Australia is facing record-low birth rates, which has prompted calls for the return of the baby bonus.
The bonus was first introduced in 2002 after the country’s population hit its lowest birth rate ever of 1.7 – before it ended in 2014.
Queensland Senator Matt Canavan has told Nine News the dwindling rates is one of the biggest issues Australia is facing.
“We’ve dropped from having almost a birth rate at replacement level of near 2.0 about 15 years ago to today less than 1.6,” Mr Canavan says.
“So what that means is 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.”
According to McCrindle Research, the introduction of the baby bonus back in 2002 had a big influence on the birth rate, hitting a peak of 2.0 in 2008.
The scheme initially granted $,2,500 in tax cuts per year for parents of newborns before changing to a lump-sum payment of $3000, and then later $5,000.
However, Mr Canavan believes a baby bonus may not be the best option – saying he’d prefer to see more support for families through the tax system.
“Something like income splitting, let parents share income between themselves. That way you encourage people to work too. That happens all around the world, but not here,”
“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.”
