Media Release by The Hon Mal Brough MP

Payments boost for 2.2 million families

More than 2.2 million Australian families are set to receive a further boost in family payments and help with the cost of child care.

Families and Community Services Minister Mal Brough said the Howard Government is increasing its investment in families through a rise in Family Tax Benefit and Child Care Benefit from July 1.

The maximum fortnightly rate of FTB (A) for families with a child aged under 13 years will increase by $3.78 to $140.84.

"A family with two children aged under 13 and with a taxable income of $40,000 will gain over $1,500 in FTB in the 2006/07 financial year," Mr Brough said.

The rises are the result of annual adjustment increases and the 2006-07 Budget changes.

"The maximum fortnightly rate of FTB (A) for families with a child aged 13 to 15 years will increase by $6.02 to $179.76. With the inclusion of the supplement, this amounts to more than $5,300 each year per child," Mr Brough said. "The amount of income a family can earn, and still receive the maximum rate, will also increase, up by $6,639 to $40,000 each year."

Mr Brough said more than 574,000 families eligible for the Child Care Benefit will be assisted with a 2.8 per cent increase, further assisting parents with the cost of child care.

"The maximum assistance for families using full-time child care will increase from $144.00 a week to $148.00 for one child, from $300.99 to $309.35 for two children and from $469.78 to $482.84 for three children," Mr Brough said.

"These families will now be able to earn up to $34,310 a year and receive the maximum rate of CCB. The Howard Government is providing unprecedented support to Australian families to assist with the cost of raising children."

Mr Brough said spending on child care will increase to about $10 billion over four years to 2009-10 – more than double that spent under Labor.

More than 800,000 children are accessing government subsidised child care places, with parents to benefit from the payment of the Child Care Tax Rebate from July 1, which provides up to $4,000 per child per year in extra payments."