According to ABC Fact Check, two days before the September 2013 election, the Coalition promised to "reduce the growth" of the foreign aid budget by $4.5 billion over four years (2013-14 to 2016-17) [1].
Then-opposition treasury spokesman Joe Hockey stated: "We are reducing the growth in foreign aid by $4.5 billion over the forward estimates to fund essential infrastructure here in Australia" [1].
The Coalition's pre-election costings document showed savings of: $600 million (2013-14), $900 million (2014-15), $1.2 billion (2015-16), and $1.8 billion (2016-17) - totaling $4.5 billion [1].
**Critical distinction**: The Coalition promised to cut the *projected growth* of foreign aid, not cut existing aid spending year-on-year.
In practice, ABC Fact Check found the Coalition was "on target to cut the growth in foreign aid spending by $4.8 billion, $300 million more than its commitment" [1].
The cuts were to projected growth, not actual spending**: The Coalition's policy stated that "annual increases in nominal funding in the aid budget" would continue, linked to CPI [1].
The policy rationale**: The Coalition stated it was "unsustainable to continue massive projected growth in foreign aid funding whilst the Australian economy continues at below trend growth" [1].
The savings were explicitly redirected to domestic infrastructure projects: Melbourne's East West Link ($1.5B), Sydney's WestConnex ($1.5B), and Brisbane Gateway Motorway ($1B) [1].
**3.
Labor had already deferred its own aid targets**: Before the 2013 election, Labor had already pushed back its commitment to reach 0.5% of GNI from 2015-16 to 2016-17, then to 2017-18, saving $5.8 billion in projected aid spending during their term [2].
**4.
The broader context of OECD aid trends**: According to the OECD, Australia was the eighth largest aid donor in 2013, delivering 0.36% of GNI in assistance [2].
**Original Source 1: Sydney Morning Herald (SMH)**
- The SMH article [3] is an opinion piece by Dr Rebecca Valenzuela from Monash University's Department of Economics
- SMH is a mainstream, reputable Australian newspaper (Fairfax Media)
- The article presents a balanced perspective, including both criticism of the cuts AND analysis of why aid effectiveness is debated (dependency concerns, corruption issues)
- The article cites UNICEF, World Vision, and academic sources
- **Assessment**: Credible mainstream source, though opinion piece rather than straight news
**Original Source 2: The Big Smoke**
- The website returned a 503 error and could not be accessed
- From the URL and title, it appears to be an opinion/analysis piece
- **Assessment**: Could not verify credibility; appears to be a commentary/opinion site
A detailed comparison by ABC Fact Check in 2015 revealed that Labor also made substantial "savings" from foreign aid projections:
1. **Labor deferred its 0.5% GNI target three times**: Originally 2015-16, pushed to 2016-17 (saving $2.9B), then to 2017-18 (saving $1.9B) [2]
2. **Labor's pre-election economic statement (August 2013)**: Saved another $966 million over four years [2]
3. **Total Labor "savings"**: $5.8 billion in deferred aid growth during their time in government [2]
4. **Comparison of actual spending increases**:
- Labor increased aid from $3.155B (2007-08) to $5.666B (2013-14) - an 80% nominal increase [2]
- In real terms (accounting for inflation), this was a 55% increase [2]
5. **Tanya Plibersek's claim**: In 2015, the Labor foreign affairs spokeswoman claimed Labor "doubled the aid budget when we were in government" and that the Coalition "has cut $11.3 billion" [2].
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ABC Fact Check rated this "overblown" - Labor's increase was 80% (not 100%), and the $11.3B figure represented projected savings from Labor's inflated forward estimates, not actual cuts to spending [2].
**Key finding**: Both parties deferred aid targets and reduced projected spending.
**The full story requires understanding both perspectives:**
**Criticisms of the cuts** (as expressed by aid organizations):
- UNICEF warned the cuts came "at the expense of children's lives" [3]
- World Vision called it an "isolationist policy" and said "we should never balance the books on the backs of the poor" [3]
- Aid groups noted Australia was taking over the UN Security Council presidency, and cuts could undermine Australia's reputation [3]
- Programs in South-East Asia were cut by 30%, affecting education, health, and humanitarian assistance [4]
**The government's justification**:
- The Coalition maintained it remained committed to the Millennium Development goal of 0.5% of GNI "over time, but cannot commit to a date given the current state of the federal budget after six years of Labor debt and deficit" [1]
- The policy redirected funds to domestic infrastructure to boost economic growth
- The Coalition argued it was unsustainable to maintain projected aid growth while the economy was below trend [1]
**Comparative context**:
- This was **NOT unique to the Coalition** - both major parties deferred aid targets when fiscal pressures arose
- Labor made $5.8B in similar "savings" from aid projections during their term
- The 0.5% GNI target has been an aspirational goal for both parties since at least 2008, but neither has delivered it
**Expert analysis**:
- An OECD review in 2013 noted that achieving 0.5% of GNI would require "a significant scaling up of aid by billions of Australian dollars" [2]
- Academic analysis notes that while foreign aid has challenges (dependency, corruption), AusAID had a relatively strong record with fraud losses of only 0.017% - better than many government departments [3]
The Coalition did promise to reduce foreign aid growth by $4.5 billion over four years [1], and ultimately delivered $4.8 billion in such reductions [1].
The claim omits that Labor had already made $5.8 billion in comparable "savings" by deferring their own aid targets three times during their government [2]
4.
Neither party achieved the 0.5% GNI target, suggesting this is a systemic issue of aspirational commitments vs fiscal realities, not unique to the Coalition
The claim is factual in the narrow sense but lacks crucial context about what the $4.5 billion actually represented and the comparable actions by the previous Labor government.
The Coalition did promise to reduce foreign aid growth by $4.5 billion over four years [1], and ultimately delivered $4.8 billion in such reductions [1].
The claim omits that Labor had already made $5.8 billion in comparable "savings" by deferring their own aid targets three times during their government [2]
4.
Neither party achieved the 0.5% GNI target, suggesting this is a systemic issue of aspirational commitments vs fiscal realities, not unique to the Coalition
The claim is factual in the narrow sense but lacks crucial context about what the $4.5 billion actually represented and the comparable actions by the previous Labor government.