Submission: Budget Policy Statement 2025

Our organisation expresses disappointment with the 2025 Budget Policy Statement, criticising the government’s focus on improving its balance sheet through OBEGAL reductions instead of prioritising child poverty reduction in its economic and fiscal policies.

The Budget Policy Statement fails to explain how its policies will reduce child poverty, raising concerns about this omission. Our organisation rejects the government's premise that economic growth alone will alleviate child poverty, arguing that evidence suggests prosperity unevenly benefits the wealthy while failing to lift low-income families. Without addressing wealth accumulation and inequality, economic growth does not necessarily improve the well-being of poor households.

By positioning child poverty reduction as a by-product of economic prosperity, the government abdicates direct responsibility, instead leaving the issue to market forces. This is reinforced by expenditure cuts to public services and welfare transfers, which worsen financial and social hardship for struggling households.

Furthermore, the Budget ignores the urgency of child poverty and its long-term damage, particularly on children’s cognitive development and educational attainment. The government’s negligence on this issue contradicts its goal of building a strong future workforce, as poverty undermines children’s potential and the country’s future prosperity.

Acknowledgement

The author sincerely thanks M. Claire Dale and an anonymous reviewer for their valuable feedback. Appreciation is also extended to Max Rashbrooke for his insightful analysis, which has informed this submission.