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Baby bonus cut very welcome

Media release from Sustainable Population Australia (SPA); Further information: Jenny Goldie 0401 921 453
See also: Baby bonus 'scrapped' in budget in the SMH, Government scraps baby bonus in deficit budget on the ABC.

Sustainable Population Australia (SPA) today wholeheartedly welcomed the Budget decision by the Federal Government to abolish the baby bonus from March 2014.

Instead eligible families will receive increased family payments (Family Tax Benefit Schedule A) when they have a new baby.

SPA National President, Ms Jenny Goldie, says introduction of the baby bonus by the Howard Government was ostensibly to help families with the costs of having a baby. It became associated, however, with the then-Treasurer Peter Costello’s call to increase the birth rate (“One for Mum, one for Dad and one for the country.”)

“This was probably the most unwise thing Costello ever said,” says Ms Goldie. “The last thing this country needs is a boost to its population. Our annual natural increase of over 150,000 is on top of excessive immigration levels (net migration 228,000 to September 2012).

“Whether it was causation or simply correlation, after the introduction of the baby bonus, Australia’s fertility rate went from 1.7 to 2.0 before dropping back to 1.9. This places us amongst the highest of OECD countries.“

Ms Goldie says Australians have to appreciate that the country is already overpopulated.

“Most environmental indicators are going down, not least biodiversity, and our largest cities congested. Infrastructure is not keeping up with population growth so services are declining.

“It is critical that we stabilise population numbers as soon as possible. Abolishing the baby bonus is a welcome first step,” Ms Goldie says.

Further information: Jenny Goldie 0401 921 453

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Comments

Originally published before this article was published here in Miscellaneous Comments with Subject of End of Baby bonus welcomed. Comment was move here as much of its content lies within this article's subject area. The original title was changed because it was too similar to this article's title. - Ed

Axing the Baby Bonus and pruning family payments will strip middle-class families of more than $3 billion in benefits, as the Gillard government weans working parents off welfare. The trend of "weaning off welfare" has broader implications considering the massive budget abyss of debt. Maintaining our economic-growth pyramid will inevitably become more expensive and hostile to the participants - especially the vulnerable at its base - those on fixed incomes and welfare.

However, our government hasn't dismissed the Ponzi demographic growth pyramid, and the costs of our population growth. The budget has set aside $24 billion for infrastructure spending, which will never see closure while our cities continue to expand. Key urban public rail projects include the Melbourne Metro rail project ( $3 billion) and Brisbane’s Cross River Rail project ( $715 million).

A 2010 report by Curtin University which found that state development costs including infrastructure for new suburbs are $684,000 per dwelling. At the national average of around 2.6 people per household that’s approximately $263,000 per person.

Download Assessing the Costs of Alternative Development Paths in Australian Cities (612 Kb) at http://sustainability.curtin.edu.au/local/docs/Curtin_Sustainability_Paper_0209.pd .

With access to jobs by temporary and permanent migrants, the welfare budget can only explode.

SPA National President, Ms Jenny Goldie, says introduction of the baby bonus by the Howard Government was ostensibly to help families with the costs of having a baby. It became associated, however, with the then-Treasurer Peter Costello’s call to increase the birth rate (“One for Mum, one for Dad and one for the country.”)

“This was probably the most unwise thing Costello ever said,” says Ms Goldie. “The last thing this country needs is a boost to its population. Our annual natural increase of over 150,000 is on top of excessive immigration levels (net migration 228,000 to September 2012).

“Whether it was causation or simply correlation, after the introduction of the baby bonus, Australia’s fertility rate went from 1.7 to 2.0 before dropping back to 1.9. This places us amongst the highest of OECD countries. “