The federal government has trounced the coalition after crossbench MPs combined with Labor in the lower house to pass a $2.1 billion package of cash payments for parents to pay for the school needs of their children.
Prime Minister Julia Gillard and Treasurer Wayne Swan had spent most of Wednesday talking up the SchoolKids Bonus, which was one of the centrepieces of the 2012/13 budget.
The draft laws will deliver to 1.3 million families cash payments of $410 a year for primary school children and $820 a year for secondary students once they are passed in the Senate.
The first payments - replacing an education tax refund and funded by mining tax proceeds - are due to go out before the end of this financial year and to be paid every January and July thereafter.
Many coalition MPs on Wednesday spoke out against the laws, which now need to pass the Senate on Thursday so the payments can begin on time.
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But just after 5pm (AEST) - less than 24 hours after Mr Swan delivered his budget speech - the lower house passed the bill.
All the crossbenchers had signalled support for the bill, giving Labor the numbers it needed.
Earlier, Ms Gillard told parliament Opposition Leader Tony Abbott, who opposed the legislation, was putting the "privileged few" before families.
"We have decided to take the benefits of the mining boom and benefit working families around the nation," she said.
"The leader of the opposition, when asked about whether or not these payments would be continued if he was ever prime minister ... said Australian families would just have to wait and see.
"That is code for him and (mining magnates) Clive (Palmer) and Gina (Rinehart) turning up on their doorstep and demanding the family payments back."
Some MPs had been concerned the cash payments might be squandered by some parents on alcohol or poker machines.
Meanwhile, Mr Abbott, who will give his budget reply speech on Thursday night, told reporters the budget was full of "bribes" and predicted the $1.5 billion surplus would not be delivered.
He was also critical of plans to raise the commonwealth debt ceiling to a record $300 billion.
"The really extraordinary thing about this budget is the fact that (Mr Swan's) still going to be out there borrowing day in, day out and has got to take the credit card limit from $250 to $300 billion," Mr Abbott said.
Mr Swan said the change, recommended by an independent body, had been made to help smooth out lumpy revenue flows.
