The Government will reduce the level of cash payments in its $42 billion stimulus package in an attempt to get the legislation through the Senate.
It will reduce the amount given in tax bonus payments from $950 to $900, and will also reduce the payments for single income families to $900.
“We do not reduce these payments lightly because we know that they are essential to support growth and jobs in the near term,” Superannuation Minister Nick Sherry said.
“But we have decided on this small reduction that maintains the overall effectiveness of the Government plan while taking into account the views of others.”
The Government also says it will negotiate with Family First Senator Steve Fielding over job creation funding, but it will not accept an amendment from independent Senator Nick Xenophon requesting funds for the Murray-Darling basin.
Sherry also says the Government will not play politics, and the changes are “the point of decision for this Senate.”
He also said the Government will work with Fielding over his amendments, but that “it requires some work”.
Debate continues in the Senate.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
