FED:Childcare payments cut a govt 'cash cow'

AAP General News (Australia)
08-23-2011
FED:Childcare payments cut a govt 'cash cow'

PARLY 008

CANBERRA, Aug 23 AAP - The federal opposition has accused the government of using planned
changes in family child care benefits as a "cash cow" to fund its other spending policies.

Nationals Senator Fiona Nash told the Senate on Tuesday many Australians would be concerned
at what the government was doing.

After questions from Senator Nash, Labor parliamentary secretary Don Farrell said the
aim of the change was to generate savings.

"The primary purpose is to generate some savings, $81 million to be precise," Senator
Farrell told the chamber on Tuesday.

Senator Nash said: "Isn't it interesting, colleagues, that this government has spent
$80.9 million on an emissions trading scheme that does not exist?"

The government's proposed family assistance amendment bill would cap the annual child
care rebate limit at $7500 for the four years from July 1 2010, with the first rise in
line with inflation occurring from July 1, 2014.

Currently, the child care rebate limit for families is $7941.

Senator Farrell said the impact of the change in the cap on families would be "very modest".

"The vast majority of families using approved child care, some 95 per cent, or 759,000,
will not reach the reduced annual cap in the financial year 2011/12, and therefore would
not be affected by this change," he said.

Debate on the Family Assistance Legislation Amendment (Child Care Budget Measures)
Bill 2010 continues.

AAP el/klm

KEYWORD: CHILD CARE

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