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AUSTRALIA

Budget stumbles on social inclusion

  • 13 May 2009

I was excited about the Budget.

I had developed a theory that all of the budget 'leaks' (now better described as 'pre-release'), focusing as they did on getting the many negative messages out of the way, were a political strategy to 'clear the books' for a really big positive announcement or two on budget night itself.

I was also invited by the Prime Minister's Office to attend the 'Treasury Lock Up'. We have sought admission to this without luck in previous budget years, so I was excited about the prospect of attending for the first time.

In the past this has been considered a premier Canberra venue for early budget information. Participants from various organisations are literally locked in a basement in the Treasury at 3:30 pm with the full set of budget papers at their disposal. While mobile phones must be checked in at the door, a Treasury official wanders about the room with a strange antenna that can detect electronic transmissions — just in case someone has secreted away a phone. No one may leave until the Treasurer rises in the Parliament at 7:30 pm.

So I began the trawl through a mountain of papers about 30 centimetres high, on a quest for something big. There were a few candidates: $437 million over four years to assist the disadvantaged to enter university. Increased education and training supplement of $41 per fortnight for some unemployed. Paid parental leave. A modest increase in aged pensions and payments to carers. An increase in the allowable work benefit for pensioners earning private income. An extension of drought relief funding. Better targeting in the Private Health Insurance Rebate and Medicare surcharge. Better targeting of tax deductions for superannuation contributions.

But along with these welcome initiatives, there were some more negative stories. Amid the billions spent on infrastructure: No direct investment in community sector organisations. No social dividend — no guarantee of employment on these infrastructure projects for the unemployed or disadvantaged. A change in indexation for family tax benefit that will see its real value decline considerably over time. No increase in pensions for single parents. No increase in Newstart allowance for the unemployed.

Then, in the 'Budget Overview' document, I found the section on social inclusion and my heart sank. I quote it directly:

'Downturn or not, there will always be people in our society who