The Coalition’s baby bonus exemplifies a mindset, rather than a sensibly policy to deal with the juggling between work and childcare. Clearly, the Coalition was not listening to the (mainly) women who are doing the juggling, whose constant cry has been for better maternity leave, more childcare places and the tax deductibility of childcare costs.
The baby bonus, announced by Prime Minister John Howard has a major plank in the launch of his policy platform, is directed at giving incentives to women to stay at home with their children for the first five years. Under the plan women who have a baby after July 1, 2001, receive a tax refund (as a refund of the tax they paid the previous financial year) of up to $2500 year for five years. If a woman goes back to work during the financial year she will lose the refund for that year. Those not in the workforce will get a flat payment of $500.
It is an absurd policy to encourage people not to work – particularly from a Government that railed against welfare dependency. Like the health-insurance rebate, it is badly directed. Many women will be in fairly high-income households and can stop work, get the rebate and still live fairly well on their partner’s income. It is middle-class welfare. It also encourages women’s dependency on partners and discourages their independence. Fortunately, the amounts of money involves are so small, that the incentives for women to give up work will be small.
Continue reading “2001_10_october_leader30oct baby bonus”