Worsening disasters, ongoing global shocks, and an aging population will lead to more severe inequality and social division without bold reforms to protect the community, said ACOSS following the release of the Intergenerational report.

“It’s clear that we will need a significant investment in the care economy, income supports, energy transition, and disaster resilience in light of significant global and domestic challenges,” said ACOSS CEO Dr Cassandra Goldie. 

“The health and social assistance sector is now Australia’s largest employing industry with around 2.4 million people, approximately 16 per cent of the workforce. The Intergenerational report highlights the increasing importance of the care economy in the context of an aging population.”

“These services, and the safety net, must be strengthened to improve our individual and collective resilience in the face of profound uncertainty. 

“The current projections for spending on vital social supports are unrealistically low, given the inadequacy of income support payments and the clear need for high-quality aged care, health, disability, childcare services, and disaster resilience.

“The report assumes that unemployment and family payments will not be increased in real terms for 40 years, consigning people to ever-deepening poverty and growing inequality. The report estimates reductions in spending for unemployment payments and family payments of $9 and $12 billion annually respectively, in today’s dollars.

“The report sets out the serious economic and human costs of inaction on climate change. Greater investment now in renewable energy, along with climate resilience and adaptation, will reduce future costs.

Dr Goldie said that we must ensure that we have a strong revenue base to ensure we fund these essential supports and services in the coming decades.

“The Government has taken some important steps towards a fairer and more sustainable tax system in housing and trusts and must stay the course on reform to meet current and future challenges” said Dr Goldie. 

“We could in part meet these growing needs by raising revenue from exports by multinational gas companies and closing the tax loopholes that let some of the wealthiest in the community minimise the tax they pay.

“Now is not the time for further income tax cuts. One third of households on the lowest incomes do not benefit at all from tax cuts, and they will be the ones to suffer from the budget spending cuts in disability and care services that will be used to pay for them.”

ACOSS is calling on the Government to prioritise the following:

• Guarantee the essential care and community services people need and move away from market-based provision that costs more and undermines quality.
• Lift income support for those in the deepest poverty including Jobseeker and Youth Allowances, and index payments to growth in wages so they keep up with community living standards in future.
• Fully legislate and implement the tax reforms announced at Budget, including curbing the capital gains tax discount and negative gearing, closing loopholes used by discretionary trusts, and fringe benefits tax changes for electric vehicles, estimated to raise $93bn over a decade.
• Introduce a 25% tax  on gas export revenue ($17bn annually) and roll back the generous diesel fuel tax credit for mining companies ($4.6bn annually), so we get a fair return from our natural resources 
• Further wind back excessively generous superannuation tax concessions, including tax-free investment income after retirement ($10bn annually)
• Resist further income tax cuts that would erode the revenue needed to fund essential services