Prime Minister Julia Gillard has promised the $2 billion freeze on family payments will be temporary, as she continues to defend her first budget.
The coalition has been highly critical of moves to freeze the maximum rate and income thresholds for some family payments, which it has signalled it will oppose.
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The indexation freeze is expected to cost families on average about $20 in 2011/12. But it could be worth up to $800 in 2012/13 and $600 the following year for 210,000 families.
His “campaign of negativity” would not last until 2013, when the next election is due.
“Ultimately I think Australians are going to see through this and I think the fact he's so desperate for an election shows even he knows they're going to see through it,” Mr Gillard said.
“That's why he's so keen for an election now.
Independent federal MP Tony Windsor said opposition calls for an early election show he was right to help hand Labor power after last year's election.
“Tony Abbott was asked right at the start of this process during the 17 days whether he wanted another election, he didn't and neither did Julia Gillard,” Mr Windsor told Network Ten.
“Quite clearly what Mr Abbott's been suggesting of recent days, he wouldn't have been interested, he's interested in getting back to the polls, so a hung parliament wouldn't have suited him.”
However opposition frontbencher Joe Hockey today repeated the Coalition's calls for an early election.
Former Liberal treasurer Peter Costello weighed into the debate, questioning Ms Gillard's leadership.
"Gillard is (politically) dead," he told Network Ten.
"I think the public has made up its mind, and it's not pretty."
Independent MP Tony Windsor refused to comment on the leadership, but told Network Ten he was confident the Gillard-government would run a full term to 2013.
Mr Windsor and Nationals leader Warren Truss both told the program they had no intention of blocking budget supply, but would consider measures individually.
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