Still trying to slug low-income families

The child care changes at the centre of the 2015 federal budget have come under harsh criticism for targeting many low-income families.

The government has committed to spend an extra $3.5 billion over four years on child care and families assistance, but in a move described by Greens senator Sarah Hanson Young as “blackmail”, ministers have confirmed that the spending is linked to the Senate agreeing to severe cuts to the family tax benefit.

The family tax benefit cuts were roundly condemned when first raised in the 2014 budget. They would stop payments to single-income families when children turn six. Under the new package, stay-at-home parents will also lose all child care subsidies if their household income is over $65,000. Parents will be required to do eight hours a fortnight of training, study or work to qualify for child care support.

“As a total package, the reforms to family and child care payments are unbalanced”, said Australian Council of Social Services CEO Cassandra Goldie. “Very low income families are being asked to foot the bill for generous subsidies to those who are already doing well financially.

“In addition, the package does not strike the right balance between workforce participation and child development, with some vulnerable children worse off. It is difficult to reconcile the generous assistance being extended to families in the top 25 percent of incomes with the severe cuts to payments for families struggling to make ends meet.”

The Liberals’ key concern with the child care and families package is workforce participation. The government’s page-long media release on the package makes no fewer than 10 references to workforce participation or helping parents re-enter the job market.

Just like the hated 2014 federal budget, it seems the key way the government plans to “help” low-income people back into the workforce is by threatening yet more cuts and deeper poverty.