Australia’s dwindling birth rate has prompted calls for the return of the Baby Bonus, which gave parents of newborns $5000 in a bid to boost the population.
Many of us would remember former treasurer Peter Costello encouraging Australians to, “Have one for mum, one for dad, and one for the country,” in a bid to increase the nation’s falling birthrate in 2004.
Alongside calls for Australian couples to help break the baby drought in the 2000s, came the Baby Bonus, which started out at $3000 and peaked at $5437.
At the time the policy was announced, Australia’s fertility rate was 1.7 (live births per woman). For the nation’s population to remain steady without immigration, the fertility rate needs to be 2.1.
Now Australia is a facing record-low birthrate, dropping from 2.0 around 15 years ago, to less than 1.6 today. Which has reignited calls for a similar Baby Bonus scheme.
Social analyst Mark McCrindle, told The Daily Telegraph that the birth rate figure needs to be much higher, and a sweetener like the Baby Bonus could be the incentive. “Even if it went up to $10,000, it’s only a token anyway compared to the costs of raising those kids,” he said.
While politicians agree the birth rate is a concern, the jury is out on whether a revamped Baby Bonus scheme is the answer.
“If we just relied on population growth we would not be replacing Australia, it’d be shrinking as a country. Countries like Japan are already doing this and they’re in a lot of trouble because of that,” Queensland Senator Matt Canavan told Nine News.
“The problem with baby bonuses is just a cash flash. We also need to, of course, encourage economic growth, encourage people to be in the labour force. So I think putting more family benefits with the tax system would be a good idea.”
At this stage the federal government hasn’t indicated it will reintroduce the Baby Bonus.
What do you think? Should the Baby Bonus make a comeback? Let us know in the comments below.
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