March 31, 2017

The Turnbull Government has today rammed $1.4 billion in cuts to Family Tax Benefit through the House of Representatives. 

By freezing Family Tax Benefit payment rates the Turnbull Government is leaving 1.5 million Australian families and millions of children worse off.

This means that the payments low income families receive will not keep pace with the costs of living.

Labor voted against these cuts to Family Tax Benefit in the House of Representatives, just as we did in the Senate last week.

Because of Malcolm Turnbull’s cuts to family payments a family with a household income of $60,000 with two primary school age children will be around $440 worse off.

These cuts will particularly hurt around 600,000 Australian families who receive the maximum rate of Family Tax Benefit Part A, which means their household income is less than $52,000 a year.

Malcolm Turnbull and Christian Porter are trying to pretend these cuts are about helping families with the cost of child care. The truth is this cut will hurt 1.5 million families, including some of the most vulnerable families in Australia.

These cuts to family payments will start on 1 July this year - the same day the Turnbull Government also intends to abolish the deficit levy to high income earners.

Abolishing the deficit levy will mean a tax cut for a millionaire of $16,400 a year or $315 a week.

If the Turnbull Government had kept the deficit levy they could have found $4.4 billion in savings from a third as many families.

Last week the Liberals, Nationals, One Nation, Nick Xenophon Team, Senator Leyonjhelm and Senator Hinch all voted for these cuts to families in the Senate.

Families now know who is on their side when it comes to helping them with the cost of living.

Turnbull freezing Family Tax Benefit payment rates:

  • A family on $60,000 with two primary school age children will be around $440 worse off in 2018-19.


  • A single parent family on $50,000 with two high school children will be around $540 worse off.