Baby bonus, worth $1000 a year for eligible stay-at-home mums, has been scrapped.
The Coalition and Labor have agreed to cut back a baby bonus payment worth $367 million as part of the deal to pass the $6.3 billion omnibus savings bill.
The Federal Opposition refused to support the axing of carbon tax compensation for those who are wholly reliant on welfare recipients including Newstart recipients, aged pensioners and disability pensioners. The so-called clean energy supplement is worth $4.40 a week for someone on the dole, reports 7 news.
While the payment will be scrapped for new recipients of family tax benefits or the Commonwealth seniors health card.
Labor has also refused to agree to cuts to the child dental scheme and limited the proposed $1 billion cut to the Australian Renewable Energy Agency (ARENA).
Shadow treasurer Chris Bowen, who negotiated the compromise with Finance Minister Mathias Cormann, said Labor supported 20 of the 24 measures in the omnibus bill but delivered $6.3 billion in total savings – more than the Government had first planned.
Opposition leader Bill Shorten said Labor had secured significant amendments to protect low income families and ARENA’s “abolition from the climate sceptics”.
“Today is a win for families on low incomes, today is a win for Australians committed to real action on climate change,” Opposition Leader Bill Shorten said.
The estimated saving from not proceeding with the baby bonus payment is $367 million over four years, or $1.4 billion over 10 years.
“What we’ve managed to do is come up with a package with negotiated amendments which are bigger, better, and fairer, because Labor understands that it’s fundamental to keep face with our commitments to budget repair but to do so in such a way which doesn’t increase in equality or take actions on the priorities of making sure that we properly fund Medicare, that we properly fund our schools, we prioritise local jobs,” Mr Shorten said.
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