In response to the 2025 Federal Budget, Oxfam Australia Acting Chief Executive Dr Chrisanta Muli said:
"In a world facing unparalleled crises, escalating conflict, and growing poverty, the Australian Government's Federal Budget falls short of what is needed to truly address inequality and poverty, both domestically and internationally.
“We welcome the Australian Government’s commitment to stabilising development and humanitarian funding – this goes against the trend of other countries and is a principled and strategic decision, bringing the total to $5.097 billion. However, as a percentage of the Federal Budget, aid has fallen to 0.65%, well short of what is needed to address the scale of the global crises we face and to support those most in need.
“We are pleased to see increases for humanitarian and development in the Indo-Pacific. While this will provide much-needed support to people in the region, it still only a small fraction of what is required, particularly given the withdrawal of funding from other international donors.
“Against the backdrop of the worsening humanitarian emergency in the Occupied Palestinian Territory, extreme hunger affecting millions in East Africa, deteriorating conditions in the world’s largest refugee camp in Bangladesh, and the ongoing impact of climate change, Australia’s aid contribution should be increasing by more than just the annual indexation to keep pace with inflation. Oxfam is calling for the next budget to reach 1% of overall spending on aid to meet the challenges in the region and beyond.
“Domestically, while there are some welcome measures aimed at addressing the cost-of-living crisis, they are insufficient to address the deepening inequality and the housing affordability crisis in Australia. Meanwhile, corporate profits continue to soar, and wealth inequality continues to grow.
“Tax cuts are not the solution for a budget in structural deficit, especially in one of the lowest taxing countries in the OECD. We need to raise revenue by ensuring the super-rich and big corporations pay their fair share. While we welcome the renewed investment in the ATO Tax Avoidance Taskforce, more must be done to tackle tax avoidance. In 2022-23, 31% of large corporations paid no tax., The government must introduce a super profits tax, and reform the system to reduce inequality, increase Jobseeker and fund essential services like healthcare and childcare.
“Climate change continues to devastate Australia and the Pacific, with communities experiencing more devastating disasters year on year. The cost of disaster recovery is growing, and at the same time, Australia continues to fuel the problem by growing fossil fuel subsidies and approving more fossil fuel mines. While we welcome new funding to support communities impacted by climate-fueled disasters, we must end fossil fuel subsidies and make coal, oil and gas corporations pay compensation for the climate damages they are causing.
“Like our Pacific neighbours, First Nations communities in Australia contribute the least to the climate crisis yet are impacted the worst and first. The lack of investment in Country, coupled with a failure to reform Environment Protection Biodiversity Conservation laws and a step back on creating a national environmental protection agency, is a critical gap in this budget. First Nations communities must be given an opportunity to meaningfully participate in and benefit from the energy transition.
“The federal government came into power with a commitment to realise the Uluru Statement from the Heart, yet First Nations communities continue to face systemic injustice, and this pre-election budget fails to deliver on this bold vision. Previous budget commitments towards the establishment of a Makarrata Commission have been dropped, and there is no investment in Treaty and Truth-telling processes at the national level.
“While we welcome investments in initiatives that aimed to improve life outcomes and support First Nations businesses, the budget fails to meaningfully address systemic injustices that persist and continue to harm First Nations communities continuing to impact their ability to thrive. These injustices include the continued over-incarceration of First Nations peoples, at a time when many states are considering new regressive and repressive policies. Calls from the National Aboriginal and Torres Strait Islander Legal Services (NATSILS) for additional investments have also gone unanswered, at a time when the Prime Minister has supported controversial and rushed bail reforms set to be implemented in Victoria.”
For interviews, contact Lucy Brown on 0478 190 099 / lucyb@oxfam.org.au
