This budget is, in many ways, similar to previous budgets for young people in Australia. It has a strong focus on education and training and—in regards to Centrelink—has a focus on compliance and fraud protection. It is positive to see Youth Allowance extended to Masters (coursework) students and Rent Assistance to Austudy recipients. Similarly, it is pleasing to see a range of measures targeted at Indigenous young people to provide them with support to access education, employment and health care.
It is, however, unlikely that most young people will benefit from the $31.5 billion in tax cuts as the cuts only increase the threshold for those earning up to $80,000 by $5,000 as opposed to by $30,000 for those earning above $150,000. Young people will benefit from the annual $1000 payments for those attaining an Apprenticeship in skill shortage areas.
The education measures in this budget are significant—particularly in the areas of higher education. The changes are mixed, with increasing capital investment for universities coupled with increased HECS-HELP fees for those studying Economics, Commerce and Accounting.
Importantly, there is no funding for the community sector to increase its skills and to provide better services for young people. The government has continued to fund the Australian Division of General Practice ($80m in 2008-09), the Australian Research Alliance for Children and Young People ($4.2m over two years) and significant investments for professional development for teachers, but has failed to invest in a national peak body for young people.
Finally, there is very little money for important areas such as mental health and housing which continue to have significant detrimental impacts on young people. Centrelink payments continue to be inadequate for young people to live on and training wages and youth wages are also inadequate for young people to achieve independence.
