It looks like Australian Federal Government is struggling with its budget deficit thus putting pressure on poor families by chopping lot of family benefits which includes baby bonus and tax offset for dependent spouse.

Treasurer Wayne Swan outlined widespread Budget pruning as he released the Treasury’s regular assessment of the economy, the Mid-year Economic and Fiscal Outlook (MYEFO).

The Government forecasts a $1.5 billion surplus in 2012-13 – to be contained in next May’s Budget – despite a giant deficit of $37 billion for 2011-12, up from a projected $22.6 billion.

Treasurer Wayne Swan confirmed that Government tax revenue had fallen by $20 billion over the four years beginning this financial year, ramping up the deficit.

The cuts which have been measured by Treasurer Mr. Wayne Swan are outlined below:

• A one-off increase in the efficiency dividend demanded of departments, set to raise $1.5 billion, and possibly causing public service job losses and service reductions;
• Attacking rotting of the Living Away from Home Allowance tax concessions for foreign executives working here, expected to save $710 million;
• Making it harder to get the Dependent Spouse Offset available to spouses without children by limiting it to those born after 1952, which is expected to save $370 million;
• Reducing the Baby Bonus from 1 September 2012 to $5000, down from $5400, and a three-year pause in indexation of the payment. The Paid Parental Leave Scheme will not be touched;
• Increasing charges for some visas for non-residents coming to Australia to ensure Australian taxpayers are no longer subsidising visa applications, saving $613 million.