TasCOSS chief executive Kym Goodes said housing availability and affordability was the most pressing need for many Tasmanians.

“Recognition of this in the federal budget through negotiations to waive the housing debt the State Government owes to the Commonwealth would signal that our federal politicians are listening and understand the high levels of housing stress families are experiencing,” Ms Goodes said.

Leading economist Saul Eslake agreed that funding on the housing front and the debt to the commonwealth would help Tasmanians.

He said he hoped the budget contained details on a new agreement on affordable housing and homelessness programs.

“We of course have a big problem here, it’s a running sore for the new government,” Mr Eslake said.

“It would be good if there was more funding for affordable housing, that’s a particular concern for Tasmania.

“Almost a quarter of what Tasmania gets from the commonwealth each year for affordable housing programs goes back to the commonwealth in interest on our debt.

“Tasmania’s position is worse than that of any other state and Victoria and South Australia have done deals with previous federal governments on this.”

Ms Goodes said rather than tax cuts she hoped the budget would lift the rate of Newstart and other payments to jobseekers, single parent families and students.

“Tasmanians do not want to see big corporations such as the banks benefit from tax cuts while many Tasmanian families are struggling to put food on the table or pay their bills,” she said.

“Spending cuts and a failure to grow services in line with demand have hurt households through and left one in six of our children or 731,000 under the age of 15 living in poverty.”

Mr Eslake said the focus should be on restoring the federal budget to surplus.