Challenging road ahead after “mixed bag” Victorian budget

MEDIA RELEASE

Victoria has delivered a lean and challenging budget, signalling tough times for many people, according to the Victorian Council of Social Service.  

The budget has dramatically curbed spending in key areas, such as employment support. The Community Connectors program, which links vulnerable Victorians to health and social supports, has been cut entirely. A series of low-income electricity concessions have also been scrapped.  

“This budget certainly lacks the big spending investments of recent years,” VCOSS CEO Emma King said.

New revenue measures to repay COVID-era debts have been squarely targeted at businesses, investors and higher-income earners, with lower-income and more vulnerable Victorians spared the pain.  

So-called “efficiency dividends” facing government departments will have flow-on effects for social service bodies. Ms. King said many now face the tough challenge of keeping staff and delivering critical services with less money.  

“That will prove impossible for some,” she said.  

But VCOSS has identified some positive measures in the budget papers.  

• Aboriginal care
  There’s an historic $140m investment in out-of-home care services, which will empower Aboriginal people and community-led organisations to take the lead in delivering key family supports.    
  
• Housing
  More than $100m has been allocated to expand the delivery of Housing First models to address homelessness.  
  
• Flood recovery
  $347.5m this year to support genuine and long-term recovery for flood-affected communities (including mental health supports).
  
• Engaging young people
  Including more than $5m to assist teenagers to stay connected to school (currently about 10,000 Victorian school students drop out each year) and $1.9m for an Engaging At-Risk Youth Program, to promote school engagement or re-engagement for African and Pasifika young people.
  
• Disability advocacy
  Boost funding for disability advocacy will be maintained for a further year.
  
• Early intervention
  More than $670m will be spent on health and social inclusion measures, under the government’s broad-ranging Early Intervention Investment Fund.  

“These are some of the bright spots in a tough budget,” Ms. King said.  

The budget includes $20m to increase baseline community sector funding by 3.3%. While this is less than what’s required to keep pace with surging costs and increasing demand, it’s a critical and welcome down payment on further support. VCOSS remains hopeful of greater commitments in the near future.

VCOSS will advocate on behalf of people in poverty and the organisations who support them, to minimise the impacts of this challenging period in the budget cycle.  

vcoss.org.au/vicbudget

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