Concerns Over Policy Impact on Social Cohesion

The Coalition’s budget reply has presented proposals that could limit access to essential supports for non-citizens in Australia, sparking criticism. Settlement Services International (SSI) warns that these measures could deepen division during challenging times.

According to SSI CEO Violet Roumeliotis, the proposal would block non-citizens, including permanent migrants who pay taxes, from accessing supports like the National Disability Insurance Scheme (NDIS), parental leave, and the Carer Allowance. "This proposal would mean that people who are living, working, and paying taxes in Australia would be excluded from accessing the very supports they help fund," she noted. The potential for increased inequality and insecurity during a cost-of-living crisis is concerning.

Permanent residents already face waiting periods of up to four years for many social security payments. Further exclusion is unnecessary and disproportionate, according to SSI.

Economic and Social Implications

SSI warned that the proposed changes may lead to unintended economic consequences, particularly affecting skilled migrants who face barriers to workforce participation. Roumeliotis highlights that restricting support could cause skills underutilisation and long-term productivity losses.

The proposal also includes capping net migration at one person per new home built. SSI cautions that this could worsen housing shortages by limiting access to vital construction skills and affecting needs-based migration streams.

Roumeliotis remarked, "Linking migration levels directly to housing supply oversimplifies a complex issue and risks fuelling division." Migrants, often blamed for housing pressures, are among those most affected by the housing crisis.

SSI stresses the importance of enabling individuals to utilise their skills effectively. Denying basic income support while seeking work in their profession may push them into unskilled jobs, leading to significant skills underutilisation.

A more inclusive approach to policy-making is necessary to foster participation and social cohesion. "Australia’s strength has always come from inclusion," Roumeliotis concluded.