Unions call for Budget to address housing costs

“Education unions are urging the Albanese government to use its federal budget to tackle worsening inequality across Australia’s schools, warning that rising housing costs, workforce pressures and funding shortfalls are undermining the sector’s stability. The Australian Education Union (AEU) has warned Labor that teachers, principals and education support staff are increasingly unable to afford to live in the communities they serve, with housing costs now a major contributor to workforce shortages. Federal president Correna Haythorpe pointed out that median house prices in Sydney have climbed to more than 13 times the average teacher’s salary, while in Victoria, she said nearly half (43 per cent) of all teaching positions are located in areas where a graduate teacher could not afford to rent a one‑bedroom property. “Housing costs are increasingly pricing teachers and education support staff out of the communities where they work,” Ms Haythorpe said. “In this budget we need to see reforms that make the system fairer and more sustainable.” The Independent Education Union (IEU) has also highlighted the federal budget as an opportunity to provide meaningful cost‑of‑living relief and maintain momentum on long‑term education reform. The Union said many of its members are facing rising living costs alongside protracted wage disputes, with housing affordability and fuel prices placing additional strain on household budgets, calling for targeted federal investment to support essential workers, including measures to improve housing access for teachers, support staff and early childhood education and care (ECEC) professionals. The IEU also urged the government to extend the ECEC Worker Retention Payment, which underpins higher wages for around 200,000 educators and is due to expire this year. It said payment rates for student teacher placements should be increased, and HELP debt relief expanded to graduates working in a wider range of regional and remote communities. The union further called for renewed national leadership on teacher workload, arguing that the National Teacher Workforce Action Plan , released in December 2022, requires fresh investment to deliver practical workload‑reduction measures in schools. Both unions warned that broader policy changes, including proposed reforms to the NDIS, must not shift additional pressure onto school‑based support services already struggling to meet rising student wellbeing needs and increasingly complex classroom behaviours. The AEU also raised concerns about the government’s proposed $463 million in savings from school disability funding. Public schools educate the majority of students with disability, yet many are forced to redirect funds from other areas to meet unmet need. A recent AEU survey found principals were reallocating an average of $147,000 per school to support students with disability. “There are more than 200,000 students in the public system who have been assessed as having a disability yet receive no funding,” Ms Haythorpe said. “This budget must invest in the services and supports that students rely on, not deepen inequity.” Some of these services could be provided under the Thriving Kids program , particularly if they are situated in schools, as has been suggested. The state government-run scheme will only be for children under eight with mild developmental delay or a diagnosis of autism with low support needs. Concerns have been raised that this model could divert funds from other priorities in schools and dilute their focus on education. The ballooning cost of the NDIS has come under immense scrutiny. Picture: NCA NewsWire/Nikki Short. Some $15bn will be cut from the National Disability Insurance Scheme (NDIS) over the next four years under sweeping reforms announced by Health Minister Mark Butler. The changes will target “scheme inflation” and crack down on eligibility requirements. Mr Butler said the reforms would reduce the scheme’s cost to $55bn over forward estimates instead of more than $70bn in 2030, as current projections show. The changes will also result in about 160,000 people removed from the scheme by the end of the decade. Mr Butler insisted the changes were not a budgetary decision but designed to tackle the ballooning cost of the program, which had become an easy target for rorters and organised crime. “I want to be really clear, this is exactly the package I would have taken to the Expenditure Review Committee, no matter what the budget context, because this is the right package for the NDIS, and it’s the right package for participants,” he said. Budget 2026/27: What we know so far Last month, the International Monetary Fund (IMF) warned that intensifying energy price shocks caused by the Iran war could trigger a global recession. It cautioned governments, including Australia’s, to rein in public spending to combat high inflation. The Reserve Bank of Australia (RBA) issued a similar warning on Tuesday after delivering the country’s third consecutive rate hike this year. Mr Chalmers has himself warned the Australian economy is “hostage to economic turmoil” but promised the budget will deliver $64bn in “reprioritisations” and savings. He told reporters on Friday that fuel security, cost of living, housing, productivity, tax reform, and “a very substantial savings package” were the budget’s key priorities. “This is all about making our budget more sustainable over time,” he said. Treasurer Jim Chalmers has insisted the 2025-26 budget will be ‘ambitious’. Picture: NCA NewsWire/Martin Ollman. Housing An extra $2bn has been earmarked in the federal budget for critical infrastructure – like roads, water, power and sewerage – as part of the Albanese government’s efforts to propel housing construction. The Local Infrastructure Fund will support up to 65,000 homes built over the next decade. Funding will go to local governments and state utility providers, with $500m reserved for regional Australia. Mr Chalmers described Labor’s housing plan as “pro-aspiration” and “pro-investment”. Housing Minister Clare O’Neil described the funds as intending to “literally lay the foundations for our country to build more homes”. A further $500m will also be spent on speeding up approvals for housing, energy, and critical minerals projects. That includes $105.9m over four years to provide better access to information, including through the use of artificial intelligence. One-time cash boost The Australian reported this week that Mr Chalmers was preparing to unveil a one-off stimulus – dubbed an “earned income offset”– between $200 to $300 for every Australian who gets a wage or salary and pays tax. It comes after RBA governor Michelle Bullock warned of the impacts of federally subsidised cost-of-living relief on inflation. “The extent to which government make up the shortfalls for households by giving them more money, it makes it harder to dampen demand,” she said. “When governments are spending a lot of money and we’re running up against capacity constraints, then they do need to think about whether or not there’s ways they can help the inflation problem by looking for ways to constrain demand.” Neither Mr Chalmers nor Mr Albanese have confirmed reports of the offset. It is expected that the government will consider extending the fuel excise cut. Picture: iStock/Douglas Cliff. Fuel excise and supply The Prime Minister announced $10bn would go towards bolstering Australia’s fuel security and resilience. He said $7.5bn would go towards providing financial support for the supply of fuel and fertiliser, including loans, equity, guarantees, and insurance, while $3.2bn would fund an onshore fuel security reserve. The reserve would hold about one billion litres. The minimum stockholding obligation will also be raised to increase Australia’s critical fuel reserves to 50 days. Changes to the MSO were first proposed by the Coalition last month when Opposition Leader Angus Taylor sought to more than double it to 60 days. About $10m will be poured into feasibility studies examining “new expanded refinery capabilities”. These would be co-funded with state and territory jurisdictions, with at least one proposal already set to receive joint funding. NewsWire also understands the government is considering extending the fuel excise cut amid pressure from the tourism sector. It halved the tax for three months in March, shaving off 26.3 cent per litre of fuel until June 30. Paired with a reduction in the heavy vehicle road user charge, the measures were estimated at $2.55bn.

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