Crossbench senator Derryn Hinch has vowed to vote against welfare cuts to fund the federal government's proposed childcare reforms.
Senator Hinch has urged the government to split the childcare reforms from its so-called omnibus legislation, vowing to support the reforms if they were amended to stop rich families getting taxpayer-funded childcare rebates.
"Under the government's plan, a family earning $500,000 a year is entitled to a taxpayer-funded childcare rebate of 20 per cent. This stinks," he said in a statement on Monday.
"How they can justify giving a rebate to a wealthy family like this, while proposing to cut payments to pensioners and single parents on low incomes, is beyond me."
Pressure is increasing on the government to split its omnibus bill, which bundles the childcare changes with welfare and family payment cuts it says are necessary to cover the $1.6 billion boost to fee subsidies.
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