Financial Counselling Australia welcomes landmark reforms but calls for more targeted relief

Financial Counselling Australia (FCA) has welcomed landmark system reforms, new investment in gambling harm support, and extension of critical services, while cautioning that many of the measures announced will take time to flow through to people who are struggling right now.

FCA chief executive Dr Domenique Meyrick said the budget includes genuine long-term reforms, but financial counsellors are still hearing urgent distress from households under acute pressure.

“There is a lot to welcome in this budget. Reforms to capital gains tax, negative gearing and trusts tilt the tax system in a fairer, more progressive direction,” Dr Meyrick said.

“But many communities are experiencing sharp cost-of-living pressures and will not see benefits in the short term. We would have liked to see more targeted measures for those doing it toughest.”

FCA also welcomed the Government’s package to address online gambling harm, including $39 million to expand specialist financial counselling support for people affected by gambling.

“Financial counsellors and community workers are reporting increasing concern about the impact of online gambling and gambling-related scams, particularly in remote and First Nations communities,” Dr Meyrick said.

“These harms are spreading quickly through communities already under financial pressure. The additional support is important and necessary but must go hand in hand with the deeper structural reforms the Murphy Review called for.”

FCA also welcomed the $182.6 million child support package to close loopholes enabling systems abuse and non-compliance.

“Strengthening protections for parents in private collect arrangements means more money reaches children and there is less opportunity for the system to be weaponised,” Dr Meyrick said.

“We expect these changes to shift patterns of demand. Greater enforcement visibility may lead more people with child support debt to seek assistance, and we want financial counsellors to be resourced and ready to meet that need.”

While welcoming many measures, FCA said the budget missed an opportunity to better target relief to the groups under the greatest pressure.

“Broad measures such as the $250 tax cut provide modest relief to people who do not need it most, while those facing greater hardship miss out,” Dr Meyrick said.

FCA said there remains significant unmet demand for financial counselling services more broadly.

“Financial counsellors often help households keep the lights on, stay housed, manage debt, recover from disasters and navigate crisis,” Dr Meyrick said.

“We would still like to see further investment in other critical areas, including domestic and family violence responses, small business support, disaster recovery and generalist financial counselling services.”

“Financial counselling plays an important role in containing crisis early and helping people recover before problems become more severe. That benefits individuals, communities and the broader economy.”

FCA said demand for support continues to rise as communities grapple with cost-of-living pressures, housing stress and economic uncertainty.

“These services are essential, but many providers are operating under significant pressure and facing substantial unmet demand across the country,” Dr Meyrick said.

ENDS

Contact: Maura Angle 0418 334 121 [email protected]