Post by Banker on May 4, 2012 7:30:51 GMT 7
A multi-billion dollar scheme to support the disabled is set to dominate the federal government's welfare portfolios when the budget is handed down next week.
But there's unlikely to be more money for the unemployed and families with young children could face a means test on the child care rebate, as well as reductions in the baby bonus.
In the lead-up to the May 8 budget, Childcare Minister Kate Ellis has so far declined to rule out a means test on the 50 per cent childcare rebate, which is capped at $7500.
While the idea is not new - the government hosed down the proposal before last year's budget - it could create a voter backlash for Labor, which is determined to take tough measures to return the budget to surplus in 2012/13.
Some 782,000 families receive the rebate towards the cost of out-of-pocket expenses for approved child care.
Families on more than $150,000 receive about $244 million each year in rebates and $14.7 million of childcare benefits.
Means testing of certain benefits has been a feature under the minority government.
In 2009, Labor introduced means testing for the Baby Bonus and Family Tax Benefit Part B payments for families earning more than $150,000.
This year, it introduced means testing of the 30 per cent private health insurance rebate from July 1, to save about $2.4 billion over three years.
As well, the overall baby bonus is due to be cut by $400 to $5000 from September this year.
While childcare means testing is a possibility, the government is preparing to give parents on welfare almost cost-free child care if they are training or looking for work under the Jobs, Education, Training program.
Meanwhile, Australians on welfare struggling to keep their heads above the poverty line are likely to be left empty handed again.
Labor backbenchers, welfare organisations and even the Business Council of Australia (BCA) have been urging the government to lift the Newstart Allowance by $50 a week and fix its indexation.
They argue the 'poverty-level' payments are inadequate to help people train and prepare for jobs.
'They need to be in good health, have decent clothes, be able to get transport to go to interviews and to have their confidence intact,' BCA chief executive Jennifer Westacott said in April.
About 600,000 people are on the Newstart unemployment allowance of $244.85 a week.
It equates to $35 a day for a single adult - less than the $53.50 a day for the aged pension.
Lifting the rate by $50 a week would cost at least $1 billion more a year.
But Labor frontbenchers, including Ms Ellis, have ruled out increasing the allowance in the budget, despite sympathising with the plight of recipients.
However, the budget is likely to allocate some big federal bucks to setting up a multi-billion dollar National Disability Insurance Scheme (NDIS) to cover the costs of ongoing care, accommodation and therapy in partnership with the states.
The scheme's expected to cost $8 billion a year on top of existing disability funding worth about $7 billion already going to the states.
Details about how much the states will be expected to chip in to the NDIS are also expected to be revealed in the budget.
Trials for the Medicare-styled scheme are due to launch in mid-2013, a year earlier than expected.
www.skynews.com.au/businessnews/article.aspx?id=746443&vId=
But there's unlikely to be more money for the unemployed and families with young children could face a means test on the child care rebate, as well as reductions in the baby bonus.
In the lead-up to the May 8 budget, Childcare Minister Kate Ellis has so far declined to rule out a means test on the 50 per cent childcare rebate, which is capped at $7500.
While the idea is not new - the government hosed down the proposal before last year's budget - it could create a voter backlash for Labor, which is determined to take tough measures to return the budget to surplus in 2012/13.
Some 782,000 families receive the rebate towards the cost of out-of-pocket expenses for approved child care.
Families on more than $150,000 receive about $244 million each year in rebates and $14.7 million of childcare benefits.
Means testing of certain benefits has been a feature under the minority government.
In 2009, Labor introduced means testing for the Baby Bonus and Family Tax Benefit Part B payments for families earning more than $150,000.
This year, it introduced means testing of the 30 per cent private health insurance rebate from July 1, to save about $2.4 billion over three years.
As well, the overall baby bonus is due to be cut by $400 to $5000 from September this year.
While childcare means testing is a possibility, the government is preparing to give parents on welfare almost cost-free child care if they are training or looking for work under the Jobs, Education, Training program.
Meanwhile, Australians on welfare struggling to keep their heads above the poverty line are likely to be left empty handed again.
Labor backbenchers, welfare organisations and even the Business Council of Australia (BCA) have been urging the government to lift the Newstart Allowance by $50 a week and fix its indexation.
They argue the 'poverty-level' payments are inadequate to help people train and prepare for jobs.
'They need to be in good health, have decent clothes, be able to get transport to go to interviews and to have their confidence intact,' BCA chief executive Jennifer Westacott said in April.
About 600,000 people are on the Newstart unemployment allowance of $244.85 a week.
It equates to $35 a day for a single adult - less than the $53.50 a day for the aged pension.
Lifting the rate by $50 a week would cost at least $1 billion more a year.
But Labor frontbenchers, including Ms Ellis, have ruled out increasing the allowance in the budget, despite sympathising with the plight of recipients.
However, the budget is likely to allocate some big federal bucks to setting up a multi-billion dollar National Disability Insurance Scheme (NDIS) to cover the costs of ongoing care, accommodation and therapy in partnership with the states.
The scheme's expected to cost $8 billion a year on top of existing disability funding worth about $7 billion already going to the states.
Details about how much the states will be expected to chip in to the NDIS are also expected to be revealed in the budget.
Trials for the Medicare-styled scheme are due to launch in mid-2013, a year earlier than expected.
www.skynews.com.au/businessnews/article.aspx?id=746443&vId=