Couples with children over 13 years old could soon be cut off from family payments after Labor agreed to back government measures.
But plans for a yet-to-be-revealed childcare package are now in limbo after Labor revealed its position on controversial family tax benefit cuts.
The opposition is backing one part of broad legislation to remove family tax benefit part B from couples once their children turn 13, a loss of about $3139 a year.
With Labor support, the measures - a saving of about $485 million to the budget - will likely clear parliament.
However, the opposition is shielding grandparent carers and single parents from the cuts, arguing it's unfair for them to lose about $4700 a year.
It's also blocking the cessation of family payment supplements.
The government originally wanted to cut off families once their youngest child turned six but increased the cut-off age to 13 with new legislation.
Labor leader Bill Shorten, who argued strongly against the previous measures, acknowledged the opposition had compromised in accepting cuts to couple families.
"We're saying that couples, once their child is older than 13 we think (they have) a better opportunity of being able to try and make ends meet," he told reporters in Canberra on Tuesday.
The government will pressure Labor to spell out how it plans to pay for a $3.5 billion childcare package designed to help more mothers return to work.
The government planned to pay the package, which includes a new childcare subsidy, with the family benefit cuts.
But Labor says the two separate measures are being linked for political purposes, and one group of families shouldn't lose out for improvements to another group.
