The Facts about Federal Cuts

History of community legal centre cuts under current Federal Government

The Federal Government first announced cuts to community legal centres as part of the Mid Year Economic Outlook (MYEFO) in December 2013. These cuts were scheduled to take effect in July 2015.

In May 2014, on the evening of the Federal Budget, the sector was advised of how the MYEFO cuts would be allocated. Around 60 individual centres nationally – and 14 in Victoria – were advised of funding cuts in 2015–16 and 2016–17. These cuts amounted to $11.8 million over two years and directly impacted legal advice and representation services, with a large proportion impacting specific family violence services.

Following advocacy by the sector, on 26 March 2015 the Attorney-General and Minister Assisting the Prime Minister for Women announced the reversal of the 2015–16 and 2016–17 cuts. This decision was welcomed by the sector.

As a result, Federal community legal sector funding has remained stable from 2014–15 to 2016–17.

Current position

While cuts planned for 2015–16 and 2016–17 were reversed, the Federal Government has locked in a national funding cut for community legal centres of nearly 30 per cent from 2017–18 onwards, with plans to reduce funding by around $12 million in that year from $42.2 million to $30.1 million.

The cuts contradict a 2014 Productivity Commission finding that legal assistance services are underfunded and a recommendation that legal assistance services be subject to an urgent, interim investment of $200 million per year (see rec. 21.4, Volume 1).

The 2017 funding cuts are clearly set out in Budget 2015, and more recently in the National Partnership Agreement on Legal Assistance Services.

Federal Budget 2015

Budget_Pic

Source Budget 2015: Budget Paper 2

National Partnership Agreement on Legal Assistance Services

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Data source: Schedule C, National Partnership on Legal Assistance Services

Both sources clearly show a decline in funding for community legal centres from $42.2 million in 2016–17 to $30.1 million in 2017–18.

September 2015 Women’s Safety Package

On 24 September 2015, Federal Attorney-General George Brandis announced $15 million over three years ($5 million per year) for family violence legal assistance. The funding has mainly been allocated to community legal centres (including three centres of 50 in Victoria). It does not offset the cuts commencing in 2017 by at least $19.9 million on NPA figures.

Dispute over existence of 2017 cuts

The Federal Government has disputed the existence of these damaging cuts – cuts that place at risk free legal help for ordinary Australians with a broad range of common but serious legal needs, including the need of women to seek legal protection from family violence. In 2014–15, 40 per cent of new cases initiated by Victorian community legal centres were family violence cases.

On 24 September 2015, when the ABC asked Senator Michaelia Cash to respond to what community legal centres had said regarding the cuts, she stated:

…it concerns me that there continues to be a false and misleading campaign of misinformation in relation to funding generally. Under the Government there were no cuts to services. Just to put it into perspective, over the next five years, the Government will be providing $1.3 billion to legal aid commissions and community legal centres through what is known as the National Partnership Agreement on Legal Assistance services.

Senator Cash was later questioned in the Senate on this claim.

In his 27 August speech to the 2015 national conference of community legal centres, Attorney-General George Brandis also characterised discussion of a decrease in funding for community legal centres as a misconception.

New restrictions on use of Federal Government funds by community legal centres

In addition to the scheduled funding cuts, the Government introduced two restrictions into the new National Partnerships Agreement that will limit community legal centres’ work, including our work with victims of family violence.

The first is a restriction stating that Commonwealth funds cannot be used for lobbying or public campaigns. Community legal centres draw on their clients’ experiences to advocate for better laws and safer, fairer processes. The new National Partnerships Agreement limits this work.

The second is a new requirement that centres target services to people who are financially disadvantaged. After considerable advocacy by the sector, the Federal Government agreed to a fairly flexible definition of ‘financially disadvantaged’ but the restriction will nonetheless affect centres’ flexibility, including their capacity to help women in family violence situations whose need for legal help is connected to vulnerability and victimisation rather than severe poverty.

Further information

  • 25 September 2015, Liana Buchanan responds to Senator Cash on ABC RN Breakfast regarding the claim of a ‘false and misleading campaign of misinformation’ regarding community legal centre funding.
  • 25 August 2015, Liana Buchanan speaks to Fran Kelly on ABC RN Breakfast on the impact of Federal cuts in Victoria.

Media inquiries

Darren Lewin-Hill
0488 773 535
Communications Manager
Federation of Community Legal Centres