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Will the baby bonus cut affect you?

The big news for families (or families-to-be) out of yesterday’s budget announcement was the cut to the Baby Bonus.

Parents will now receive $3000, rather than $5000, for second and subsequent children.

The reason for the cut was so the budget could remain in surplus and the rationale was that parents already have the majority of baby items from the first child so wouldn’t need to buy as many big ticket items second (and third) time around.

And parents have been vocal in both criticising and applauding the change.

Supporters say that a ‘bonus’ isn’t something we’re entitled too – it is a bonus! Others comment that taxpayers shouldn’t be footing the bill for other people’s babies anyway.

@benpobjie: This Baby Bonus cut is the most outrageous slight decrease in unearned privilege ever inflicted upon Australian families
@geeksrulz: In my day, baby bonus was the overwhelming joy of having a new baby, the miracle of life. Is it now some crass Howard era entitlement?

Those criticising the cuts, say the rationale is flawed. Your second baby still needs its own bed and carseat and nappies etc. Some people need twice as much stuff when their children are born close together. Others, with larger gaps, may have already given away or sold their baby items.

The opposition has likened it to China’s one-child policy…

Joe Hockey: “The government seems to want to penalise anyone that has a second or third child. I think that worked quite well in China, didn’t it?”

As far as I’m concerned, I’m grateful for the bonus I received after my two babies were born. But to be honest, I don’t think it went directly on baby items anyway. In it’s current form – fortnightly payments after the baby is born – we were more likely to use it on living expenses like groceries or just put it in the bank for a rainy day.

We’d bought the majority of items before each baby was born and we didn’t spend a great deal anyway as we were lucky enough to have a friend lend us a cot and to recieve a pram and change table as gifts.

But not everyone is in the same position … how will the change affect you? What do you think of the changes to the Baby Bonus?

– written by BH Editor

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2 comments so far -

  1. Although I do see the rationale for the cut and it does makes sense from a budget perspective….I am so frustrated!!! We decided to take the paid parental leave when our first child was born 16 months ago, as I am 40, I had worked for 25 years and felt it was well-deserved…BUT…it didn’t work out that way, I would have been better getting the baby bonus at that time as it was not classed as taxable income, I was taxed and it turned out to be almost worthless for us…..this time around (which will hopefully happen) I will probably not be eligible for the paid parental leave and will now receive even less of the baby bonus!!! I think it should be reduced only if you have claimed it previously, not just for a second child, that way it will cover many more people that don’t fit the “box”!!

  2. It is a discriminatory payment and should never have been introduced.

    The Howard government rode the back of the resources boom, handing money and tax cuts out, buying votes, making themselves look good, instead of investing the money in a way that would benefit everyone equally not just one limited set of people.

    I contributed to the next generation by having 2 kids, but because I, like many of my peers, started our families a couple years too early our contribution was ignored. We were not paid to have them, never paid to stay home and look after them, and didn’t receive a rebate for putting in full time care. Like many who came out of school during the 90’s recession we got by on 1 income with very limited help and were then ignored.

    Now the boom is over, the money is no longer there. And we have to listen to these people whinging that its their ‘right’ to receive this money.
    Those same people who did without to provide for their children born before 02, are now paying through the taxes they pay, for this spoilt generation to have children without having to make any sacrifices.

    Middle income welfare was one of the worst things that ever happened to this country. It’s built a selfish generation. If they can’t afford to have children without these handouts, how in heavens name did we do it.

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