Federal Budget 2025: what does it mean for First Nations people?

While investments in early childhood education and Indigenous rangers have been welcomed, the government is receiving some criticism for its support for punitive justice measures.

Naca Feature, Australian Federal Politics, Aboriginal and Torres Strait Islander Peoples, Parliament of Australia,

The Labor government has delivered its final budget before an expected election in the next two months. Source: AAP

First Nations organisations and advocacy groups have given the Albanese government a mixed report card for its 2025 budget, delivered in Canberra on Tuesday night.

While Labor is out spruiking its proposed tax cuts for low and middle income Australians today, the budget's centrepiece, there was little in the way of top-line items for Indigenous peoples across the continent.

The Treasurer Jim Chalmers said the government would be committing more than $1 billion towards Closing the Gap initiatives.
"We’re providing $1.3 billion for Closing the Gap and economic self‑determination for First Nations Australians, with investments in remote community services, opportunities for business, and support for home ownership," Chalmers said in the only reference to Indigenous people during the budget speech.

The proposed investment, along with the government's signature $8.5 billion Medicare package, were welcomed by some advocacy groups.

The Coalition of Peaks, which represents more than 80 Aboriginal community-controlled organisations and receives more than $4 million in funding from this budget, said the changes were "encouraging".

“This budget gives us cause for cautious optimism," lead convener Pat Turner said.

“We’ve seen what’s possible when governments work with us, not around us."
The Treasurer's early childhood education, family safety and care sector measures were also welcomed by the peak body for Indigenous children, SNAICC.

Pressure has long been mounting on governments to improve childcare accessibility and affordability to bolster productivity, workforce participation and children's early development.

Last night's budget confirmed landmark funding, including the $1 billion Building Early Education Fund to expand and build new services in under-served areas.

The activity test has been replaced, with First Nations families able to access 100 hours of subsidised childcare per fortnight regardless of parents' level of work.

SNAICC chief executive Catherine Liddle called it a "very welcome" investment.

“Closing the Gap starts with our children, and the $5 billion commitment to reforming early education and care is an important foundation that will help shift the dial," she said.

The Arrernte Luritja woman also praised the government's commitments towards the Office of the National Commissioner for Indigenous children ($3.1 million), remote food insecurity ($71 million), and domestic violence services ($21 million).

'Crumbs on the table'

The budget did not receive universal acclaim however, with Independent Senator Lidia Thorpe declaring it "more disappointing" than the previous one.

The Victorian senator highlighted the government's shifting rhetoric on aspects of its Indigenous policy since being elected in 2022.

"This government started their term talking big about First Nations justice, and its first budget in 2022 gave us hope that First Peoples justice would be centred on the political agenda," the Gunnai Guditjmara Djab Wurrung woman said.

"Three years later this budget offers so little - just more crumbs on the table. It comes as no surprise that Truth and Treaty are completely off the agenda.

"The government had made clear they already broke that promise."

Of the government's $1.3 billion funding for First Nations initiatives, Senator Thorpe said the majority had already been announced.

She also criticised the significant portion of the $842 million funding for the Northern Territory that would go towards policing efforts.
"We already know that a quarter of that – $205m – goes to the police, who will only hurt and criminalise more of our people and send more of our children into jail," Senator Thorpe said.

"This will widen, not close the gap."

The Victorian Aboriginal Legal Service also took the opportunity to condemn the federal government's support for Victoria's recently announced bail law changes, touted by Premier Jacinta Allan as the country's toughest.

"Last night’s budget leaves a lot to be desired when it comes to investing in measures that will help us reach Closing the Gap targets," said Nerita Wright, VALS CEO.

"For the Prime Minister to come out in support of the new bail laws in Victoria is a new low ... no government can sit back and make spineless commitments to close the gap whilst also supporting laws that we know will discriminate against Aboriginal people."

Bushland budget boost welcomed by Indigenous rangers

Funding to protect millions of hectares of bushland across the country, also announced in Tuesday's budget, was welcomed by Aboriginal and Torres Strait Islander land managers and rangers.

The $250 million investment will help to conserve an additional 30 million hectares.

The commitment aims to help meet the government's goal of protecting 30 per cent of the country's land by 2030.
Chair of Country Needs People, which supports First Nations rangers, Bhiamie Williamson said he would like to see some of the funding reserved and dedicated specifically for Indigenous Protected Areas (IPA).

He said the Indigenous Protected Area estate achieves wonderful outcomes for both Country and community.

"It is on the front lines of mitigating against the impacts of climate change," he told AAP.

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5 min read
Published 26 March 2025 1:15pm
By Dan Butler
Source: SBS, AAP


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