Morrison warns of tax increase if omnibus bill is blocked
Child care costs will skyrocket if the government's omnibus bill is blocked by the Senate.
The government expected to generate $5.6 billion in savings through its welfare omnibus bill introduced by Treasurer Scott Morrison last week.
But the bill appears certain to fail because it groups billions of saving measures into one unpopular package.
The government expected to generate $5.6 billion in savings through its welfare omnibus bill introduced by Treasurer Scott Morrison (pictured) last week
The government has linked previously rejected welfare cuts to its long-awaited child care reform package, igniting a political brawl.
The package includes cuts to paid parental leave, family tax benefits and unemployment payments - with some of the savings used to pay for extra funding for childcare and the National Disability Insurance Scheme (NDIS).
The bill would earmark $1.6 billion for childcare fee subsidies and the remaining $4 billion for the NDIS - but the funding would come at a hefty cost for other social services.
'If you don't fund it (the NDIS) by getting welfare under control, you've got two other options, increase taxes or increase debt,' Mr Morrison told News Corp.
'If you don't fund it (the NDIS) by getting welfare under control, you've got two other options, increase taxes or increase debt,' Mr Morrison told News Corp
The Turnbull Government's bill groups unpopular welfare cuts in with long-awaited child care reform
Labor, the Greens, the Nick Xenophon Team and Jacqui Lambie have all signalled they will reject the bill, leaving only One Nation in favour.
'As a negotiating tactic, this is as subtle as a sledgehammer,' Senator Xenophon told the ABC.
'Pitting battling Australians against Australians needing disability support services is dumb policy and even dumber politics.'
Labor, the Greens, the Nick Xenophon (pictured) Team and Jacqui Lambie have all signalled they will reject the bill, leaving only One Nation in favour
'As a negotiating tactic, this is as subtle as a sledgehammer,' Senator Xenophon (pictured) said
Paralympian Kurt Fearnley has hit out at the Government's proposed bill claiming it is using the National Disability Insurance Scheme (NDIS) as a 'policy plaything' by attempting to fund it by cutting funds to other crucial social services.
'It mustn't be used as a policy plaything,' he said on Twitter on Monday.
'The NDIS is a life and economic enabler and mustn't be threatened as a byline when you run out of ideas to force cuts elsewhere.'
'It mustn't be used as a policy plaything,' Mr Fearnley said about the NDIS on Monday
'The NDIS is a life and economic enabler and mustn't be threatened as a byline when you run out of ideas to force cuts elsewhere,' Mr Fearnley said
Mr Fearnley refers to the Government's threat to cut both NDIS funding child care subsidies if the bill is not passed.
Mr Morrison threatened a 'tax on your children' if the bill did not pass.
'You've either got to have higher debt - which is a tax on your children - or you have to do it with other revenue measures,' he said.
'If the parliament is going to insist that the government spend more and more money, particularly on welfare, then someone has to pay for that.'
Opposition Leader Bill Shorten (pictured) described the government's support for the NDIS as lukewarm, and he nominated a simple solution to its budget problem
'What the government says is increase the taxes on ordinary people or they take away payments from people who are less well off,' Mr Shorten said
Opposition Leader Bill Shorten described the government's support for the NDIS as lukewarm, and he nominated a simple solution to its budget problem.
'Don't go ahead with $50 billion of corporate tax cuts,' he told ABC radio.
'What the government says is increase the taxes on ordinary people or they take away payments from people who are less well off.'
Mr Shorten queried why a planned cut in the company tax rate over 10 years was 'sacred ... off limits' but the rest of Australia had to pay more or lose more.
Independent senator Nick Xenophon (pictured) said it was a difficult decision but he would not support the bill
Independent senator Nick Xenophon said it was a difficult decision but he would not support the bill.
He said the bill had a 'harsh effect on families'.
'The trade-off, in respect of the family tax benefits and the and the childcare package, as good as it is, comes at too high a cost,' he told ABC radio on Tuesday.