In uncertain economic and geopolitical times, this Federal Budget is certainly more ambitious than many we have seen in recent years.
The Albanese Government has sought to respond to several major national challenges at once – including cost-of-living pressures, an ageing population, workforce shortages and growing demand for healthcare and social supports.
For multicultural communities, the Budget contains several important measures, particularly in aged care and migrant workforce participation.
Aged care reform and multicultural seniors
Multicultural community organisations raised concerns about service costs under the Support at Home program during recent ECCV consultations with multicultural seniors and aged care providers.
Notably, the Budget includes $1 billion over four years for the Commonwealth’s Support at Home program. Under these reforms, showering, continence management and dressing will be reclassified as clinical care services.
Removing co-contributions for these essential supports will help improve affordability and access for older Australians with complex care needs.
This investment is especially significant given Australia’s increasingly culturally diverse ageing population, with 37% of older Australians born overseas, the majority from non-English-speaking backgrounds.
Migrant skills recognition and workforce participation
The Budget’s allocation of $85.2 million over four years to accelerate skills assessments for migrant trades workers is also a welcome first step toward addressing structural weaknesses in Australia’s skills and qualifications recognition system.
Too many highly qualified migrants remain underemployed due to fragmented and opaque recognition processes, with around 44% of permanent migrants working below their skill level despite strong demand in sectors such as healthcare, engineering and construction.
ECCV believes significant further investment will still be needed to unlock the existing skills and experience of migrant workers and help address persistent labour shortages.
Positive steps – but unfinished business for multicultural Australia
The Federal Budget includes a number of positive measures across aged care, healthcare, women’s health, employment services and migrant skills recognition.
But there remains unfinished business when it comes to multicultural Australia.
Long-term investment in multicultural policy, anti-racism initiatives and community infrastructure remains essential – including implementing the Multicultural Framework Review and the recommendations of the National Anti-Racism Framework.
While the 2026–27 allocation for Refugee, Humanitarian, Settlement and Migrant Services is higher than originally budgeted for 2025–26, it remains substantially below the previous year’s actual expenditure, representing a significant reduction in funding overall.
At a time when many multicultural communities continue to face rising costs, discrimination and growing demand for community support services, sustained investment in settlement and multicultural infrastructure remains critical.
Quotes
“This is a bold Budget which includes a number of welcome initiatives. Strengthening multicultural Australia also requires a bolder outlook with more long-term investment than provided in the budget.”
“The Multicultural Framework Review provides a compelling blueprint for further government action, while the Australian Human Rights Commission’s National Anti-Racism Framework sets out practical recommendations to help address racism.”
Farah Farouque, ECCV CEO
“At a time of rising anti-migrant sentiment both here and globally, multicultural Australians expect and deserve strong leadership and meaningful commitments from government.”
“Investing in multicultural communities, anti-racism initiatives and community infrastructure is essential to ensuring Australia remains a fair, cohesive and inclusive society.”
Silvia Renda, ECCV Board Chairperson
Further Reading
Our affiliates at the Federation of Ethnic Communities’ Councils of Australia (FECCA) have provided the following Budget analysis: Resilience and Reform for All
Information on specific Budget spending directed at Bondi attack response: Guardian Australia
ECCV’s submission on the Transition of CHSP to Support at Home: Read here
