It was a controversial policy which saw the Howard government pay parents to have children and boost Australia's population. More than two decades on there are calls to bring back the baby bonus to lift lagging birth rates.

Council of the City of Sydney

There are renewed calls to bring back the baby bonus scheme in Australia, a policy first introduced by the Howard government in 2004, as the country's birth rate continues to decline. Former Prime Minister John Howard and current Liberal leader Susan Lee have both expressed support for reconsidering the scheme, which provided financial incentives to families with newborns.

Despite these calls, the current government has stated it does not plan to revive the baby bonus, instead highlighting increased paid parental leave and changes to childcare subsidies as alternative measures to support young families. Public opinion on the scheme remains mixed, with some questioning its effectiveness as an incentive to have children.

Calls to revive baby bonus amid falling birth rates

It's one of the more memorable political slogans. Have one for mum, one for dad, and one for the country. Promoting the Howard government's baby bonus scheme back in 2004. Now more than two decades on, tonight there are calls to revive the policy. We need to do something about our birthing rates. Since 2021, the number of births in Australia has steadily fallen. Former Prime Minister John Howard says bringing back the scheme could turn those numbers around. If you're going to get success in Australia, it's not going to be via more dollars, it's going to be via more housing. Current Liberal leader Susan Lee isn't against the idea. I know a lot of my party room is talking about it, and I know it's very important for young women. But what do Australians think? I don't think it should be used as an incentive to have children. It'll be a funny thing, because people start buying TVs and things. A baby bonus payment of $5,000 for a newborn back in 2008 is now equivalent to just over $7,500, and that would provide some relief to young families and their bottom line. It's a good thing. It'll turn over the economy a bit more and more achievement for the young couples who are just getting married. The Albanese government has no plans to revive the baby bonus scheme, but acknowledges many families are choosing not to have kids because of the soaring cost of living. From our government's point of view, we think it's families who are best to make a decision about whether they want to have children, and if so, how many. Labor is also trying to ease the burden on Australians with young families with increased paid parental leave and changes to childcare subsidies. I think there's other alternatives, and I think income splitting and letting young couples decide. Matthew Carstuenen, 10 News.

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Breakdown