Coalition plan to repeal mining tax may prove costly for families

The federal Coalition’s plan to repeal Labor’s mining tax is a step closer with the House of Representatives having passed legislation to overturn the Minerals Resource Rent Tax.

The bill is now before the Senate. If passed, it will remove a suite of cash handouts financed by the tax.

The Schoolkids Bonus is one such measure that would be cut, with families missing out on $728 million earmarked to be paid before the beginning of the 2014 school year.

If the legislation passes the Senate, the cut to the Schoolkids Bonus would affect more than 11,810 families in Whittlesea.

Scullin MP Andrew Giles said cutting the bonus would impact on low and middle-income families struggling to meet the costs of their children’s education.

He said he would not support any attempt by the federal government to cut the
bonus.

Lentara UnitingCare provides community services to people in Melbourne’s north and west. The group’s community services general manager, Greg Wilkinson, said the organisation expected an increase in the number of families seeking financial help if the bonus was lost.

“Education is quite an expense for a lot of families,” he said. Lentara offers a large relief program, which includes an education program that covers back-to-school expenses such as uniforms and books.

The scheme supports about 60 families. “Without additional funds coming in, we could see up to about 20 [additional] families seeking help,” Mr Wilkinson said.