Households facing welfare cuts due to come in next week will have a reprieve after the government ran out of time to pass the measures in parliament.
Welfare cuts due to come into effect next week are in limbo with the federal government conceding it has run out of time to pass the measures through parliament.
Seniors, families, youth and the unemployed will continue to receive payments as usual.
“Life will go on as it is today until the measures are passed,” Social Services Minister Kevin Andrews told ABC radio on Monday.
Mr Andrews admitted the delay could result in a budget hole.
“It will have some impact on the budget if we can’t get these measures through in a timely manner,” Mr Andrews said.
Changes to the income test and thresholds for Family Tax Benefit Part A and B, Newstart Allowance and Parenting Payments are on hold.
Plans to scrap the School Kids Bonus and Seniors Supplement are also up in the air.
“We will obviously give people a new indication of when the changes will come in once we have some sense of what the Senate might do,” Mr Andrews said.
The Senate’s make-up changes on July 1 with the balance of power shifting from Labor and the Greens to an extended crossbench including Palmer United Party senators.
Mr Andrews flagged he will release former Mission Australia chief Patrick McLure’s welfare system review interim report in the next fortnight.
The Abbott government is due to reintroduce its carbon tax repeal legislation to parliament on Monday.
Manager of opposition business Tony Burke said it’s a distraction.
“This week is anything but the budget, anything other than the pain they’re hitting lower and middle income people on,” he told ABC Radio.