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Cautious welcome for ‘softer’ budget

By CAM LUCADOU-WELLS

CALL it faint praise – but this year’s Federal Budget is at least “not as savage” as the 2014 proposal, says Cranbourne Information and Support Service executive director Leanne Petrides.
“There seems to be more incentives for people getting into the workforce and less punishment,” she said.
It was still too early to tell how the changes to child-care and family-tax benefits would impact on the welfare support service’s clients.
Ms Petrides was worried that non-working parents could be cut off from child care access though there were legitimate reasons for them to need the service, such as to help socialise the child.
“From my first read of it, the government is targeting it as a work-support package for people currently working or mums entering the workforce.”
Some of the highlights of the budget include:
* A $10 million grant for Casey Council’s proposed cultural centre Bunjil Place in Narre Warren.
* Extra child-care support for disadvantaged and vulnerable children.
* Extra child-care subsidies for families earning between $65,000-$170,000.
* Immediate tax deductions for small businesses buying equipment up to $20,000.
* More support for young disadvantaged people to get into work, including migrants and those with mental health issues.
* $30 per fortnight allowance boost for 170,000 pensioners with “modest assets”.
Ms Petrides welcomed a $63.4 million package to continue funding “microfinance” services over five years.
The funds would help people on low incomes access no and low-interest loans rather than fall into “the trap of lending from pawnbrokers and payday lenders”.
She praised boosting Newstart payments for young people – which are “well below the poverty line” – as well as winding down the six-month wait for the allowance.
She gave qualified support to boosting incentives to employ people aged 50-plus.
“My concern is there are already more people applying for positions than there are jobs available.
“The maths doesn’t add up.”
Hampton Park Networking Group president Vanessa Gerdes said she still had “a few questions” about the small business tax deductions.
“It’s fine giving money for small business to grow but it has to be a realistic benefit like manufacturing equipment.
“If it’s used just for a new desk and new computer – it could just as easily be used by the kids at home.
“Are we opening the door for corrupt small businesses that are just going to write off everything?”
She said increased subsidies to help mothers return to work were insufficient.
Part-time incomes – chewed up by child-care and kindergarten costs – were “not worth it”, Ms Gerdes said.
Small business owner Brad Woodford told Star News Group that the budget package would help “prop up my business and perhaps expand”.
“It’s good news for those operating a small business and will hopefully result in more economic activity and more jobs.”
Shaunagh Stevens, a Beaconsfield disability pensioner, said the government had no choice but to retreat from its unpopular “hardline” budget policies.
Since last year’s budget, the planned $7 GP co-payment and the raising of the fuel levy have been abandoned.
“It was so obvious that they had been targeting struggling people – even their own backbenchers were saying it was a bit tough.”
Ms Stevens said she’d reserve judgement on the budget until its measures came into effect.
“A lot of these things are not as good as you think they’ll be. That’s what I dislike about politics – it’s not upfront with you.”
She worries whether the much-hyped National Disability Insurance Scheme will deliver.
In the budget, $143 million is provided to roll out a new ICT system for the scheme, but there’s “still a lot of questions to be answered”, Ms Stevens says.
“We still don’t know what it’s going to look like and mean for people with disabilities? When is it going to arrive?”
“I’m concerned that people with disabilities think it’s going to be the best thing since sliced bread and there’s going to be disappointed.”

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