Former Prime Minister John Howard has called on Treasurer Jim Chalmers to bring back the baby bonus in response to Australia’s declining birth rate.
Howard welcomed Dr Chalmers’ suggestion for a series of incentives for Australians to have more children in the federal budget, due to be approved on Tuesday night.
Dr Chalmers’ announcement last week follows news that Australia’s birth rate has plummeted to 1.63 in 2022, below the “replacement rate” of 2.1.
It has been 22 years since then-Prime Minister Howard and his treasurer Peter Costello introduced a “baby bonus” in the 2002 budget, a year after Australia’s birth rate fell to 1.7.
Under this policy, parents received tax cuts worth thousands of dollars – and then lump sum payments – if they had a child.
“We need more children and there is high immigration due to a declining birth rate,” Mr Howard said. The Australian on Monday.
Former Australian Prime Minister John Howard (pictured) has called on Treasurer Jim Chalmers to reintroduce the “baby bonus”
“I am delighted to hear Dr Chalmers promote the birth of more children and invite him to reintroduce the suite of Coalition policies introduced in the 1990s that led to the only increase in the birth rate for 50 years.”
Costello promoted the then coalition government’s baby incentives by encouraging women to have a baby for themselves and “one for the country”.
Dr. Chalmers was more subtle in his speech last week.
“I know people will make their own decisions and I don’t for a moment claim that the government should direct those decisions, but we want to make it easier for people to have larger families if they want to,” the Treasurer said.
One goal of rising birth rates is to put less pressure on Australia’s immigration program, which is currently at a record high.
Dr Chalmers (pictured with daughter Annabel) has hinted at incentives for Australians to have more children in the next federal budget in response to the country’s declining birth rate.
Howard highlighted his government’s baby bonus and the introduction of Family Tax A and B exemptions to raise the country’s birth rate.
Despite this, Dr Chalmers, who has faced backlash for urging parents to have more children during a cost of living crisis, rejected the idea of a baby bonus being included in this year’s budget.
“We found a better way to support people who make that decision,” the treasurer said.
Howard remains Australia’s second longest-serving prime minister, having served three terms between 1996 and 2007.
The previous Howard government’s baby bonus scheme initially provided $2,500 in tax cuts a year to parents of newborns.
It was changed to a lump sum of $3,000 two years later and had increased to $5,000 in 13 installments by 2013, when then Labor treasurer Wayne Swan announced it would be abolished.
The plan ended in March 2014.