Families to feel budget pain

Parents receiving government assistance towards the cost of raising their kids have won a small reprieve before budget pain begins for some from next year.





Payment rates for the Family Tax Benefit will remain at current levels until July 2016.

But from 2015 the Abbott government wants families booted off part B when their youngest turns six years old, saving $1.9 billion over five years.

Families with a youngest child aged six and over now will continue receiving the payment until June 30, 2017.

Form mid-2015 there will be a new part B income test of $100,000, down from $150,000.

The measure will save $1.2 billion over four years.

The part A income threshold will be set at $94,316.

There will be a part A end-of-year $600 supplement and $300 for those eligible for part B.

From July 2015 the government is tightening the eligibility for the big families supplement worth $313.90 for each child.

Only families with four or more children will receive the supplement saving the government $377.7 million over four years.

There's some good news for single mothers hit by welfare cuts under the previous Labor government.

Tens of thousands of single mothers were left $60 to $100 worse off a week when they were pushed off parenting payments and onto the Newstart Allowance.

The Abbott government will deliver some relief with a new supplement for low-income single parents worth $155 million over four years.

From July 1, 2015 single parents receiving the maximum rate of Family Tax Benefit part A will receive an extra $750 for each child aged between six and 12, once their youngest turns six.

Labor's school kids bonus, worth $410 a year for primary school pupils and $820 a year for high school students, is for the chopping block.

The payment was linked to the minerals resource rent tax which the Abbott government wants to abolish.


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Source: AAP


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