Changes to the Family Tax Benefit from the 2009 federal budget will mean a loss of income for families who can least afford it, according to this factsheet, almost inevitably leading to an increase in child poverty.

The effects of this reduction in income will be clearly felt by 2012, when the government estimates it will save $500 million from the changes. The changes were announced as a budget ‘savings’ measure without prior public consultation, even though the Henry review of Australia's tax system is examining these payments as part of its review of the tax and social security systems. The Henry review is due to report at the end of 2009.