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ACFID alarmed at $813 million in cuts to aid under Coalition costings; urges further consideration

May 1, 2025 | Media Releases

ACFID is alarmed at the release of costings from the Coalition showing cuts would be made to Australia’s international development and humanitarian assistance if they are elected to form government.  

The election costings show a decrease in Australia’s foreign aid budget by $813 million over four years, while maintaining existing development assistance to the Pacific, Indonesia and Timor-Leste.  

The announcement from the Coalition this week that it would increase the lending cap of the Australian Infrastructure Financing Facility for the Pacific (AIFFP) from $3 billion to $5 billion has created confusion, and most Pacific states cannot afford expensive loans. 

As a share of Gross National Income, Australia’s aid spend now sits at just 0.19%, placing Australia 28th among OECD nations in 2024, down from 14th in 2015. These cuts would see Australia slide even further down these rankings.  

ACFID continues to call on all political parties and candidates to commit to increasing Australia’s aid spend to 1% of the federal budget.  

Quotes attributable to Matthew Maury, ACFID’s CEO: 

“At a time when the world is facing huge global challenges, we urge the Coalition to consider the bipartisan commitment to aid that has cemented Australia’s standing in our region over decades.” 

“As Australia’s aid generosity is already declining, today’s announcement if implemented will further exacerbate this trend, leaving us far less generous than our like-minded counterparts and a less reliable global partner.”  

“Yesterday’s announcement of increasing the AIFFP lending capacity has created confusion given that the net result of the Coalition’s election announcements will impact millions of the world’s most vulnerable facing rising hunger, conflict, disease and climate disasters.” 

“The aid budget is already at a historic low – less than 1 cent out of every dollar spent. With the challenges facing Australia and the whole world now is the worst time to be pulling back and making further cuts.” 

For more information or to arrange an interview please contact ACFID Media at  [email protected]  or call 0401 721 064.            

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