Cost-of-living pressures are being felt across the country, and the 2024–25 ACT Budget will support Canberrans who are most impacted, the ACT Government states.

“The ACT Government is continuing to deliver targeted cost of living support,” Chief Minister Andrew Barr said.

“Through the initiatives the Government has put in place over a number of years, we’re helping tens of thousands of Canberra families with their everyday costs. This also includes investments like free 3-year-old preschool, additional free health services through our walk-in centres, energy rebates and fee-free TAFE places.

“This year’s Budget continues this work, reducing costs where possible and providing financial support to the Canberrans who need it most.”

Opposition leader Elizabeth Lee criticised the budget for failing to provide real cost-of-living relief, while the ACT Council of Social Service (ACTCOSS) welcomed the budget’s focus on cost-of-living support, but said it needed more investment due to the severe challenges faced by those in poverty, and it lacked sufficient investment in new public housing.

Food relief

Emergency material and financial aid programs and food relief services will receive an additional $913,000, to support vulnerable Canberrans in need of food and other necessities.

“We want all Canberrans to have the essential items they need in their everyday life,” Emma Davidson, ACT Minister for Community Services, Seniors and Veterans, said. “But with the rising cost of living, more and more people are giving up food to pay the bills. 

“The additional $913,000 in the 2024-25 ACT Budget for food relief will support the Canberra community’s access to essential grocery items. It continues to recognise and build on the fantastic support our community sector provides to Canberrans in need.”

ACT Government funding goes to securing the supply of resources for food pantries and relief programs, a government spokesperson explained. It mostly goes to freight costs, food rescue activities (which OzHarvest leads), and the Food Security Program (which helps food pantries run more efficiently).

“It will ensure Uniting Care Kippax, The Salvation Army, St Vincent de Paul, Foodbank and Ozharvest” – the organisations that lead the co-ordination work in partnership with the government – “can meet increasing demand and help Canberrans to meet their essential needs,” Ms Davidson said.

Rent relief

The Rent Relief Fund gives grants worth up to four weeks’ rent to eligible households experiencing financial hardship.

“We understand that many Canberrans are still facing immense pressure due to high rents and cost-of-living challenges,” Attorney-General Shane Rattenbury said. “This additional funding for the Rent Relief Fund is a lifeline for our most vulnerable renters, offering them much-needed financial support to stay in their homes and maintain stability during these difficult times.

“The ACT Government is committed to leading the nation in supporting the rights and wellbeing of renters. By extending the Rent Relief Fund, we are not only providing immediate relief but also demonstrating our ongoing commitment to ensuring housing affordability and security for all Canberrans.”

Education equity

The Future of Education Equity Fund, which helps financially disadvantaged families with the costs of their children’s education, will receive an additional $1 million. The Fund has supported more than 5,000 students so far this year; by midway through first term, it had provided more than $1.5 million to families in need.

“Every child deserves a quality education,” Yvette Berry, ACT Minister for Education and Youth Affairs, said.

“The expansion of the Education Equity Fund will enable the ACT Government to support more students and their families with a range of school expenses, including items or activities to enrich their learning.

“Importantly, this additional funding will help us further improve equity and access – principles central to the ACT Government’s Future of Education strategy.”

Local apprentices and trainees will receive a one-off $250 payment.

“Apprentices and trainees have a restricted earning capacity while they are obtaining their qualification, and this payment recognises the financial pressures these Canberrans are facing.”

The government will contact eligible apprentices and trainees by the end of September; they will not need to apply for the payment.

However, the Master Builders ACT considers the payment inadequate.

“While apprentices and trainees will welcome a one-off $250 cost-of-living grant, for tradies this amounts to about two tanks of fuel in their work ute, and hardly addresses the chronic lack of funding for apprentices in this sector,” CEO Michael Hopkins said.

Utilities

The Electricity, Gas and Water Rebate will be increased by $50, from $750 to $800 per year, which will help more than 40,000 low-income households with their home energy costs.  When combined with the $300 Federal Government energy payment, the government expects one in five Canberra households will receive $1,100 in assistance towards their energy bills.

The Utilities Hardship Fund will be expanded, including increasing vouchers from $100 to $300, to support more households to change their energy use.

The cost-of-living package in this year’s Budget also includes:

• Expanding public transport concession fares to include Canberrans with a Commonwealth Low-Income Health Care Card, to support more people accessing buses and light rail.
• Additional funding to Roundabout Canberra, Scouts ACT, Fearless Women, and Women’s Health Matters, which deliver essential services to vulnerable Canberrans.
• Increasing assistance through the Taxi Subsidy Scheme, including increasing the subsidy for ride users, further reducing out-of-pocket costs for vulnerable Canberrans.
• Increasing the Life Support Rebate to $150 a year, to support more Canberrans using electric life support equipment to treat a life-threatening condition.

The package was developed by the cost-of-living subcommittee announced late last year.

Canberra Liberals

“When you speak to Canberrans each and every day, as the Canberra Liberals have been doing for a number of years now, it is clear that there are many Canberrans doing it incredibly tough,” opposition leader Elizabeth Lee said.

“We raise concerns on behalf of almost 40,000 Canberrans, including almost 9,000 children. In addition to that, over the last couple of years, we’ve seen so many Canberrans … who’ve previously never had to worry about whether they can only afford groceries or go to the doctor that week … people who turn off the heater despite the fact that it’s minus eight degrees in the morning because they just do not have the money to pay for the kids that week. So these are heartbreaking decisions that we’re seeing, Canberrans make each and every day. We’re not just talking about the Canberrans that are on a concession card, or on a pension; we’re talking about Canberrans who have full time work and who are living pay cheque to pay cheque.

“This was the budget that Andrew Barr spruiked as being the cost of living repletion budget. And I think that when Canberrans go through the detail of what’s been delivered, it’s going to be incredibly disappointing. In stark contrast, the Canberra Liberals’ cost of living relief package acknowledges and accepts and understands and listens to and responds to the Canberrans who have told us that they’re doing incredibly tough. We’re talking about real and tangible, real and measurable steps to relieve that burden.”

ACTCOSS

Dr Devin Bowles, CEO of ACTCOSS, said: “The focus on cost of living support in the ACT Budget is welcome, though the scale of investment should be increased given the extreme challenges faced by those experiencing poverty during the cost of living crisis.

“ACTCOSS appreciates the cost of living measures that are targeted at those doing it toughest, including rent relief and emergency financial aid and food relief. We would have liked to see additional investment in emergency food distribution, including for the infrastructure required to support food distribution operations that have grown substantially in recent years.

“Access to energy is one of the ACT Government’s most important levers to assist with cost of living pressures. We welcome the targeted measures of the $50 increase to the Electricity, Gas and Water Rebate, to $800 and expansion of the Utilities Hardship Fund.

“Housing is a substantial driver of the cost of living crisis.

“While the additional funding for housing generally, and community housing in particular, are welcome, we know the need is much greater.

“The budget suffers from insufficient investment in new public housing. The proportion of total housing which is public housing will shrink, worsening a long-term trend. Given that private ownership and even private rentals are becoming more difficult to achieve on a low or even moderate income, we need to be growing the share of housing which is public housing.

“An increased focus on public housing maintenance is welcome.”