The Budget highlights in the morning will be focused squarely on a few key issues covered off in the Budget handed down tonight.

Housing, Tax Reform, Fuel and the War.

There will be much debate as to whether the Prime Minister has backflipped on the negative gearing tax incentive for investment in housing.  And – given the clips on socials over the last few days – if a backflip is going against what you have previously said – then  the proof is in the pudding.  That said, there is an immense strength as a leader in pushing through a major reform, especially one that had been previously dismissed.

Behind the headlines, there are a number of measures that are specific to the Family & Relationship Services Sector.

We had already received advice from the Attorney-General’s Department that funding for Family Law Services under the Family and Relationship Services Program would not be cut.  And in technical terms that is certainly the case.  We know there has been a knock backwards to the current funding levels due to the tapering of the supplementation funding and it is a pity this could not be rectified.  However, to manage to get through the Federal Budget relatively unscathed was a huge success.

That said, the loss of the Family Law Pathways Network program and the Court Network program is reflected in the budget papers and figures.  We continue to make a case to the Attorney-General about that decision  in the hope of securing a change of mind.

For the DSS funded Families and Children Program, tonight’s budget delivers confirmation that the existing programs – Family and Relationship Services, Specialised Family Violence Services, Communities for Children Facilitating Partners Program, Children and Parenting Support and the Family Mental Health Support Services – will be consolidated into a new program the Government has named the Children and Family Support Program, which will come into effect on 1 July 2027.

In addition – the left of field news is that the new program has secured an increase in funding.  Over 5 years there will be an additional $171.7 million invested into this program – over and above the existing appropriation of $1.4 billion over the four years from 2026-2027 for the existing child and families programs.  In the budget papers it says that the “Government is investing to strengthen services for children, young people and families, particularly those experiencing the greatest disadvantage and vulnerability including those at risk of or experiencing family violence.”

Whilst the Federal Budget tonight heralds a win for the Department given they have secured a technical increase in funding for the program, I am acutely aware that the loss of/tapering of the Supporting Community Sector Organisations (the October Budget of 2022 measure) at the end of this financial year is being felt by members as they open up their funding variation offers coming through from the Department.  Although separate to the Budget process – we have calls in with the Department seeking confirmation of supplementation and indexation amounts to be received in this upcoming financial year.

When it comes to the FaC Reform process, we have been receiving regular advice from the Department the Budget outcome was a key milestone in that journey.

Although I do not have a lot of detail, what I have been told is the new program  will not be put out to an open grant process.  Instead, the decision has been taken by Government to work with current/existing providers to ascertain how they would deliver on the NEW program guidelines – without going to tender/grant process.  As we know the FRS sector has often been on at the forefront of policy and program reforms and this example will be no different.  In short, I believe the FRS sector will be the ‘early adopters’ for the ‘relational contracting’ regime the Department is looking to introduce.

FRSA has been privy to conversations and development of the relational contracting model and whilst there is work to be done, the intention is good.  We will be coming out to the sector to engage in a consultation process around a Relational Contracting Grant template DRAFT in the first week of June.

If you are at Conference next week, just a reminder that we will have Deputy Secretary Corri McKenzie joining us and she will be open to all the tricky questions you may have.