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Modelling shows budget would hit low income families hardest -

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MICHAEL BRISSENDEN: The Federal Opposition is using new figures to attack the budget as unfair, especially on low income families.

Figures commissioned by Labor from NATSEM, the National Centre for Social and Economic Modelling, show the lowest income families would lose most if the budget is passed in full.

Labor is using the modelling to reinforce its case that the Senate should block key parts of the budget to protect those families.

Political correspondent Louise Yaxley reports.

LOUISE YAXLEY: NATSEM's modelling shows a single income family on $65,000 a year with two children would lose nearly $21,000 over four years.

A sole parent with two children on $55,000 would also be more than $20,000 worse off - or up to $6000 a year.

JENNY MACKLIN: This budget is grossly unfair and will hit hundreds of thousands of Australian families.

LOUISE YAXLEY: The Opposition's Families spokeswoman Jenny Macklin says it makes Labor more determined.

JENNY MACKLIN: The message from these figures is that the only way to protect these families is to reject these cuts in the Senate.

LOUISE YAXLEY: The modelling shows the lowest income families would lose around 7 per cent of their disposable income, whereas the richest families would have a tiny gain.

It includes the Government's plan to stop family tax benefit part b when the youngest child turns six - which the Senate has refused to pass from last year's budget.

The Parliamentary Secretary to the Prime Minister, Christian Porter, has told Sky those measures will fund a proposed increase to childcare.

CHRISTIAN PORTER: And we have to negotiate around these savings to make the package happen. I think that might just focus the mind of crossbenchers because if they go back to their constituencies who want the benefits of the childcare package and who I think ultimately will be willing to live with savings in other areas, that ultimately will put pressure on the crossbenchers that maybe hasn't been there before.

LOUISE YAXLEY: Ms Macklin says it is not fair.

JENNY MACKLIN: The Government should not be saying to families that face a cut to their income of more than $6000 a year that they have to take that cut for other families to get improvements to childcare.

LOUISE YAXLEY: Parliament returns today and the Prime Minister's focus is on the budget, and in particular the small business changes.

TONY ABBOTT: The priority this week is getting the budget bills through, unleashing the latent creativity of the small businesses of Australia.

LOUISE YAXLEY: But national security is also high on the agenda.

This morning Mr Abbott will announce that former ambassador to Indonesia Greg Moriarty is to be the first counter terrorism coordinator. Mr Moriarty spent four years in Jakarta as ambassador and previously three years as ambassador to Iran.

Tony Abbott's also set to announce more changes to citizenship laws this week.

TONY ABBOTT: What we have long had in the Citizenship Act is a provision that people lose their citizenship if they have taken up arms against the Commonwealth of Australia. And people who are serving with terrorist groups overseas or who are engaged in terrorist activities here in Australia are effectively taking up arms against us.

LOUISE YAXLEY: He's foreshadowing they could have their citizenship rights suspended, and that could include restricting the ability to leave or return to Australia.

MICHAEL BRISSENDEN: Louise Yaxley with that report.