The Federal Budget has drawn a measured but hopeful response from both the St Vincent de Paul Society and Catholic Health Australia who have welcomed reforms they believe could improve the lives of Australians facing housing stress, poverty, illness and ageing. However, both organisations have also warned that much more needs to be done to ensure vulnerable people are not left behind.
In a statement released following the Budget, the St Vincent de Paul Society National Council described the Government’s reforms to capital gains tax and negative gearing as “a meaningful step toward improving fairness in Australia’s housing system.”
National Council President Mark Gaetani said the reforms acknowledged that housing should first and foremost be treated as “a basic human right, not primarily a vehicle for wealth accumulation.”
The Society has long advocated for changes to property investor tax incentives, arguing that existing arrangements have disproportionately benefited investors while locking many Australians out of affordable housing.
Mr Gaetani said the reforms could help rebalance intergenerational inequality and ease pressure on renters and first-home buyers.
However, the Society stressed that housing reform alone would not resolve the deep financial hardship experienced by millions of Australians.
“With around 3.6 million people in Australia living in poverty, including one million children and young people, and JobSeeker still sitting around 38 per cent below the poverty line, this Budget needed to do more,” Mr Gaetani said.
The Society called on the Government to redirect savings generated through tax reform into increased income support and housing assistance for those most in need.
Mr Gaetani said governments must make “deliberate and brave choices” to ensure the benefits of reform flow to people experiencing poverty, housing insecurity and homelessness rather than simply improving the Budget bottom line.
Health and aged care initiatives
In a separate statement, Catholic Health Australia (CHA) welcomed a range of health and aged care initiatives contained in the Budget, particularly measures designed to support older Australians, improve hospital capacity and assist vulnerable young people experiencing homelessness.
CHA praised increased investment in the aged care sector, including additional Support at Home packages intended to reduce waiting times for older Australians seeking care.
“The expansion of Support at Home packages is essential,” said the Director of Aged Care at Catholic Health Australia, Alex Lynch. “Every additional package funded means someone’s parent or grandparent is getting the support they need to age at home with dignity.”
The organisation also welcomed a $1.1 billion increase to the Accommodation Supplement for residential aged care and new targeted capital subsidies to support providers caring for vulnerable older Australians.
CHA said the measures would help maintain safe and comfortable facilities while broader reforms are developed.
Further support was expressed for changes that will make personal care services — including showering, dressing and continence care — free of charge from October 2026. CHA described the move as a significant step in addressing the aged care crisis.
Beyond aged care, CHA endorsed substantial investment in public hospitals, digital health and mental health services. The Budget includes an additional $24.4 billion over five years for public hospitals, as well as funding to improve My Health Record and digital health systems.
CHA also welcomed funding aimed at helping older Australians leave hospital sooner by transitioning into aged care, noting that many public hospital beds remain occupied by patients awaiting appropriate care placements.
Importantly, the Catholic health body praised a new $59.4 million initiative designed to help young Australians experiencing homelessness access community housing.
CHA’s Director of Mission, Brigid Meney, said stable housing is fundamental to dignity, health and participation in society.
The organisation additionally welcomed expanded support for end-of-life care at home, describing the measure as both compassionate and practical for older Australians wishing to spend their final days in familiar surroundings.
Together, the responses from the St Vincent de Paul Society and Catholic Health Australia reflect a shared Catholic social vision: that economic policy must ultimately be judged not simply by financial outcomes, but by its impact on the dignity and wellbeing of the most vulnerable members of society.