The Turnbull Government yesterday launched its welfare omnibus bill, which seeks to generate billions in Budget savings over four years.
This bill involves a range of measures, including:
Savings (Total = $7.5 billion):
- Phasing-out of the Family Tax Benefit (FTB) end-of-year supplement by 1 July 2018 (saving: $4.7 billion);
- Ending carbon tax compensation for new welfare recipients from 20 September 2017 (saving: $933.4 million);
- Abolishing FTB Part B for single parent families when the youngest turns 17 (saving: $440 million);
- Requiring unemployed people aged between 22 and 24 to access Youth Allowance instead of Newstart (saving: $431.3 million);
- Ceasing pensioner education supplement (saving: $201 million);
- Extending waiting period for most welfare payments (saving: $189.4 million);
- Extending waiting period for under-25s receiving Youth Allowance to four weeks (saving: $169.5 million);
- Pensioners that have worked for less than 35 years in Australia will have benefits cut-off after they have been overseas for six weeks (saving $168.4 million);
- Freezing for three years eligibility thresholds for government payments (saving: $160 million);
- Ceasing payment of pension supplement after six weeks temporary absence overseas and immediately for permanent departures (saving: $123.6 million); and
- Ceasing education entry payment (saving: $42.3 million).
Costs (Total = $4.5 billion):
- Increasing FTB Part A by $20.02 per fortnight for each child up to 19 (Cost: $2.4 billion);
- Introducing new childcare reforms (Cost: $1.4 billion);
- Increasing maximum paid parental leave from 18 weeks to 20 weeks (Cost: $688 million);
- Automating income estimation for welfare (Cost: $38.1 million);
- Incentives for unemployed to pick fruit (Cost: $27.5 million); and
- Training for under-25s waiting for Newstart (Cost: $0.8 million).
Speaking to ABC News this morning, Social Services Minister Christian Porter admitted that 1.5 million Australians will see a reduction in FTB supplements, partly offset by 1 million people receiving enhanced child care support:
Christian Porter said all 1.5 million families who receive FTB payments would see their annual supplements cut.
“The supplements are scaled down for all the people in the system, then there is a $20 increase (per week for FTA-A recipients) and those two interact,” Mr Porter told reporters at Parliament House.
He added 1 million children and their families would benefit from the changes to child care, though he was unable to say how many would take advantage of the measures.
“This is once-in-a-generation reform to child care that Australian families are absolutely screaming out for,” Mr Porter said, who argued an additional 1 million children who attend after-school care could also benefit.
Labor has been quick to oppose the omnibus bill. From The Australian:
“They say you can only get the childcare if you take the cuts,” shadow treasurer Chris Bowen told ABC radio on Thursday.
“These are just the same old cuts which the government’s been trying since 2014. We’re not interested in that game”…
The opposition is also concerned about an activity test the government proposes for a new childcare subsidy and support for indigenous and rural parents.
While it was willing to work with the government on those issues, Mr Bowen said the coalition had shown no inclination to listen.
The Turnbull Government could have a tough sell trying to convince families that they need to give away tens-of-billions of dollars to corporations via tax cuts at the same time as their welfare payments are cut.
