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Child tax rebate for families.

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Warren Truss MP Minister for Agriculture, Fisheries and Forestry - Federal Member for Wide Bay

Child Tax Rebate for Families 29 October 2001

Under the Federal Coalition Government, Wide Bay families will receive up to $2,500 a year for five years to help with the costs of looking after their first child.

In welcoming the Prime Minister's announcement, Member for Wide Bay Warren Truss said the financial bonus will assist families to better balance their work and family priorities.

The baby bonus will be paid to the partner in a couple who stays at home to look after the first child born after July this year.

"A tax rebate of between $500 and $2500 a year will be paid to a parent who opts to stay at home rather than continue working during the child's early years," Mr Truss said.

"The Federal Coalition Government recognises that strong, stable and loving families are the backbone of our communities and our nation. I am pleased the Government is able to provide these families with additional support for the sacrifices they make during the costly time following the birth of a child."

Mr Truss said almost 1 million mothers who care for the first child born during the next five years will benefit from the $1.2 billion First Child Tax Refund plan.

For parents who become the prime carer after the birth of the first of their babies born after July 1, 2001, the bonus will refund tax they have paid on wages or salaries in the year before the child was born.

Mr Truss said non-working parents will be given $500 in cash each year to compensate for the cost of raising the child.

While the proposal applies to the birth of a first child, there will be a transitional phase and families who have had a child since 1 July 2001, are entitled to the payment even if they already have other children.

The First Child Tax Refund will be provided in addition to the current family tax benefit payments and will not be counted as income for the purposes of any government benefit. The rebate will not be means tested.