Federal Government slashes baby bonus

THE Coalition and Labor have struck a deal whereby a $1000 a year baby bonus for families with a child under one will be cut in order to save a $5 a week clean energy subsidy for people on benefits. 

The moves are part of the government's effort to get the budget back in surplus - with the Federal deficit expected to come in at $37.1 billion this financial year and the Turnbull led Coalition desperate to push through $6 billion worth savings it's titled the Omnibus Bill. 

However Labor refused to vote in favour of the bill when it entered the Senate unless the government agreed to protect the clean energy payment. 

"I think it's important that, when we look to rectify what are clearly problems with our budget over the forward estimates and beyond, that we do so with an eye to make sure that people that are most vulnerable in our society are not being punished unduly," Labor frontbencher Brendan O'Connor told Sky News. 


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