Budget 2015: 'Savage' spending cuts to have devastating impact on families, ACOSS says

Extract from ABC News

AM

Updated 51 minutes ago

Photo: Dr Cassandra Goldie says cuts introduced in this year's federal budget will have a detrimental impact on vulnerable groups. (AAP: Lukas Coch)

Related Story: Federal Treasurer to brief Townsville traders on small business sweeteners

The federal budget will strip more than $15 billion over four years from families and lower-income earners, Australia's peak social welfare group says.

The Australian Council of Social Service (ACOSS) chief executive Cassandra Goldie told AM the "savage" budget unequivocally fails the fairness test because it does not include structural tax reform.
A report from the organisation shows that by keeping most of last year's savings measures and introducing new cuts, the 2015 budget will strip an estimated $15 billion over four years from basic services.
Dr Goldie said changes had been made which affected vulnerable groups without any thoughtful design or consultation with those affected.

Audio: Listen to Jessica Kidd's interview with Cassandra Goldie (AM)

"The combined effect of last year's budget and this year's, if you put them together, we have a big savage cut to spending in critical areas of service delivery and our social safety net, housing and homelessness services and now child dental health as well was in the budget - another 500 million [dollars] in cuts to community based health services," she said.
Federal Treasurer Joe Hockey highlighted spending on tax incentives for small business as the centrepiece of the budget, saying the $5.5 billion package to help more than 2 million small businesses would help stimulate the economy.
Dr Goldie conceded the current economic state presented a fiscal challenge for the Government, but believed the budget could set a path for a return to surplus that was "fair and considered".
"We're very disturbed the way the Government seems to be hitting on tax where we've got this very generous tax break for small business which has cost a lot on the bottom line," she said.
"It's a very blunt measure, a tax cut across the board regardless of what kind of operation you're involved in, when we would have liked to have seen something that was much more targeted to really stimulate jobs in the industries where we think there's serious opportunities into the future."
ACOSS has also urged the Government to reform existing negative gearing and capital gains tax arrangements.
"I think the Government does not appear to be listening to a growing body of views; not just from organisations like ACOSS but across into the economic community, who recognise that we need tax rules to be stimulating good investment in productive parts of the economy," Dr Goldie said.
"And just leveraging into existing housing stock is doing nothing in terms of jobs-rich economic growth, which is what we're after."

Mr Hockey has said his second budget was focused "on helping Australians have a go".