CORRECTION: The original version of this summary included a point stating that young parents under 19 are ineligible for Parenting Payment Single in the new budget. This point is inaccurate and at this point it does not seem that the budget has changed the age requirement of parents on Parenting Payment Single. Yfoundations apologises for the discrepancy.
Summary
Although the budget makes few increases in many programs that
affect and support homeless/at-risk young people, Yfoundations believes cuts could have been
much worse as the Government was promising the 'toughest budget in 25
years.'
National Affordable Housing Agreement (NAHA)
For the first time the budget gives forward estimates of the NAHA, which funds SHS (formerly SAAP). There is no projected increase in funding for the NAHA between now and 2015/16. Yfoundations will be engaging in advocacy efforts to help push for increases.
Homelessness funds quarantined from cuts
Yfoundations has been given no indication as to whether or not the time limited National Partnership Agreement on Homelessness will be re-funded or not. The final installment of the $151 million over the course of 2012/13 was quarantined from funding cuts.
Changes to taxation bands
Resulting from the Carbon Pricing Mechanism, the tax free threshold has been increased from $6,000 to $18,200. This change is positive for many young people on low wages who are currently required to pay taxes if making more than $6,000 per year. Under the new threshold they will no longer have to pay tax unless making $18,200 or more.
National Disability Insurance Scheme (NDIS)
A great success story of this budget is the NDIS which will commence in 2013 and has been allocated $1 billion over the next four years. The scheme will improve supports available to young people with disabilities and increase the ability of families to cope with a child's disability. The scheme aims to provide more accurate and suitable funding based on client need with the introduction of individualised funding packages. Yfoundations joins the disability sector in offering cautious support for the NDIS as it seems the scheme needs much greater capacity to be able to meet the needs of the target population.
Increased age eligibility for ABSTUDY
The age eligibility for ABSTUDY, the benefit program for Aboriginal and Torres Strait Islander young students and apprentices, has been increased to 21, with all ATSI students and apprentices under 21 being transferred to Youth Allowance. Yfoundations is not yet ready to make conclusions on how this will affect the benefits received by these young ATSI students and apprentices.
Supplementary Allowance addition to Youth Allowance
Although non-pension allowance payments were not increased by the $50 per week the sector called for, a lump-sum payment plan was implemented where singles are eligible for an additional $210 and couples an additional $350 per year. While this equates to just a $4 per week for singles, it is a recognition that income support payments are inadequate. The lump-sum payment plan will allow recipients to put the supplement towards an item or items that are too difficult to budget for and at this point it seems there are no restraints on what the funds can be used for. The lump-sum payments will occur twice per year with the first installment in March 2013.
Increase in liquid assets test for Youth Allowance
The budget has provided a benefit to young people on Youth Allowance by increasing the amount of liquid assets (cash) a young person is allowed to have at their disposal before their rate of income is affected. The amount has been doubled from $2,500 to $5,000. Yfoundations does not believe this increase will affect many of our target population as their liquid assets do not typically amount to this much.
Increases to Family Tax Benefit Payments
Important for at risk families, the Family Tax Benefit Part A has been increased by $300 per year for recipients with one child and $600 per year for recipients with two or more children. This increase will hopefully have a beneficial impact on low to moderate income families by decreasing financial stress and thus helping to alleviate the possibility of family breakdown.
Cuts to Single Parent Pension
Single unemployed parents are worse off in the new budget with payments being reduced by almost $60 per week. Under the new budget, single unemployed parents will be transferred from the Single Parent Pension to Newstart Allowance when their youngest child turns 8 years old, as opposed to the current child age requirement of 16. This change will also require parents to engage more heavily in job search requirements than under the Single Parent Pension.
Asset write-offs for small businesses
When small businesses purchase new assets less than $6,500 they can now write them off in taxes. This benefit will provide these businesses, mainly traditional and trade businesses, with extra capital and hopefully encourage them to hire additional employees. Since young people are traditionally employed by small businesses this could have the effect of more employment and apprenticeship opportunities for young people.
$3 million for the National Children's Commissioner
To be located in the Human Rights Commission, $3 million has been allocated for the creation of a National Children's Commissioner. Although legislation explaining the Commissioner's responsibilities has yet to be published, at this point it seems the strongest role of the Commissioner will be his or her advocacy power in speaking to the press on the behalf of children & young people. Most likely, as with the NSW Commissioner for Children & Young People, the Commissioner will be responsible for making a statement on how new legislation will affect children and young people. Yfoundations supports the creation of the Commissioner as it will provide a strong public voice for the issues effecting children and young people, however we are disappointed that the Commissioner will not be the guardian for unaccompanied refugee and migrant minors, as was advocated for by the Greens.
No new investment in homelessness or affordable housing
Yfoundations' major concern in this budget is the complete lack of attention to new funding of homelessness and/ or affordable housing initiatives and the lack of action to address the issue of housing affordability in general.
For all questions and comments around the 2012/13 Federal budget please contact Grace Stubee at grace@yfoundations.org.au.
| 
