Aussie parents will be getting a surprise payment of $410 per child as Schoolkids Bonus despite the government's move to scrap it.
Tony Abbott said he would axe the Schoolkids Bonus started by Julia Gillard but the Australian government revealed Thursday that the minister's plans will not happen unless Minerals Resource Rent Tax (MRRT) is repealed.
Over a million households getting family tax benefit A will be receiving the biannual Schoolkids Bonus of $410 for every highschool child. For children in primary school, the bonus will be $205, sources noted.
Abbott said scrapping the bonus was difficult but maintained that MRRT is not making enough. The MRRT raised lesser than predicted. The Treasurer said getting rid of these payments will save the government around $13 billion in the coming years. Labor indicated that it will be joining in with the Greens to stop the repeal.
As the law stands, so will the Schoolkid Bonus and other bonuses for 3.6 million citizens with low income. The Treasurer said Labor should respect the decision of the coalition to dismantle the law and expenses associated with it.
"Given there are no proceeds, effectively, from the mining tax, the Labor Party can't stand in the way of us doing what we have to do to try and fix the budget," he added.
"For crying out loud, it's now time to listen to the Australian people and let us get rid of the damn thing," he noted.
The Greens said they will vote against the laws and propose that the existing law be expanded to cover other resources. "The Greens will not support moves to put big business and mining profits ahead of people and communities," Senator Milne told reporters.
Chris Bowen said repealing the law is "concerning," Bowen added, "However, we have a fundamental view in the Labor Party that the minerals of Australia belong to all Australians (and) ... that things like abolishing small business tax breaks and abolishing the Schoolkids Bonus are fundamentally wrong."
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