Childcare changes: Nick Xenophon Team blocks Federal Government's omnibus bill

Updated

The Nick Xenophon Team has announced it will not support the Federal Government's package of changes to child care and welfare benefits.

Last week the Coalition introduced a so-called omnibus bill to try to force nearly $4 billion in savings through the Parliament.

The bill included increases to childcare subsidies, and cuts to family tax benefits and paid parental leave.

Yesterday, Treasurer Scott Morrison put pressure on the crossbench to support the bill, announcing the Government would redirect $3 billion to the National Disability Insurance Scheme (NDIS) if the legislation passed.

"As a negotiating tactic, this is as subtle as a sledgehammer," Senator Xenophon said.

"Pitting battling Australians against Australians needing disability support services is dumb policy and even dumber politics."

The South Australian said while his team of three senators and one Lower House MP were supportive of the increases in the childcare subsidies, it should not come at the expense of cutting family tax benefits and paid parental leave.

Without the support of the three Nick Xenophon Team senators from South Australia, the bill now needs the support of the Greens to pass the Upper House — something that appears unlikely.

The Greens do not yet have an official position on the proposal, but have opposed many of the measures in the past.

Labor's Caucus will officially consider the bill today, after launching repeated attacks on its merits.

Tasmanian senator Jacqui Lambie hit out at the bill on last night's Q&A program,

"I can tell you what they can go and do with their omnibus, they can stick it where it fits," she said.

"This is very cheeky about rolling all [the measures], because they're never going to get it through."

Disability groups concerned

Disabled People's Organisations Australia chief executive Therese Sands said she did not support funding the NDIS through cuts to other social services.

"We are shocked and troubled about this announcement from Treasurer Scott Morrison that once again links cuts to social security with funding for the NDIS," Ms Sands said.

"We have stated clearly, including in our pre-budget submission, that we reject any ties to funding the NDIS by cutting social security.

"We strongly reject measures that would seek to fill any perceived or potential shortfall in NDIS funding through a shift in revenue from other human services."

She called for politicians to stop treating the NDIS like a "political football".

"Trading off essential and vital disability support with cuts is a false economy that will hurt many people with disability and is simply not on — completely unfair — and goes no way to ensure the long term sustainability of the NDIS, which the Government says is the intention," Ms Sands said.

Government 'needs to rethink their tactics'

The country's largest childcare provider, Goodstart Early Learning, has urged the Government to change its tactics to get the long-awaited changes to the sector through Parliament.

Advocacy manager John Cherry said the plan to boost childcare subsidies should be considered by the Senate as a standalone bill, instead of being linked to cuts to other welfare payments.

"The early childhood sector has always thought the childcare reforms should stand [on] its own merits, it will pay for itself because working mums pay more in tax than they receive in childcare assistance so certainly if we end up with a standalone vote on a standalone bill that will be good from our perspective," Mr Cherry said.

"The Government has been trying a particular tactical approach with the Senate and now they'll need to rethink their tactics.

"We're certainly hopeful that the legislation can be considered in that last sitting fortnight in March because we really do need a good period of at least 12 months to ensure we can implement this reform come July 2018."

Topics: welfare, community-and-society, government-and-politics, political-parties, law-crime-and-justice, laws, australia

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