Australian PM says 'real savings' in budget
Updated
The Australian government has set its sights on helping low and middle income families in the budget, but it is not yet clear if payments to richer parents will be scaled back.
The prime minister, Kevin Rudd, says there will be real savings in the budget, so the government can honour its promises to ease financial pressures on families.
"And that's where I'm sure we're going to come in for some criticism from a range of people for the sort of savings we make," he said.
Our reporter, Naomi Woodley, says $A77 million ($US72 million) will be saved by closing a tax loophole for high income earners.
The government also hasn't ruled out means-testing some allowances for those in the top tax bracket.
The opposition treasurer Malcolm Turnbull says the Baby Bonus should be paid regardless of income.
"I think it is a signal of the commitment that we, as a nation, have to children," he said.
He says means-testing can often be more expensive than the savings it will generate.
The Baby Bonus is a lump sum payment from the Australian government to help families with the costs associated with having a new baby.
