What’s in the budget for women? Here’s the good and the bad 

What’s in the budget for women? Here’s the good and the bad 

budget

The Albanese government has delivered its 2023-24 federal budget, claiming that women are “front and centre” of the spending initiatives announced.

There’s no doubt there are some key funding commitments in the budget that will make a tangible difference to the lives of women, especially single mothers, who are often among the most vulnerable people in our society. The abolition of ParentsNext and expanding the criteria for the single parenting payment are both great steps. 

There has also been some steps taken to improve the economic security of people aged 55-59 who are on the JobSeeker payment. They have been given access to the higher basic rate previously reserved for those aged 60. It’s a good boost for this cohort, especially for women who often face greater barriers to paid work. 

However, there are some key policy areas that are lacking focus and funding, especially when it comes to women’s health, and – as we are very interested in here at Women’s Agenda –  the issue of women being disproportionately impacted by climate change and natural disasters. 

The Minister for Women and Minister for Finance, Senator Katy Gallagher, said the government was committed to improving the lives of women, but she also acknowledged it wasn’t possible to solve gender inequality in one budget, or indeed one term of parliament. 

“Investing in women’s safety is indisputable, investing in women who are most disadvantaged is the right thing to do, investing in programs that help get women back to work is common sense, and investing in wages for women is good economics,” Gallagher said.

So here’s our breakdown of the key commitments made to women:

The Good

More support for single mothers 

The government is stepping up its support for single parents, allocating $1.9 billion over 5 years to expand eligibility for the Parenting Payment (Single). The eligibility now includes single parents whose youngest child is aged 14, up from aged 8. The vast majority of these parents – 91 per cent – are women.

The base rate of this payment sits at $922.10 per fortnight, and the expanded eligibility means around 57,000 eligible single parents will transition to Parenting Payment (Single). 

The abolishment of ParentsNext 

The government is ending the ParentsNext scheme, which applies to about 98,700 parents who have children aged nine months to six years and have not been in paid in employment for six months. This scheme, first introduced by the previous Coalition government, largely impacted single mothers and had been roundly criticised for its strict mutual obligations, which were deemed punitive and damaging for single mothers. 

The scheme will end from next year, while mutual obligations for the scheme have already been stopped. The government will introduce a replacement, voluntary program in July 2024 after a period of consultation.  

A (small) increase in the rate of Commonwealth Rent Assistance 

The budget commits $2.7 billion over 5 years to the Commonwealth Rent Assistance (CRA) program, to increase the maximum rate payable by 15 per cent from 20 September 2023. 

About 1.1 million households on the maximum rate of the CRA will receive an increase of between $15.73 per fortnight and $31.36 per fortnight. It’s a small boost for single women, who make up 49 per cent of CRA recipients. 

A pay rise for aged care workers

The budget has committed $11.3 billion over four years to fund a 15 per cent interim pay rise for workers in aged care, including for nurses, personal care workers, cooks, recreational officers and home care workers. 

It comes after the Fair Work Commission made the decision to provide workers with the increase. The pay rise will benefit about 250,000 workers who are among the lowest paid in the country, many of whom are women. 

Reform for child support for single parent families

The government has committed $5.1 million over 5 years to implement recommendations made by the Joint Select Committee on Australia’s Family Law System. 

Some of these recommendations include establishing a Child Support Stakeholder Consultation Group, commissioning research into the cost of raising children, reviewing compliance in the child support scheme, reviewing the child support scheme and Family Tax Benefit to look at how single parents are supported after separation, and looking at how parents with caring responsibilities can be better supported where private collect arrangements have broken down. 

More investment in apprenticeships and traineeships for women

The budget allocates $5 million over 3 years from 2024-25 for grant funding for organisations with expertise in supporting women in the workplace and women in male-dominated trade apprenticeships.

Funding for preventing violence against First Nations women

For the first time, the budget has allocated specific funding – $194 million over four years – for the priorities that are emerging from the development of a dedicated, stand alone national plan to end violence against First Nations women and children. 

Some of the areas that will be addressed include culturally responsive healing programs, addressing immediate safety concerns of women and children, and funding community-led safety services. 

Funding for the e-Safety Commissioner 

The budget allocates $134.1 million over 4 years for the Office of the eSafety Commissioner, whose role is to improve safety outcomes for Australians online, including women’s safety online. A key area of focus for the eSafety Commissioner includes addressing technology-facilitated abuse and supporting victim-survivors.

The bad

Not enough to address the crisis of violence against women

$589.3 million has been allocated in this budget for initiatives that fall under the National Plan to End Violence against Women and Children 2022–2032. The goal of this plan is to end violence against women and children in one generation. 

That figure comes in addition to the $1.7 billion allocated in last year’s October budget. 

The $194 million over four years for the national plan to end violence against First Nations women is included in the $589.3 million figure. 

This funding falls short of what peak bodies in the domestic violence space have indicated is needed to address the crisis of violence against women –  $1 billion every year.

Students and working age people on JobSeeker are being left behind 

The budget doesn’t give much support to younger people who depend on JobSeeker, Youth Allowance, Austudy and other income support payments, delivering a small increase for eligible working age people and students of $40 per fortnight. 

This equates to about an additional $2.85 per day, bringing the total payment up to about $52.85 per day. 

This falls far short of the increase recommended by the Australian Council of Social Service, who say at least $76 per day is necessary. 

Also included in the budget is a small boost for single people aged 55 to 59, who have been on JobSeeker for 9 or more continuous months. This group will be eligible for a higher basic rate, to match those who are over 60. About 55 per cent of this cohort are women.

Those aged 60 years and older will also receive the $40 increase per fortnight to their basic payment rate.  

No movement on the activity test for the childcare subsidy 

One of the six key recommendations from the Women’s Economic Equality Taskforce was to abolish the activity test for the childcare subsidy. The activity test for parents effectively limits access to early childhood education and care for some of the most disadvantaged children in Australia. 

The government did not refer to the activity test in its Women’s Budget Statement and has made no moves to abolish it. 

In last year’s October budget, the government committed to making early childhood education and care more affordable from July 2023. 

No super payments on paid parental leave

Another of the recommendations from the Women’s Economic Equality Taskforce was to provide superannuation payments to parents taking paid parental leave. It’s considered a key measure to reduce the gender superannuation gap, that currently sees women retiring with significantly less superannuation than men.

This budget has not allocated funding for this reform.

No mention of the impact of climate change on women and girls 

One of our key concerns at Women’s Agenda is the disproportionate impact of climate change on women and girls in Australia. This year, we released a report on the topic, hearing first hand from experts and women who have been on the frontline of natural disasters in recent years.

The Women’s Budget Statement does not refer to climate change or natural disasters, or acknowledge the impact on women and girls.

No new commitments for women in STEM programs

There is little commitment in terms of supporting existing women in STEM programs, many of which are facing a period of funding uncertainty.

The government has previously said it would not commit to any new funding in this space until a review at the end of the year is complete. However, advocates have said urgent funding is needed to existing programs can continue. 

No interim pay increase for early childhood educators 

One of the recommendations from the Women’s Economic Equality Taskforce was for an interim pay rise for early childhood educators and aged care workers. The budget has committed to the rise for aged care workers, however it has not done so for early childhood educators. 

On a positive note, the budget does allocate $72.4 million to support the professional development of early childhood educators, and provide financial assistance to educators to complete the practicum required for a Bachelor or Master’s degree in Early Childhood Education. 

A lack of investment in women’s health issues 

The budget provides some funding ($26.4 million) to continue research and data collection activities for women’s health. This includes funding to improve and continue the Australian Longitudinal Study on Women’s Health, and Woman centred care: Strategic directions for Australian maternity services.

However, there are some glaring gaps in funding for women’s health, including:

Dementia

Dementia is the leading cause of death for women in Australia, a fact the Women’s Budget Statement acknowledges. However, there is no specific funding dedicated to dementia research, and how the disease impacts women. 

Access to abortion and reproductive services 

There is no specific funding for improving access to abortion and reproductive services. 

Women living in regional and rural areas of Australia face some significant issues when it comes to accessing abortion and reproductive services, and that has not been addressed in this budget.

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