Jim Chalmers opposes baby bonus to fight fertility crisis, says ‘not necessarily’ given up on Budget surplus
The Treasurer said he would he would not tell Australians that they should have children despite his department warning on Monday deaths will outpace births within 40 years.
Treasurer Jim Chalmers said he does not agree with proposals for a “baby bonus” to reverse Australia’s declining birth rate, which the federal Treasury predicted this week will cause deaths to overtake births in the 2060s.
“I don’t like to tell families what decisions to make about when to start a family; whether to start a family; how many kids to have,” he said on the Today show Tuesday morning.
Coalition Treasurer Peter Costello famously introduced a one-off $3,000 payment for every baby in 2004, a policy that had a small not noticeable impact on the birth rate and was studied around the world by fertility experts. It was later raised to $5000.
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By continuing you agree to our Terms and Privacy Policy.He acknowledged his department’s four-yearly Intergenerational Report published Monday found fertility rates are falling faster than predicted four years ago, contributing to the high levels of immigration used to fill shortages of workers.
“Migration can be a force for good if it’s managed in our national interest,” Dr Chalmers told ABC television. “We have managed the numbers down quite considerably, down towards more normal levels.”
He said the government is helping families have children by extending childcare subsidies and offering more parental leave.
His Coalition counterpart, Tim Wilson, blamed the fertility crisis on expensive housing. The Coalition wants superannuation savings to be made available for buying homes instead of being reserved solely for retirement.
“The reality is with the cost of housing continuing to rise, there’s a direct correlation between that and of course family formation,” Mr Wilson told ABC radio.
“Part of the challenge is the government and the Labor Party continues to prioritise superannuation over home ownership, which means people are buying later and at a higher price, which means that Australian families are being knee-capped from the start.”
Budget deficit
The Intergenerational report predicted the federal Budget will be in deficit for the next 40 years, which would drive up public debt, increase interest costs and make it harder to cut taxes.
Asked if he had given up on delivering a surplus, Dr Chalmers told ABC radio: “No. Not necessarily.”
“The Intergenerational Report does paint a picture of some pretty serious Budget pressures and economic risks,” he told Nine’s Today Show.
“But we’re optimistic about the future because we’ve got a lot going for us as well.”
He said the Australian Government’s debt was lower than in other western countries, and would shrink as a portion of the economy over the 40 years.
Economists say the Budget deficit is contributing to inflation and making interest rates higher than they could otherwise be.
