The Courier Mail

3 December, 2013

READERS have reacted angrily to Abbott Government moves to claw back almost $3 billion in family and welfare payments under laws to tighten eligibility.

Pensioners, students and families have been included in the savings measures that will start from January.

The story has attracted more than 300 comments on couriermail.com.au and hundreds more on social media, many saying the moves are misdirected.

The Social Services and Other Legislation Amendment Bill is expected to be passed tomorrow despite facing some headwinds from crossbench senators.

While many of the sweeping reforms have already been flagged by the Government, some of the changes may shock pensioners living overseas, parents of teenage children and working mums and dads who rely on childcare.

One of the biggest savings – more than $1.2 billion, will come from not raising indexation on the child care rebate and end-of-year family tax benefit supplements.

The annual childcare rebate limit of $7500 will remain until July 1, 2017, and family tax benefit supplements will remain at current levels for three years.

More than $50 million will be saved over four years by changing how long someone has to live in Australia before receiving the pension.

Currently a person who has been out of the country for 26 weeks continues to get their pension if they lived in Australia for 25 years.

That will change to 35 years next year.

And from July 1, 2014, the length of time that families can be temporarily overseas and continue to receive family and parental payments will reduce from three years to 56 weeks.

Parents with teens have also been targeted, which will save $76 million over four years.

From January 2014, family tax benefit part A will be paid to families only up to the end of the calendar year in which their teen completes school.

Eligibility will be removed for 16 and 17-year-olds who have finished their Year 12 qualification. The benefit will also be slashed for families whose children have completed school and have a job.

Changes to student start-up loans, which help with the cost of study, including the purchase of text books, computers and internet access, will reap $1.2 billion over five years by a more targeted approach to chasing debts.

More than $80 million will be saved by cutting late entrants to the pension bonus scheme.

The scheme provided a lump-sum payment to those qualified for age pension who reached qualifying age but who choose to defer their pension and remain in the workforce. The scheme was closed from 2009, although people remained able to register for the scheme if they were qualified for it, but had not registered, at the time of its closure.

Readers have slammed the moves, with “Diana” writing: “Tony Abbott could start saving money by jumping on the rich who hide in tax shelter schemes – and just for novelty value, he could cut off all the handsome benefits that ex-prime ministers and politicians are given when they retire.”

“julia” adds: “The elderly should NOT be the target, they have worked all their lives many in 2 or 3 jobs to feed their families with out the help of the government.”

And “David” writes: “I agree we have too much easy welfare access in this country but wholesale cuts to those who need it aren’t the answer.”

However some came to the defence of the Prime Minister, “Rick” writing: “If you are old, sick or incapacitated a First World country like Australia has a duty to support you, and the belt-tightening areas that Abbott is targeting are all very fair.”