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What you stand to lose under budget cuts

Oxley MP Milton Dick.
Oxley MP Milton Dick. DAVID FOOTE

FEDERAL Member for Oxley Milton Dick says families, pensioners and young people will be the hardest hit following proposed budget cuts under the Government's omnibus bill.

In reaction to a statement released by the Government over the weekend, Mr Dick said people were sick and tired of cuts to their household budget and that a substantial number of families would be affected by the bill.

"There are 14,334 families in our local area who receive Family Tax Benefit Part A, of which many will be worse off as a result of this latest cut," Mr Dick said.

"This is in addition to 11,477 families who will lose $354 as a result of the abolition of the Family Tax Benefit Part B End of Year Supplement.

"Labor is happy to work with the Government on sensible childcare relief, but not at the expense of robbing Peter to pay Paul. Families deserve better."

The Federal Government is determined to pass the Omnibus Bill over the next two weeks after new data suggested that Australian families in the June 2016 quarter faced a fee spike of almost eight per cent.

Education and Training Minister Simon Birmingham said the data illustrated a broken early education and care system and that urgent action must be taken.

"The data showed that, while the Turnbull Government had reduced fee increases when compared with the 10-year average of 6.9%, "temporary stop-gap" measures were not enough to stem the pain for Australian families," Mr Birmingham said in a statement.

A 6% increase in child care fees - including a 6.3 per cent increase in Long Day Care fees - painted a "disturbing picture" that will hit both hard working families and taxpayers.

"That's why the Turnbull Government's early education and care reforms represent increased investment that will make the system more accessible, affordable and fairer for around one million Australians, with low and middle income families the greatest beneficiaries from the package," he said.

Changes to the childcare system appear likely to be blocked by both Labor and the Senate due to concerns of the cutting of funds to other services.

The Early Childhood and Child Care in Summary June quarter 2016 report can be found at: https://www.education.gov.au/child-care-update

What you stand to lose:

Cuts to Family Tax Benefits 1.5 million families will be affected by cuts to the FTB. For example, a typical family with two children and an income of $60,000 will be $750 worse off per year.

Cuts to the Energy Supplement. Scrapping the Energy Supplement to new pensioners will mean a cut of $14.10 per fortnight to single pensioners or $365 a year. Couple pensioners will be $21.20 a fortnight worse off or around $550 a year worse off. People with a disability, carers and Newstart recipients also stand to be affected.

Young jobseekers to wait five weeks for Newstart - Jobseekers under the age of 25 will have to wait five weeks before they can access Newstart.

Cut support to Young People - Young people aged between 22 and 24 will be pushed from Newstart on to Youth Allowance, losing around $48 a week, or almost $2,500 a year.

Cuts to Paid Parental Leave - 70,000 new mums will have their Paid Parental Leave cut by an average of $5,600.

Pensioner Education Supplement and Education Entry Payment To be scrapped.

Cuts to migrant pensioners - Pensioners who spend more than six weeks overseas visiting family and friends will have the rate of their budget cut. Currently, pensioners can stay overseas for 26 weeks and receive their full pension. Following that time, the pension is reduced to a rate that depends on the number of years they have resided in Australia. The new cuts will mean that after six weeks overseas, pensioners who lived in Australia for less than 35 years will have the rate of their pension cut.

Topics:  budget cuts milton dick



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