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Budget 2006: Budget gives no relief on petrol pain.

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MEDIA RELEASE SF/56 Tuesday May 9, 2006


Family First welcomes the help in the Budget for ordinary families who are struggling to adjust to high petrol prices and an increase in interest rates. But Family First is disappointed the Government still stubbornly refuses to cut petrol taxes.

Family First also regrets that the Government has rejected the option of giving all parents with pre-school aged children greater choice and more equitable access to child care by replacing the child care rebate with an enhanced Family Tax Benefit Part A.

The Budget confirms the Government is drunk on petrol tax. Next financial year, it expects to reap $14 billion in excise from motorists, yet it continues to ignore the petrol pain on families and small businesses.

While the income tax cuts for families are welcome, they are not an adequate substitute for cutting petrol tax.

The average Australian family with two children would have been better off with a 10 cent cut in petrol tax and the probability of an income tax cut than with what the Treasurer has delivered.

Family First welcomes Budget measures to help families, including: • Extending the Large Family Supplement to families with three children. We need to do a lot more to encourage families to have more children. • More childcare places. But the problem is, many parents cannot afford high

childcare fees. And many parents would prefer their children were cared for by friends or relatives at home rather than formal childcare.

Family First wants the childcare rebate - which only goes to parents whose children attend formal childcare - to be replaced by an increased Family Tax Benefit payment that goes to ALL parents with children under five. That gives parents choice about who is best to care for their children.

For media enquiries phone Chief of Staff Felicity Dargan on 0409 550 446