PM Confirms He Sat On Measures That Could Ease The Squeeze Wayne Swan - Shadow Minister for Family and Community Services

Media Statement - 8 March 2004

The Prime Minister confirmed in question time today he personally intervened to defer Cabinet consideration of a suite of measures to reduce the impact of family benefit debts.

Rather than introducing measures that could help 600,000 families a year that are hit with debts, John Howard sat on them to offer as a possible election bribe.

The Prime Minister's decision to sit on the measures comes despite the fact his flawed family benefit system:

• Has resulted in a 1000%+ increase in families incurring end of year family benefit debts compared to the previous family benefit system;
• Retrospectively claws back fortnightly benefits that families receive, before their income increases;
• Advice from the Commonwealth Ombudsman that the current system will continue to result in a large number of unavoidable debts for families; and,
• Evidence 56% of families are paid the wrong fortnightly benefit – either too little or too much.

John Howard's defence that the changes were put on the backburner due to the sandwich and milkshake tax cuts in last year's budget simply don't stand up to scrutiny.

The measures, which included an annual cash tax credit, were developed by an interdepartmental ‘workshop' after the 2003 Budget.

In other words, detailed work on the measures for presentation to Cabinet occurred after it was known the 2003 Budget would include the sandwich and milkshake tax cuts.

The Government has had more than three years to grapple with the problems with its flawed family benefit system – Australian families will not cop another cheapjack pre-election bribe.