As we approach the 2022 Federal Election, our Reactive Advocacy team examine what foreign aid plans are being presented in government and opposition policy.

Official Development Assistance is the term used to refer to foreign aid specifically for the purpose of promoting economic and social welfare in low income countries. In The 2021-22 Federal Budget, $4.0 billion (0.22% of Gross National Income or GNI) was allocated to foreign aid and Official Development Assistance. In the 2022-23 Budget, $4.089 billion has been allocated.

A freeze on increasing foreign aid funding with indexation (to compensate for inflation) was implemented in 2014 and was ended in 2022. 

Government’s Policies
The 2022-23 Federal Budget has officially ended the freeze on increasing foreign aid funding. 

• The Budget includes $460 million in temporary Official Development Assistance, including $314 million for Pacific countries to support COVID-19 vaccination and management costs, as well as to help support the aviation sector and increase travel/tourism. 
• This also includes $65 million in humanitarian aid to Ukraine, as well as $0.5 million to establish the Ukrainian Community and Settlement Support Program to provide additional support to those arriving in Australia after fleeing Ukraine. 

For multiple years, the Government has continued the ‘Pacific Step Up’ policy which involves providing broad-based aid for Pacific Countries and Timor-Leste. 

• The Government will provide $324.4 million over 2 years from 2022-23 to support Pacific Island countries and Timor-Leste to recover from the impacts of COVID-19
• Funding will support Pacific Governments and Timor-Leste to deliver essential services, including COVID-19 testing capacity and vaccine delivery, to enhance food security and to re-establish and sustain air connectivity
• The PacificAus TV initiative will also be extended for 12 months.

Opposition Policies 
The Opposition’s Election Platform states that, if elected, they would aim to achieve, over time, a funding target for foreign aid of at least 0.5% of Gross National Income (GNI). The Shadow Government plans to increase foreign aid expenditure as a percentage of GNI with each year’s Budget until this target is reached/surpassed

The Opposition has pledged to increase Australian Official Development Assistance to Pacific countries and Timor Leste by $525 million over the next 4 years. 

• The funds will be used to support both existing and future projects, designed and implemented in consultation with local stakeholders. 
• Pacific aid projects will support local economic growth, health, education, water, sanitation and hygiene needs, climate change adaptation and resilience, gender equity and disability support. 
• The Opposition would also create a Pacific Climate Infrastructure Financing Partnership to support climate-related infrastructure and energy projects. 

The Opposition aims to ensure that at least 80% of Australia’s aid investments ‘address gender issues and tackling violence against women and children’. 

References
https://www.foreignminister.gov.au/minister/marise-payne/media-release/2022-23-budget-investing-strong-future-advancing-our-national-interests-and-supporting-regional-prosperity
https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview202122/ForeignAidBudget
https://www.dfat.gov.au/about-us/corporate/portfolio-budget-statements/budget-highlights-2022-23
https://www.liberal.org.au/our-plan-safe-and-secure-australia
https://alp.org.au/media/2594/2021-alp-national-platform-final-endorsed-platform.pdf
https://alp.org.au/policies/labors-plan-to-build-a-stronger-pacific-family