Diversity Council Australia (DCA) welcomes measures in the 2026-27 Federal budget aimed at easing cost-of-living pressures, supporting long-term economic productivity, and taking important steps to improve access to work for all Australians. However, DCA cautions that Australia’s future prosperity depends on ensuring inclusion and equitable access to opportunity are at the centre of economic reform.
Delivering inclusive cost-of-living support
As many people across Australia continue to experience financial strain, DCA recognises the importance of measures designed to provide economic relief for workers and households, including income tax cuts, increased fuel security, a stronger Pharmaceutical Benefits Scheme, and crucial tax reforms aimed at making housing more affordable for young people and families.
However, DCA emphasises that economic security is not experienced equally across the workforce. DCA’s research consistently shows that class marginalised people and people from other marginalised and underrepresented groups – including women, people with disability, culturally and racially marginalised people, First Nations people, migrant workers and LGBTQ+ people – still face unacceptably high levels of exclusion, discrimination and systemic barriers to secure work and career progression.
Productivity that works for everyone
The Budget’s focus on productivity reform presents an important opportunity to broaden the national conversation about what drives sustainable economic growth. Investments in innovation, infrastructure and regulatory reform are important, but Australia cannot improve productivity without addressing barriers to fair and equitable participation in work.
DCA research consistently demonstrates a strong relationship between inclusive workplace cultures and improved employee engagement, wellbeing, innovation and retention – all key drivers of productivity. Diverse teams and inclusive leadership are not only good for people, they are essential to organisational performance and national economic resilience.
“Inclusion is not separate from economic policy, it is fundamental to it,” said Catherine Hunter, CEO of DCA.
“To lift productivity, Australia must fully utilise the skills, perspectives and capabilities of all people. Policies that improve inclusion, participation and equity are not optional extras, they are essential to Australia’s long-term economic success.”
Essential reform to skills assessments for migrant workers
DCA commends the government’s $85.2 million investment to make skills assessments faster and more accessible for migrant workers. As a supporter of the Activate Australia’s Skills campaign, convened by Settlement Services International (SSI), DCA has long advocated for fair and practical reform to skills recognition.
“As the nation grapples with stalling productivity, it’s unacceptable that thousands of qualified migrants in Australia are locked out of working at their full skill level,” said Catherine.
“This investment is a welcome step towards unlocking that untapped talent. By making skills assessments faster, fairer and more accessible, migrants can move into roles where they’re most needed, boost workforce participation, and lift national productivity.”
NDIS reforms must centre lived experience
DCA is deeply concerned by the substantial cuts to the NDIS, which are projected to reduce participant payments by $37.8 billion over four years. These changes risk significantly reducing access to vital services for people with disability, neurodivergent people, and carers, with more than 160,000 participants expected to be diverted away from the scheme alongside changes to social and community participation support. While it’s important to ensure the long-term sustainability of the NDIS, reforms must not come at the expense of equitable access to support or meaningful participation in work and community life.
DCA’s research shows that people with disability continue to face significant barriers at work, including lower levels of inclusion and higher levels of discrimination and harassment. Accessible and adequately funded support systems are essential to enabling workforce participation and supporting inclusive workplaces where people with disability can thrive.
Any changes to the scheme must be developed through genuine engagement with the people those decisions affect. Co-design that includes people with disability, neurodivergent people, carers, and disability-led organisations will help to ensure reforms are fair, effective and grounded in lived experience.
Economic reform that delivers both productivity and fairness
DCA also welcomes increased investment in the employment services system, the child support system, and the expansion of paid parental leave to 26 weeks. These measures represent important steps toward strengthening equity in Australia and help to improve economic stability and workforce participation for women and other groups that experience marginalisation.
“We welcome continued investment in care, health and workforce participation measures across the Budget and encourage government, business and community leaders to work together to ensure economic reform delivers both productivity and fairness,” said Catherine.
“At the heart of any reforms, we acknowledge that the right to work is a fundamental human right. It encompasses the right to dignified, safe conditions, fair wages, equal opportunity and protection against discrimination and harassment, forming a core component of human dignity.”