Former Prime Minister John Howard has called on Treasurer Jim Chalmers to reinstate a baby bonus scheme in Australia, which originally provided new parents with a lump sum payment starting at $3,000 per child, eventually increasing to $5,000. This policy, introduced by then-Treasurer Peter Costello in 2004, aimed to address the declining birth rate at that time.
Costello famously encouraged families to “have one for mum, have one for dad and have one for the country,” and the initiative significantly impacted the birth rate. By 2008, the average number of births per mother rose to 2.0, and Australia saw a peak of 301,617 births in 2011, surpassing the post-World War II baby boom.
Howard has expressed disappointment that subsequent governments did not maintain these policies, suggesting that restoring the baby bonus or introducing similar support could help combat the current concerning decline in the fertility rate. The Coalition has echoed his call for a new baby bonus scheme.
Despite this push, Nationals leader David Littleproud questioned whether a $3,000 payment would be sufficient for families struggling to make ends meet. He voiced concerns, stating that a baby bonus would not encourage families who are financially unable to have more children. Littleproud noted that friends of his, eager to expand their families, often find the financial realities daunting and that merely introducing a baby bonus would not solve their funding challenges.
The urgency of addressing Australia’s birth rate is underscored by recent statistics, showing a significant decline. In 2023, the fertility rate dropped to a record low, with only 286,998 births, marking a 4.6 per cent reduction, roughly 14,000 fewer births compared to the previous year. This situation raises important discussions about viable strategies to support families and encourage higher birth rates in Australia.