assistance not cuts to the aid budget.

"After years of devastating cuts, Australia's foreign aid budget is simply not enough to meet the human needs in the region, nor serve Australia's strategic interests at this time.

Oxfam CEO Chief Executive Lyn Morgain agreed: “The scale of this crisis requires a permanent and long-term increase in funding for Australia’s aid and development response."

7 Oct 2020 12:10pm

Modest improvement in jobs growth

In non-budget economic news, there are some small signs of improvement in Victoria's jobs market after suffering the impact of its harsh COVID-19 lockdown.

AAP’s Colin Brinsden has more:

"New Australian Bureau of Statistics figures show payroll jobs rose by 0.4 per cent in the state over the fortnight to September 19. Over the same period, jobs increased 0.3 per cent nationally.

However, payrolls nationally remain around 4.1 per cent lower than in mid-March when the coronavirus first started to hit the Australian economy and are eight per cent lower in Victoria.

Treasury anticipates the unemployment rate rising to eight per cent by the end of the year compared to the 6.8 per cent rate in August.

It does not expect it to fall below six per cent until the 2023/24 financial year."

7 Oct 2020 11:04am

Will a coronavirus vaccine be ready by next year?

The federal budget assumes that a “population wide vaccine program” for the coronavirus would be “fully in place by late 2021” and second, that international travel has a “gradual recovery” by late next year.

But how likely is it a vaccine will be ready by then - here's one expert's take on meeting the timeline.

Australia's budget assumes a coronavirus vaccine will be ready next year. Is that likely?

7 Oct 2020 10:56am

Homelessness groups warn budget ignores social housing

Homelessness services say the government has failed to invest in social housing and warned against future cuts to services in the budget.

Mission Australia CEO James Toomey said an ongoing lack of investment in social housing and absence of a national plan to address the problem would push more people into homelessness.

“It is shocking that the Federal Budget hasn’t done enough to commit to long-term investment to address the serious shortage of social homes in Australia," he said.

Homelessness Australia Chair, Jenny Smith also said the budget revealed plans to slash a further $41.3 million from homelessness services from July 2021.

"[The] budget is devastating. In a year with huge increases in unemployment creating a surge in rental stress and homelessness, the Federal Government has chosen to slash homelessness funding," she said.

7 Oct 2020 10:15am

'Budget abandons people seeking asylum and refugees'

The Asylum Seeker Resource Centre has warned the budget fails to address a surge in refugees and asylum seekers now dependent on their services.

The Melbourne-based charity says it has seen a 400 per cent increase in people requiring emergency relief since the pandemic and recession took hold.

The group is concerned thousands of temporary visa holders and refugees remain ineligible for income support programs including JobSeeker and JobKeeper.

ASRC Director of Advocacy and Campaigns, Jana Favero said: "we call on the Morrison Government to stop discriminative policies, including deliberate economic neglect and indefinite detention based on the visa status of thousands of people."

7 Oct 2020 9:56am

Boost in funding for Indigenous health welcomed

The National Aboriginal Community Controlled Health Organisation has welcomed increased funding for Aboriginal and Torres Strait Islander health.

They said this includes additional investment in the Indigenous Australians Health Program of $33 million over three years in the budget.

But NACCHO chair Donnella Mills said an opportunity was missed to invest in local clinics across the country.

"NACCHO will continue to press the Government for targeted infrastructure investment in our clinics," she said.

NACCHO also believes the government could do more to support the new National Agreement on Closing the Gap - for more check out this story from our colleagues at NITV.

7 Oct 2020 9:31am

'Budget gives with one hand, takes with the other'

Labor Senator Kristina Keneally has fronted the media with some crisp $50 bills to demonstrate her attack on the government's federal budget response.

Senator Keneally says tax cuts brought forward by the government don't make up for its recent decision to scale back JobKeeper payments.

"Scott Morrison on the one hand is going to give people on JobKeeper a $50 a fortnight tax cut. But on the other hand he's going to take $300 a fortnight away from them," she said.

The JobKeeper wage subsidy program has been extended until March under the government's recovery plan.

7 Oct 2020 9:08am

'The need for resettlement is greater than it's ever been'

The Refugee Council of Australia has also voiced disappointment at the nation's humanitarian program being cut by almost 5,000 places in last night's budget.

The government has slashed the maximum humanitarian intake from 18,750 places to 13,750.

The group's chief executive Paul Power told SBS News the decision was a mistake as the global need for resettlement is more important than ever.

"The need for access to resettlement is greater than it's ever been. You know we're seeing larger numbers of refugees globally than we've seen at any stage in the past 70 years," he said.

7 Oct 2020 8:55am

Migrant advocacy group warns budget 'huge missed opportunity'

The nation's peak-body for migrants has also rued 'missed opportunities' in last night's federal budget.

It revealed the national migration program remains capped at 160,000 places a year and the family stream will be limited.

An English language component is one hurdle partner visa applicants will be expected to pass.

Chief Executive of the Federation of Ethnic Communities Councils of Australia Mohammad Al-Khafaji said this means some partners could miss out because of that requirement.

He also said there were other missed opportunities in the budget:

"There is a huge missed opportunity to address the backlog of permanent residency applications and also backlog of citizenship applications," he said.

"There are a lot of temporary visa-holders here in Australia who are willing to work in critical industries that are affected by COVID-19 such as health, aged care and agriculture industries, who have been crying out for a workforce in exchange for fast-tracking pathways to permanent residency."

7 Oct 2020 8:39am

Labor backs income tax cuts and will consider business measures

Recapping from last night, Labor Treasury spokesperson Jim Chalmers also told SBS News the opposition would support the government's bringing forward of income tax cuts.

But Mr Chalmers is concerned the government's budget plan doesn't do enough to drive down unemployment.

"It's a rare feat to rack up more than a trillion dollars in debt and still leave so many people behind. A trillion dollars in debt and nothing for the care economy, nothing meaningful for climate change, no local jobs programs."

Mr Chalmers also said the opposition would closely consider $35 billion in other business tax breaks: "we're inclined to support the other tax measures, but let's just see that it's properly designed."

7 Oct 2020 8:22am

'A year and a budget like no other'

Our chief political correspondent Brett Mason also had this video breakdown last night on everything you need to know. For those of you tired of reading about the budget, this is another way in:

LIVE: Reaction to last night’s federal budget as Australia weathers coronavirus recession

Follow the SBS News live blog today as we analyse last night's historic federal budget and get all of the reaction from around Australia.

Thanks for following our budget reactions blog

Homelessness largely left out of the federal budget

READ MORE

Government says record funding for childcare in budget

'Why has the Prime Minister left women behind in this budget?'

READ MORE

Wage subsidy not about 'pitting young people against senior Australians'

Federal budget response examined during Question Time

Treasurer backs focus on getting young people back to work

How solid is the government’s economic recovery plan?

'If ever there was a time for fiscal stimulus it is now'

READ MORE

Foreign aid: 'It is not the leadership we were hoping for'

Modest improvement in jobs growth

Will a coronavirus vaccine be ready by next year?

READ MORE

Homelessness groups warn budget ignores social housing

'Budget abandons people seeking asylum and refugees'

Boost in funding for Indigenous health welcomed

'Budget gives with one hand, takes with the other'

'The need for resettlement is greater than it's ever been'

Migrant advocacy group warns budget 'huge missed opportunity'

Labor backs income tax cuts and will consider business measures

'A year and a budget like no other'

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LIVE: Reaction to last night’s federal budget as Australia weathers coronavirus recession

Follow the SBS News live blog today as we analyse last night's historic federal budget and get all of the reaction from around Australia.

Thanks for following our budget reactions blog

Homelessness largely left out of the federal budget

READ MORE

Government says record funding for childcare in budget

'Why has the Prime Minister left women behind in this budget?'

READ MORE

Wage subsidy not about 'pitting young people against senior Australians'

Federal budget response examined during Question Time

Treasurer backs focus on getting young people back to work

How solid is the government’s economic recovery plan?

'If ever there was a time for fiscal stimulus it is now'

READ MORE

Foreign aid: 'It is not the leadership we were hoping for'

Modest improvement in jobs growth

Will a coronavirus vaccine be ready by next year?

READ MORE

Homelessness groups warn budget ignores social housing

'Budget abandons people seeking asylum and refugees'

Boost in funding for Indigenous health welcomed

'Budget gives with one hand, takes with the other'

'The need for resettlement is greater than it's ever been'

Migrant advocacy group warns budget 'huge missed opportunity'

Labor backs income tax cuts and will consider business measures

'A year and a budget like no other'

previous

1of2

next

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