Federal Budget 2024-2025 Summary

The Treasurer delivered the Federal Budget on Tuesday 14 May 2024. Here, we look at the significant measures relevant to the community services sector in Australia, and for the children and families you support.

Community services

A Stronger and More Diverse and Independent Community Sector – Budget investment = $2.4 million over two years from 2024–25
The Department of Social Services is to develop a community sector partnership framework, in consultation with the Community Services Advisory Group. The framework will drive administrative and cultural change across government agencies, to deliver grants that are designed to better serve the sustainability of community sector organisations and ensure better outcomes are achieved in delivering government policy.

Representing children and young people

National Commissioner for Aboriginal and Torres Strait Islander Children and Young People
The Government will provide funding of $5.9 million over two years from 2024–25 to establish interim arrangements for the National Commissioner for Aboriginal and Torres Strait Islander Children and Young People (National Commissioner). From mid-2024, the interim National Commissioner will lead the establishment of an Office of the National Commissioner to act to protect and promote the rights, interests and wellbeing of Aboriginal and Torres Strait Islander children and young people. The interim National Commissioner will consult with First Nations stakeholders to inform the full suite of functions for the ongoing statutory role of the National Commissioner and the Office of the National Commissioner which will be established under legislation. The cost of this measure will be met from within the existing resourcing of the Department of Social Services and the National Indigenous Australians Agency.

Supporting families and the cost of living

Personal Income Tax – Cost of Living Tax Cuts
The Government has legislated permanent tax cuts for all 13.6 million Australian taxpayers from 1 July 2024. The tax cuts provide cost-of-living relief, return bracket creep, support women and boost labour supply. Under the Government’s tax cuts, from 2024–25:

• the 19 per cent tax rate will be reduced to 16 per cent
• the 32.5 per cent tax rate will be reduced to 30 per cent
• the income threshold above which the 37 per cent tax rate applies will be increased from $120,000 to $135,000
• the income threshold above which the 45 per cent tax rate applies will be increased from $180,000 to $190,000.

Energy Bill Relief Fund – extension and expansion – Budget investment = $3.5 billion over three years from 2023–24
Extension and expand the Energy Bill Relief Fund to provide a $300 rebate to all Australian households and a $325 rebate to eligible small businesses on 2024–25 bills to provide cost of living relief.

Commonwealth Rent Assistance – Budget investment = $253.6 million over five years from 2023–24, $19 million per year ongoing
Increase to all Commonwealth Rent Assistance maximum rates by 10 per cent from 20 September 2024, to help address rental affordability challenges for recipients.

A Higher Rate of JobSeeker Payment for People with a Partial Capacity to Work – Budget investment = $41.2 million over five years from 2023–24, and $7 million per year ongoing from 2028–29
Extending eligibility for the existing higher rate of JobSeeker payment to single recipients with a partial capacity to work of zero to 14 hours per week from 20 September 2024.

The higher JobSeeker payment rate is currently provided to single recipients with dependent children and those aged 55 and over who have been on payment for nine continuous months or more.

Financial Wellbeing and Capability Activity – Budget investment = $138.0 million over five years from 2023–24 (and $35.4 million per year ongoing)
Support for Australians in financial distress or experiencing financial hardship and to build financial resilience, through additional funding to the Financial Wellbeing and Capability Activity. The activity will also be restructured to operate under two streams of support: Financial Capability and Resilience and Financial Crisis Response and Recovery. Funding includes:

▪ $114.8 million over five years from 2023–24 to support individuals and families experiencing financial distress in times of crisis and natural disasters.

▪ $11.2 million over three years from 2025–26 for the expansion of the Saver Plus program to enable participants to build financial skills, capabilities and resilience

▪ $6.3 million over three years from 2025–26 for the No Interest Loan Scheme for Vehicles for vulnerable people needing to purchase vehicles for essential use

▪ $4.7 million over three years from 2025–26 to enable better accessibility to financial counselling services through the National Debt Helpline, including an appointment booking system and live webchat function to support individuals with personal financial difficulty.

In addition, the Government will reprioritise existing resourcing to:

▪ expand the Money Support Hub program to focus on early intervention supports continue the STEPS Students Financial Counselling program

▪ support Financial Counselling Australia to increase capacity and capability supports for the financial counselling sector

▪ expand types of material aid supported under the Financial Crisis and Material Aid program

▪ data and evaluation activities to support the implementation of new initiatives and ensure services continue to support vulnerable cohorts.

Outcomes Fund – Budget investment = $4.7 million over three years from 2024–25 (and an additional $0.8 million from 2028–29 to 2033–34
Establish, manage, and evaluate the Outcomes Fund. The fund will focus on outcomes for families and children to prevent cycles of intergenerational and community disadvantage, barriers to employment and inclusive employment models, and housing needs of vulnerable and homeless Australians and moving beyond short-term crisis care.

Carers and caregiving

Carer Payment – increased flexibility – Budget investment = $18.6 million over five years from 2023–24, and $3.1 million per year ongoing
From 20 March 2025, the existing 25 hour per week participation limit for Carer Payment recipients will be amended to 100 hours over four weeks. The participation limit will no longer capture study, volunteering activities and travel time and will only apply to employment.

Carer Payment recipients exceeding the participation limit or their allowable temporary cessation of care days will have their payments suspended for up to six months, rather than cancelled. Recipients will also be able to use single temporary cessation of care days where they exceed the participation limit, rather than the current seven day minimum.

Family violence

Leaving Violence Program – Budget investment = $925.2 million over five years from 2023–24 (and $263.3 million per year ongoing)
To make permanent the Leaving Violence Program that will provide financial support, safety assessments and referrals to support services for victim-survivors leaving a violent intimate partner relationship.

The Leaving Violence Program (LVP) from 1 July 2025 to provide financial support of up to $5,000 (indexed annually to Wage Cost Index) and support services including risk assessments, safety planning and short-term referral services for up to 12 weeks. This includes extending and expanding the Escaping Violence Payment and the Temporary Visa Holders Experiencing Violence Pilot trials to 30 June 2025, and to continue to provide support services for a further 12 weeks beyond the pilot end date for active cases. The LVP will replace these trials.

Additional targeting supports within this funding are to continue legal assistance for temporary visa holders leaving a violent relationship.

Online Safety – Budget investment = $7.9 million over two years from 2024-25
This package includes measures to:

▪ Pilot age assurance technology to prevent children from accessing harmful online content.

▪ Introduce legislation to ban the creation and non-consensual distribution of deepfake sexually explicit material.

▪ Bring in a new phase of the Stop it at the Start campaign, which is due to launch in June 2024 and run until May 2025.

• Bring forward previously announced legislative changes including the introduction of legislation to outlaw doxxing and a review of the Online Safety Act.

Ending Gender-Based Violence – additional resourcing – Budget investment = $9.6 million over five years from 2023–24 (and $1.0 million per year ongoing)
To further build the evidence base on pathways into and out of perpetration of family, domestic and sexual violence. Including additional resourcing for the Office for Women, in the Department of the Prime Minister and Cabinet, to support whole of government coordination to respond to gender-based violence and a rapid review of targeted prevention approaches to violence against women to provide advice to Government, including a focus on homicides.

National Legal Assistance Partnership – Budget investment = $44.1 million in 2024-25
To support the National Legal Assistance Partnership and Family Violence Prevention Legal Services, including one-year indexation supplementation to the funding for Legal Aid Commissions, Community Legal Centres and Aboriginal and Torres Strait Islander Legal Services, and additional funding to reduce community legal sector pay disparity.

Education

Australian Universities Accord – tertiary education system reforms – Budget investment = $1.1 billion over five years from 2023–24 (and an additional $2.7 billion from 2028–29 to 2034–35)

The first stage of reforms to Australia’s tertiary education system in response to the Australian Universities Accord Final Report. These reforms will boost equity and access to higher education, progress tertiary harmonisation and will support a target of 80 per cent of the working age population holding a tertiary qualification by 2050. Funding includes:

• $427.4 million over four years from 2024–25 (and an additional $1.2 billion from 2028–29 to 2034–35) to establish a new Commonwealth Prac Payment of $319.5 per week (benchmarked to the single Austudy rate) from 1 July 2025 for tertiary students undertaking supervised mandatory placements as part of their nursing (including midwifery), teaching or social work studies
• $350.3 million over four years from 2024–25 (and an additional $1.1 billion from 2028–29 to 2034–35) to expand access to university enabling and preparation programs through a new FEE-FREE Uni Ready Courses program from 1 January 2025
• $239.7 million over five years from 2023–24 (and an additional $250.5 million from 2028–29 to 2034–35) to limit the indexation of the Higher Education Loan Program (and other student loans) debt to the lower of either the Consumer Price Index or the Wage Price Index, effective from 1 June 2023, subject to the passage of legislation. This applies retrospectively and is estimated to reduce outstanding loans by around $3.0 billion
• $18.7 million over four years from 2024–25 (and an additional $28.8 million from 2028–29 to 2034–35) to introduce a National Higher Education Code to Prevent and Respond to Gender-based Violence from 1 January 2025.

Commonwealth Prac Payment – Budget investment = $427.4 million over four years (and an additional $1.2 billion from 2028–29 to 2034–35)
Funding is provided to establish a new Commonwealth Prac Payment of $319.5 per week (benchmarked to the single Austudy rate) from 1 July 2025 for tertiary students undertaking supervised mandatory placements as part of their nursing (including midwifery), teaching or social work studies.

School Education Support – Budget investment = $70.3 million over five years from 2023–24
The Government will provide to continue support for initiatives to improve education outcomes for students.

Funding includes:

• $34.6 million over four years from 2024–25 to support the Digital Technologies Hub, Mathematics Hub, Literacy Hub, Civics and Citizenship Hub, Student Wellbeing Hub, Massive Open Online Courses and Number Check, and Early Learning Languages Australia initiative to make evidence-based curriculum support and professional development materials available to all teachers and school leaders
• $12.7 million over three years from 2024–25 to support the Australian Curriculum, Assessment and Reporting Authority to manage the collection, quality assurance and reporting of school information
• $7.9 million over two years from 2024–25 to support the Online National Assessment Platform to continue national testing of the National Assessment Program – Literacy and Numeracy, Civics and Citizenship, Information and Communication Technology Literacy and Science Literacy
• $5.3 million over two years from 2024–25 to support the Good to Great Schools Australia English, Maths and Science pilot program to deliver targeted supports to students
• $4.2 million over four years from 2024–25 to support the Australian Schools Anti-Bullying Collective to deliver national bullying prevention initiatives
• $4.0 million over two years from 2024–25 to support Together for Humanity to deliver initiatives aimed at strengthening intercultural and interfaith understanding and building culturally safe schools
• $1.7 million over four years from 2023–24 to deliver initiatives announced in the Government’s youth engagement strategy, Engage! A strategy to include young people in the decisions we make.

Closing the Gap – Education – Budget investment = $110.0 million over four years from 2024–25 (and $11.0 million per year ongoing)
Funding is provided to accelerate action against the National Agreement on Closing the Gap Priority Reforms in the Education portfolio and extend programs supporting education outcomes.

Funding includes:

• $32.8 million over two years from 2024–25 for the Clontarf Foundation to extend its existing program for the 2025 school year to support school engagement for at-risk First Nations young men
• $29.1 million over four years from 2024–25 (and $8.7 million per year ongoing) to support national First Nations peak organisations National Aboriginal and Torres Strait Islander Education Corporation and SNAICC – National Voice for our Children to partner with Government on matters affecting First Nations children
• $27.5 million over three years from 2024–25 to extend the existing programs, Australian Indigenous Education Foundation Scholarship Program, Australian Institute for Teaching and School Leadership’s Indigenous Cultural Responsiveness Initiative and English Language Learning for Indigenous Children which aim to improve educational outcomes of First Nations students
• $18.2 million over four years from 2024–25 (and $2.2 million per year ongoing) to develop a new First Nations education policy and engage with First Nations stakeholders
• $2.4 million over three years from 2024–25 to finalise and implement the First Nations Teacher Strategy to improve the attraction and retention of First Nations teachers.

Disability

National Disability Insurance Scheme – getting the NDIS back on track – Budget investment = $468.7 million over five years
$160.7 million over four years from 2024–25 (and $24.6 million per year ongoing) to upgrade the NDIS Quality and Safeguards Commission’s information technology systems, to better protect the safety of NDIS participants, reduce regulatory burden on NDIS providers, and improve cyber security

▪ $129.8 million over two years from 2023–24 for design and consultation work to respond to the findings of the Independent NDIS Review

▪ $83.9 million over two years from 2023–24 to boost fraud detecting information technology systems at the National Disability Insurance Agency (NDIA), to further safeguard the integrity of the NDIS

▪ $45.5 million over four years from 2024–25 (and $13.3 million per year ongoing) to establish a NDIS Evidence Advisory Committee, to provide independent and transparent advice to Government on the efficacy and cost-benefits of types of supports funded by the NDIS

▪ $23.5 million over two years from 2024–25 for Services Australia to continue fraud investigation and response activities as part of the Fraud Fusion Taskforce $20.0 million over two years from 2024–25 for initial design and consultation work on reforms to help participants and people with disability navigate services

▪ $5.3 million in 2024–25 for the Independent Health and Aged Care Pricing Authority to work with the Department of Social Services and the NDIA to undertake initial work to reform NDIS pricing arrangements, including reviewing existing pricing approaches and developing a pricing data strategy.

The Government will also establish a NDIS Implementation Advisory Committee and a NDIS Implementation Working Group, to oversee implementation of reforms recommended by the Independent NDIS Review and agreed by Government.

As an initial response to the Independent NDIS Review, on 6 December 2023 National Cabinet agreed to work together to implement legislative and other changes to the NDIS to improve the experience of participants and restore the original intent of the Scheme to support people with permanent and significant disability, within a broader ecosystem of supports.

On 27 March 2024 the Government introduced the National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track) Bill 2024 No. 1 (the Bill) to Parliament. Changes in the Bill are aimed at securing the future of the NDIS and progressing key Independent NDIS Review recommendations. The Bill will help the NDIS get back on track by determining NDIS participant plan budgets more consistently based on participant need, supporting participants to spend in accordance with their plans, clarifying the information that participants need to provide to support plan reassessments, and clarifying what types of supports can be funded. The Bill also provides more flexibility on how the NDIS Commissioner can take action to protect NDIS participants from abuse, harm and neglect.

Based on data up to December 2023, the NDIS Actuary projected that without further action, NDIS payments would increase by $14.4 billion over four years from 2024–25. The NDIS reforms being undertaken by the Government are expected to moderate this additional growth to that projected at the 2023–24 MYEFO, and ensure the NDIS remains on track to achieve the NDIS Sustainability Framework agreed by National Cabinet from 1 July 2026.

The Government has already provided partial funding for this measure. Additional costs will be partially met from within the existing resourcing of the Department of Social Services, the NDIA, and the Independent Health and Aged Care Pricing Authority.

This measure builds on the 2022–23 October Budget measure titled Fraud Fusion Taskforce, the 2023–24 Budget measure titled Improving the Effectiveness and Sustainability of the National Disability Insurance Scheme, and the 2023–24 MYEFO measure titled Support for the National Disability Insurance Scheme.

Housing

National Agreement on Social Housing and Homelessness – Budget investment = $9.3 billion over five years
Subject to states and territories signing the new National Agreement on Social Housing and Homelessness, the Commonwealth will provide $423.1 million over five years from 2024–25 in additional funding to support the provision of social housing and homelessness services by states and territories under a new National Agreement on Social Housing and Homelessness.

Support for First Nations housing – Budget investment = $2 million over three years
Expenditure will build the financial capability of community housing providers and Aboriginal and Torres Strait Islander community-controlled housing organisations.

Healthcare

Women’s health – Budget investment = $6.0 million over two years from 2024–25
To support Primary Health Networks on the Central Coast to provide local outreach trauma-informed healthcare support for women and their children experiencing domestic and family violence or homelessness.

Mental Health – Budget investment = $888.1 million over eight years
The Government will provide $888.1 million over 8 years from 2024–25 (and $139.8 million per year ongoing) to respond to the Better Access evaluation and to strengthen Australia’s mental health and suicide prevention system. Funding includes:

▪ $588.5 million over eight years from 2024–25 (and $113.4 million per year ongoing) to establish a national low intensity digital mental health service that is free of charge and free of need for referral.

▪ $71.7 million over four years from 2024–25 (and $24.4 million per year ongoing) to provide wrap around care for people with severe and/or complex needs in primary care settings, through design and delivery of mental health multidisciplinary services.

▪ $35.9 million over four years from 2024–25 to extend terminating mental health measures, to enhance the delivery of mental health and suicide prevention services and to provide greater funding certainty for service providers.

▪ $29.9 million over four years from 2024–25 to uplift Head to Health services to expand access to free community based mental health services for adults with moderate to severe mental health needs.

▪ $29.7 million over three years from 2024–25 to improve child and youth mental health services through uplifting workforce capability and co-designing new models of care.

▪ $12.8 million over four years from 2024–25 to extend the Indigenous Youth Connection to Culture program which supports First Nations youth in 12 communities through place-based activities to reduce suicide rates and improve mental health outcomes.

▪ $10.0 million in 2024–25 to maintain funding to deliver targeted and culturally appropriate mental health supports for First Nations Australians.

▪ $7.1 million over four years from 2024–25 to build and support the lived experience peer mental health workforce, through the establishment of a national professional association for peer workers, delivery of a workforce census and the exploration of further training pathways.

Personal Income Tax – Cost of Living (increasing the Medicare levy low-income thresholds) – Budget investment =  Decrease receipts by ~$640 million over 4 years
The Government has increased the Medicare levy low-income thresholds for singles, families, and seniors and pensioners from 1 July 2023 to provide cost-of-living relief. The increase to the thresholds ensures that low income individuals continue to be exempt from paying the Medicare levy or pay a reduced levy rate. The increase to the thresholds accounts for recent annual CPI outcomes and is estimated to decrease receipts by $640 million over the four years to 2026–27.

• The threshold for singles has been increased from $24,276 to $26,000.
• The family threshold has been increased from $40,939 to $43,846.
• For single seniors and pensioners, the threshold has been increased from $38,365 to $41,089.
• The family threshold for seniors and pensioners has been increased from $53,406 to $57,198.
• The family income thresholds will now increase by $4,027 for each dependent child, up from $3,760.

Preventative Health – Men’s Health – Budget investment $11.6 million over 2 years
$11.6 million over two years from 2024–25 to continue support for Men’s Sheds and existing national men’s health research and data collection initiatives, in line with the National Men’s Health Strategy 2020–2030.

Strengthening Medicare – Medicare Urgent Care Clinics – additional funding
The Government will provide $227.0 million over three years from 2023–24 to boost the capacity of Medicare Urgent Care Clinics. This will include a further 29 Medicare Urgent Care Clinics across Australia, which will take the total number of Medicare Urgent Care Clinics to 87. The Government is also providing additional support to clinics in regional and rural Australia. Medicare Urgent Care Clinics reduce pressure on hospital emergency departments by supporting Australians to access care for urgent, but not life-threatening conditions. All Medicare Urgent Care Clinics are open during extended business hours with no appointments or referrals required, and with no out of pocket costs.

Strengthening Medicare – an effective and clinically appropriate Medicare Benefits Schedule (MBS)
The Government will provide $895.6 million over four years from 2024–25 to ensure the Medicare Benefits Schedule (MBS) remains clinically appropriate and reflects modern medical practices.

Securing Cheaper Medicines
The Government will provide $480.2 million over five years from 2023–24 to reduce patient costs and improve access to medicines.

Supporting Ongoing Access to Vaccines
The Government will provide $631.1 million over four years from 2024–25 (and $112.1 million per year ongoing) to support ongoing access to life-saving vaccines.

Early Years

Child Care Subsidy Reform – further measures for strong and sustainable foundations – Budget investment = $30 million over two years from 2024–25
IT and payment services to deliver on its commitment to provide funding towards a wage increase for the Early Childhood Education and Care sector. This will support a response to Fair Work Commission processes as they relate to this sector.

Early Years Strategy – aligning investment – Budget investment = $14.3 million over five years from 2024–2025
Extend and expand existing community support for parents and caregivers to improve child outcomes in line with the Early Years Strategy. Funding includes:

▪ $4.8 million over two years from 2024–25 for The Fathering Project

▪ $4.6 million over two years from 2024–25 for the Raising Children Network

▪ $4.3 million over two years from 2024–25 for the Supporting Expecting and Parenting Teens Program administered by the Brave Foundation

▪ $0.4 million over five years from 2024–25 to establish a Parents and Carers Reference Group.

Inclusion Support Program – additional funding – Budget investment = 98.4 million in 2024–2025
To help childcare services increase their capacity to support inclusion of children with additional needs, through tailored support and funding to services.

Justice

Enhancing First Nations Justice Policy Outcomes – Budget investment = $43.1 million over four years
The Government will provide $43.1 million over four years from 2024–25 to improve justice outcomes for First Nations individuals and families. The package includes:

▪ $20.2 million over four years from 2024–25 to the Federal Court of Australia and the National Native Title Tribunal to preserve culturally and historically significant native title records and address the backlog of native title claims and post-determination disputes

▪ $11.7 million over two years from 2024–25 to extend the First Nations Family Dispute Resolution pilot to support culturally safe family dispute resolution services

▪ $10.7 million over four years from 2024–25 to continue funding for the Justice Policy Partnership to work in partnership with all government and non-government First Nations members to reduce adult and youth incarceration rates for First Nations peoples (Targets 10 and 11 of the National Agreement on Closing the Gap)

▪ $0.5 million over two years from 2024–25 to the Australian Law Reform Commission to review the future acts regime within the Native Title Act.

Redress

National Redress Scheme (further support) – Budget investment = $33.3 million over four years from 2024–25
Establish a demand-driven service to support applicants of the National Redress Scheme who submit incomplete applications to improve the efficiency of the Scheme and to better support survivors of institutional sex abuse through the application process.

Links

• View the full Federal Budget 2024-2025 here
• Download the Centre’s Federal Budget submission here
• Download this summary as a PDF here
• View the Centre’s Media Statement here