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Article Scrapping of Baby bonus saves $1.4 billion over 10 years

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Baby bonus, worth $1000 a year for eligible stay-at-home mums, has been scrapped.

The Coalition and Labor have agreed to cut back a baby bonus payment worth $367 million as part of the deal to pass the $6.3 billion omnibus savings bill.

The Federal Opposition refused to support the axing of carbon tax compensation for those who are wholly reliant on welfare recipients including Newstart recipients, aged pensioners and disability pensioners. The so-called clean energy supplement is worth $4.40 a week for someone on the dole, reports 7 news.

While the payment will be scrapped for new recipients of family tax benefits or the Commonwealth seniors health card.

Labor has also refused to agree to cuts to the child dental scheme and limited the proposed $1 billion cut to the Australian Renewable Energy Agency (ARENA).

Shadow treasurer Chris Bowen, who negotiated the compromise with Finance Minister Mathias Cormann, said Labor supported 20 of the 24 measures in the omnibus bill but delivered $6.3 billion in total savings – more than the Government had first planned.

Opposition leader Bill Shorten said Labor had secured significant amendments to protect low income families and ARENA’s “abolition from the climate sceptics”.

“Today is a win for families on low incomes, today is a win for Australians committed to real action on climate change,” Opposition Leader Bill Shorten said.

The estimated saving from not proceeding with the baby bonus payment is $367 million over four years, or $1.4 billion over 10 years.

“What we’ve managed to do is come up with a package with negotiated amendments which are bigger, better, and fairer, because Labor understands that it’s fundamental to keep face with our commitments to budget repair but to do so in such a way which doesn’t increase in equality or take actions on the priorities of making sure that we properly fund Medicare, that we properly fund our schools, we prioritise local jobs,” Mr Shorten said.

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Comments

  • A compromise would be to reduce the amount + means test it. If a Mum is genuinely deserted after becoming pregnant ot widowed she may need some assistance to purchase necessities such as a cot and legally required equipment used in vehicles. Even if bought secondhand in most cases some items are still expensive. In some areas there is no public transport at all. If you walk a fair distance you need a reasonably good quality stroller. Some of the cheap ones only last a few months before they become unsafe. Also some are not suitable / safe for ages under or 3 or 6 months. You need linen for a cot even if it is reasonable sections of old single or larger ones re-hemmed.

    Reply

  • The whole system needs to be looked at for the future of our country.

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  • I never got this bonus, so don’t miss it. I guess if you were counting on it rather than looking at it as a bonus it would be a problem. But the country has got to rein in its spending and the people shouldn’t expect the government to always pick up the tab. We have to be able to stand on our own two feet as well.

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  • We got the baby bonus only for our youngest. I can imagine that getting the baby bonus is a blessing and helpful and when it falls away it can be hard on families who financially struggle. However we live in a time and age we expect so much help and support from the government that we think it is our right while we have so much. So in contrast with many poorer countries where people don’t get and have anything.

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  • I never received the baby bonus, but I guess it would have been quite handy. Like the school bonus.
    So I don’t think I really support this change.

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  • I along with many others did not receive a baby bonus and have managed without it.

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  • So much money is given to parents of children. It is slowly being reduced and Im sorry but I think this is a good thing. I do wish that they would give more to the Seniors though. People tend to only look at their own situation and look beyond that and i think if people actually looked at how we are treating our elderly and what they are expected to live on then I think they would be stunned. I honestly dont know how our seniors cope.

    Reply

  • Would possibly have made more sense to stop the double dipping from all those working in government jobs who could claim the baby bonus twice!

    • They don’t get it twice, that’s parental leave. Not just government jobs either. They shouldn’t double dip though.

      • This is why the system needs an overhaul.

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  • I never had the baby bonus

    Reply
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