Government scraps plans to increase Family Tax Benefit A in Federal Budget Finance Minister Penny Wong has confirmed the government has scrapped a planned increase to the Family Tax Benefit part A. Picture: Jake Nowakowski Source: The Australian FAMILIES will miss out on a tax boost worth up to $600 a year after the government confirmed it was scrapping the measure in the upcoming budget. And the government is facing revenue black hole this financial year of $17 billion. Finance Minister Penny Wong this morning confirmed the Government would not go ahead with its plans to boost Family Tax Benefit part A from July 1. "We are not in a position to proceed with the boost to family tax benefits as a result of the revenue challenge that the government is facing and the nation is facing," Senator Wong told Sky News. The move will save the federal coffers around $1.8 billion. Labor pledged the boost to FTB-A as part of its "Spreading the benefits of the boom" package. It was due to help around 1.5 million families on low and middle incomes. Families with one child were to get a boost of $300 a year and those with two or more children would get $600. "I want to emphasise this is not money currently being received by families," Senator Wong said. Families will continue to receive the benefit they currently receive in the family tax area but this is about not proceeding with the additional boost the government previously considered. Senator Wong also confirmed this morning the revenue shortfall for this financial year would be "significant." "The impact in the current financial year, between last year's budget and this year's budget looks to be is in the order of $17 billion," Senator Wong said. Last week Prime Minister Julia Gillard confirmed lower than expected revenues would cut $12 billion from the Federal Budget. But that figure was the writedown post the Mid-Year Economic and Fiscal Outlook released in October. The $17 billion slump announced today is for the full 2012/2013 financial year. Tony Abbott today said the axing to Family Tax Benefit part A was just another broken promise by Labor. "This is a government which is constantly getting it wrong when it comes to the budget," Mr Abbott said. Every other day now the government is further estimating the extent of revenue losses and every other day the government is re-writing commitments that were cast in stone just a few weeks or months ago.