Coalition and Labour Agree to Cuts To Baby Bonus

The Coalition and Labour have agreed to cut the ‘baby bonus’ style payment in an effort to save money and arrest debt. The cut to the baby bonus is designed to protect welfare recipients’ payment of a $5 per week clean energy supplement.

The payment was to be paid to eligible families with a youngest child one year old, and would have translated to an extra $1000 per year, through an increase in Family Tax Benefit Part B (FBT-B) payments.

Labour have compromised on this particular payment in order to reduce other cuts affecting members of the community on the lowest income. The clean energy supplement would have been cut from Newstart, disability payment, carers and the aged pension payments.

Labour front-bencher, Brendan O’Connor told Sky News: “I think it’s important that, when we look to rectify what are clearly problems with our budget over the forward estimates and beyond, that we do so with an eye to make sure that people that are most vulnerable in our society are not being punished unduly.”

Treasurer Scott Morrison has said that these cuts are to ensure that future generations don’t pay higher taxes, and still enjoy the same standards of services which we enjoy today.

While the bill has not yet been passed, it is said that the National party are strongly opposed to the cuts. However, the Coalition and Labour are working together, both making compromises in an effort to have the omnibus savings bill passed and it will only be a matter of time before it is passed. The increase in FBT-B payments would have cost the Government $1.4 billion over the next 10 years.

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