Federal Budget

• Your input into the 2009-10 Federal Budget
• Previous Federal Budget highlights

2008-09 Federal Budget

Given the re-negotiation of the Commonwealth State Territories Disability Agreement (CSTDA), this was never going to be a bumper budget for disability. But there was one surprise announcement in the Federal Budget about reforms to Carer Payment (child) eligibility.

Carer Payment (child) eligibility

We welcomed the announcement of $273.6 million to improved support for carers of children with a disability or severe medical conditions. These changes are in response to the recommendations made by the Carer Payment (child) Taskforce report, which former AAFCD CEO Michael Gourlay participated in.

New changes to the eligibility criteria and assessment process for Carer Payment (child) will be implemented from 1 July 2009. The Carer Payment (child) is up to $546.80 per fortnight.

The changes to Carer Payment (child) include:

• New eligibility criteria for Carer Payment (child) that will see an additional 19,000 carers of children under 16 years with profound disability or illness eligible for the payment;
• A single assessment process, based on the level of care required, for Carer Payment (child) and Carer Allowance;
• Access to the payment for short-term or episodic care and more generous arrangements for carers of children in hospital to retain their payment; and,
• Improved transitions between Carer Payment (child) and Carer Payment (Adult).

Other 2008-09 Federal Budget initiatives include:

• $20 million dollars over four years for carers who have experienced a catastrophic event involving a young child through the Carer Adjustment Payment of up to $10,000;
• $428.1 million for carer bonus payments for Carer Payment ($1,000) and Carer Allowance ($600) recipients to be paid by the 30 June 2008;
• $100 million to be provided in 2007-08 to state and territory governments to support older carers through accommodation for their children with a disability;
• Development of a National Disability Strategy;
• $114.5 million over four years to establish 38 child care centres, including six autism-specific centres (as part of the Government's plan to establish 260 child care centres);
• The $500 utilities allowance will be extended to recipients of the Carer Payment and Disability Support Pension;
• The $132 telephone allowance will be extended to recipients of the Carer Payment for those with internet connections;
• A 50% refundable tax-offset for key education expenses (maximum rebate $375 per primary school child, $750 per secondary school child) for families receiving Family Tax Benefit (Part A); and,
• Confirmation of the transfer of $901 million from the Disability Assistance Package to the CSTDA.

While we welcome these announcements, there is still a lot more that needs to be done. We will continue to urge the Federal Government to use the CSTDA re-negotiations to fix the widening gaps in the service system, particularly in relation to the availability of supported accommodation and aids and equipment.

We hope the Rudd Government will ensure that every available dollar of government funding to support children and adults with a disability and their families is well targeted and well spent.

For more about the 2008-09 Federal Budget visit http://budget.australia.gov.au/

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Your input into the 2009-10 Federal Budget

Each year in May, the Federal Budget is announced and it has very important ramifications for families of children and young adults with a disability across all areas of Australia.

While much of the media attention on the budget tends to be concentrated during the period immediately before and after the budget is delivered, the cycle of decision making for each budget begins much earlier, almost immediately after the previous one is handed down.

For those of us involved in advocating for positive budget outcomes from government, we need to be organised and pro-active in putting our ideas to key government decision-makers (both the politicians and staff of government departments) as early as possible in the budget cycle sometimes up to 10 months before the budget is handed down.

If you have ideas and suggestions for what the 2009-10 Federal Budget should deliver for families of children and young adults with a disability, please don't hesitate to contact us.

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Previous Federal Budget highlights

Carer Bonus Payments

Some good news! After a flurry of activity in the media during early-mid March 2008, and other advocacy direct to government decision makers from various organisations including ourselves and Carers Australia, the government announced on March 14 2008 that the Carer bonuses will be paid again this year 'up front' as part of the 2008 Federal Budget. The Government also signaled an intention "put in place a more sustainable system for the future" in relation to the bonus payments.

In correspondence to our Association, the Minister for Finance Lindsay Tanner MP explained:

"There has been a lot of confusion in the media about the carers and seniors bonus payments and I appreciate you sharing your opinions on the issue with me. The budget process is always a time of uncertainty regarding government funding. However, the Government has made an exception to normal budget processes and guaranteed that carers and seniors will not be worse off under the coming budget. We feel that it is important to provide certainty to these important members of our community. The Government understands the enormous pressure carers and seniors are under. Carers make enormous personal sacrifices and through their selflessness an invaluable contribution to the nation. Many seniors are under pressure and after a lifetime of contribution deserve support. The Prime Minister has announced that reports that the Government is axing the payments are dead wrong. We have made it quite plain, that carers and pensioners would not be worse off under the budget when it comes to that bonus system. And for the longer term, one of the challenges is figuring out the best way to give carers greater financial certainty into the future. We need to determine the best way of providing a more secure, predictable basis for carers and pensioners into the long term future rather than having to deal simply with a series of one offs."

The background to this issues includes:

On March 7, 2008 The Australian newspaper published a story that indicated, amongst other things, that the government is planning to "scrap annual bonuses of $600-$1600 paid to carers as its budget razor gang carves deep into welfare programs to cut spending and curb inflation ... Although Families Minister Jenny Macklin refused to confirm the plan last night, she stressed the payments, created by the Howard government and paid for the past four years, had never been written into budget forward estimates and were one-off." In Melbourne's Herald Sun newspaper's on-line news of the same day, the Parliamentary Secretary for Disability, Bill Shorten was quoted as saying, "The Government, which I'm a part of, has a very clear policy that it isn't going to get drawn into debates about what is in or not in the Budget ... I think everyone recognises that when the Howard Government introduced the one-off carers allowance (bonus) something they didn't do was put it in the forward estimates." An on-line article in Melbourne's The Age newspaper included the following from the Deputy Prime Minister Julia Gillard, "I don't want to comment on the budget discussions but I will say this: This is a government that has shown its support for carers and shown its support for improving our health system."

We have regular and ongoing contact with key government decision makers, including Minister Macklin and Bill Shorten. On March 7, our former CEO Michael Gourlay made contact with key government decision makers to emphasise the importance of the bonus payments being retained in the 2008 budget and legislated with a guarantee for payment every year thereafter. He also forwarded the following letter to the editor to various newspapers:

Dear Editor,

Whether it is the wife and carer of a terminally ill aged pensioner or the parent/carer of a child with a severe disability, it is an absolute disgrace for the Australian Government to be considering cutting annual bonus payments to carers, especially when you compare the heartlessness of this move with the generosity of tax cuts about to be handed to people earning $180,000 or more per year.

In July, people earning $180,000+ (which incidentally includes Mr Rudd, Ms Gillard, Mr Swan and Mr Tanner) will be receiving a $50 per week tax cut, or $2,600 per year. This is a substantially bigger tax cut than everybody else earning under $180,000 per year will receive, including people and families who have no choice but to rely on a Disability Support Pension or Carer Payment as their main source of income.

At the same time as those on $180,000 per year will get a gift of $2,600 from the government, Mr Rudd and his colleagues are planning to rip $600-$1,600 from parents of children with a disability and other carers, most of whom live on meagre incomes, all in the name of fighting inflation.

If government is about priorities and these have to include fighting inflation, people on incomes of $180,000+ can afford to give up their bonus and ensure that our nation's much undervalued carers can continue to receive a small token of appreciation from the government and the broader community at budget time.

Michael Gourlay, CEO, Australian Association for Families of Children with a Disability (AAFCD)

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Other Budget Advocacy

In the first budget after an election, especially where there is a change of government, the timing and style of our formal budget input is different to that which occurs in other years. The bulk of the first budget of any new government is usually devoted to the implementation of election promises. Sometimes governments can be persuaded to include some new budget commitments in addition to those they promised in the election, but often it is a case of 'election promises only' in the first budget. As such, in effect, the key advocacy period for the first budget after an election is the lead up to the election and the promises made by the party that wins the election.

Throughout late 2006 and 2007 we were very active in advocating to both the former government and the Labor Party regarding their election promises. This advocacy included a focus on the Commonwealth State Territory Disability Agreement (CSTDA). In mid 2007 the then Minister for Families, Community Services and Indigenous Affairs, Mal Brough, announced some significant new funding and program commitments, including the new guaranteed yearly $1,000 payment for parents/carers of children with a disability aged under 16 years.

The Brough Disability Assistance Package was very significant and shaped much of the policy debate in the lead up to the 2007 election. In many areas (such as the amount of new funding for the CSTDA and the commitment to continue to pay the new $1,000 payment annually to parents/carers of children aged under 16.) the ALP election commitments simply matched what was promised in the Disability Assistance Package.

Prior to the election, all AAFCD members received our detailed analysis of the election policies of the major parties, along with other background policy material related to the election. To ensure that you receive all future special AAFCD mailouts relating to federal policy and advocacy issues, you need to ensure that you join as a AAFCD member. It's free for families and only $20 per year for professionals and organisations.

In January 2008, we made a formal budget submission to the Federal Treasurer, Wayne Swan. This submission was titled 'Disability and Economic Responsibility' and includes a full copy of our pre-election advocacy document 'Disability Futures' as an appendix. You can download a copy below.

AAFCD submission to Treasurer Jan 08 (doc 96kb)

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