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Government to introduce legislation to scale back family tax benefit payments.

By: Eliza Borello

The Federal Government will today introduce revised welfare legislation into Parliament, scaling back some of the tougher Family Tax Benefit cuts proposed in the 2014 budget.

In the 2014 budget, the Abbott government outlined a plan to stop paying families Family Tax Benefit Part B when their youngest child turned six.

The Coalition has acknowledged the plan, which was blocked by the Senate, needed reworking if it was going to pass.

The legislation to be introduced today will end Family Tax Benefit B payments when the youngest child in a family turns 13.

Treasurer Scott Morrison is hopeful the latest incarnation will be more acceptable to the Senate.

“The measures that we’ll put forward today achieve roughly about the same level of savings overall which ensures that we’re able to afford to pay for the childcare package,” he told AM.

“Importantly it does it in, I think, a more fair, a more targeted way.”

It is understood the new legislation will also include safety net provisions for families with older children.

The revised plan will cost the Government billions of dollars in projected savings compared to the 2014 plan, but the Coalition is hopeful this incarnation will be more acceptable to the Senate.

The Government hopes to have the new plan passed by the end of the year.

It has been in extensive talks with Labor and the crossbench, but is yet to get guaranteed support.

Labor's families spokesman Jenny Macklin told the ABC's AM program she would not say whether Labor would support the legislation, but was pleased the plan had changed.

"It's certainly a win for families, it's a big win for families," she said.

"The Government has backed down on one of the biggest cuts."

Greens families spokeswoman Rachel Siewert said the Government should not be making cuts that hurt single parents.

"The adjusted proposal for cuts to the Family Tax Benefit Part B is another example of the Government pursuing watered down measures that still disproportionately target our most vulnerable," she said.

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