Updated March 22, 2017 00:14:36

Photo: Key Senate crossbenchers have told the ABC they want the omnibus bill split "as quickly as possible". (AAP: Mick Tsikas)

The Federal Government will today separate its childcare package and some cuts to welfare payments from its $4 billion omnibus savings bill, the ABC understands.

The move is designed to help the Government win enough crossbench support in the Senate to pass the childcare package by the end of next week because Labor, the Greens and crossbenchers including Pauline Hanson's One Nation and the Nick Xenophon Team (NXT), do not support the bill in its current form.

It is understood the $1.6 billion childcare package, along with enough savings measures to cover that cost, will now be dealt with separately — but the specific welfare measures to be separated from the omnibus bill are yet to be revealed.

This is the latest attempt by the Coalition to get its childcare changes passed by the end of next week, before Parliament enters the long break leading up to the May budget.

As part of the package, subsidies paid to families will be streamlined into one payment and the lowest-income earners will receive the highest benefit.

The annual cap on subsides will be lifted for families earning less than $185,000 a year and increased from $7,500 per child to $10,000 per child for those earning more.

Key Senate crossbenchers have told the ABC they want the omnibus bill split "as quickly as possible", with just six parliamentary sitting days left before the budget.

One Nation senator Malcolm Roberts told the ABC his party supported some, but not all, savings and was pushing for the bill to be urgently "split up".

"It needs to be done as quickly as possible because I think they need to start getting these savings pretty quickly, and I think the Government is starting to understand that they can't get it through as it is and it needs to be broken up," Senator Roberts said.

"We don't like so many different issues combined under one umbrella, we think that's a failed strategy from the Government.

"The Government, if it wants to get something through, must break it up and let us treat each issue on its merits."

One Nation leader Pauline Hanson has previously argued parts of Australia's welfare system were too generous, but in a statement said the omnibus bill "unfairly targets Australia's most vulnerable".

Nick Xenophon agreed, arguing a number of measures in the current bill would "have a significant impact on tens of thousands of families in this country".

"I think it is not unreasonable to look at this, to split these bills, but ultimately that's up to the Government," he said.

Birmingham pressures Opposition to pass package

Senator Roberts said it was important the Government dealt with the bill "before the budget".

"I'm sure that's what they'd like to do. I think it needs to be resolved quickly but it must be resolved properly," he said.

He insisted his party's position was not an attempt to distance itself from the Federal Government, following the West Australian One Nation preference deal with the Liberal Party.

Malcolm Turnbull is expected to make child care a focus in his speech at the National Press Club today. This is how the Government currently helps families with their child care.

"We would not even dream of tying it to something like WA and, by the way, we were very successful in WA, it looks like we've got three seats in the Upper House," he said.

Education Minister Simon Birmingham is keeping the pressure on the Opposition and the Senate crossbench to pass the childcare package.

He said as well as boosting the subsidy paid to families, the changes included a new online payment system that would improve the way childcare providers operate.

Senator Birmingham said the new IT system would reduce paperwork for childcare workers, which would mean they could spend more time with children and less on administration.

"We will create a much better system for childcare operators, remove a whole lot of red tape and paperwork," he said.

"By doing so mean there's an extra 100 hours that pretty much every childcare service across the country will be able to spend with children, helping them, caring for them, providing quality education."

Speaking on RN yesterday, Social Services Minister Christian Porter would not be drawn on whether the Coalition would be prepared to split the bill to at least get some of the savings measures over the line.

"We are dealing with a lot of crossbenchers representing a lot of different parties and interests and a lot of different suggestions," Mr Porter said.

"The negotiations are being conducted well and in good faith, they're very productive. How those negotiations will end will be a matter that'll be yet to be seen."

Topics: government-and-politics, federal-government, family-and-children, child-care, australia

First posted March 22, 2017 00:08:58