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Split over baby bonus

16/05/2008 3:51:00 PM
TREASURER Wayne Swan's baby bonus changes have upset some young mothers, but won support from others.

A survey of a dozen women at Centenary Park, Miranda, yesterday found two-thirds opposed the means test income level, but opinion divided equally on the move to pay the allowance fortnightly rather than as a lump sum.

Changes to the baby bonus and family tax benefit B, along with an increase in the child care tax rebate and many more child care places, were among key features of Treasurer Wayne Swan's first budget.

From July, the baby bonus will increase from about $4300 to $5000 and will be indexed annually.

However, from January 1 next year it will be means tested, and the bonus will be denied families with a combined income of $75,000 in the six months after the birth, or $150,000 for the full year.

Those who are eligible will be paid in fortnightly instalments of about $385.

Family tax benefit B will also be means tested, and will no longer be given to families where the higher income earner receives more than $150,000 a year.

Nicole Winn, of Gymea, who gave birth to baby Bella just 5 months ago, said the means test income level was ``a bit tough''.

Given house prices and the size of mortgage payments, couples could earn above $150,000 and not be well-off, she said.

``I think if mothers are prepared to go back into the workforce and contribute through taxation, they should be eligible for the baby bonus,'' she added.

Melanie Sidorowicz, a mother of two, of Miranda, agreed.

Both thought it was particularly unfair on some women who may have become pregnant before the announcement but will not give birth till after the means test applies.

Martine Nicholls, of Miranda, mother of Tate, 17 months, and Miah, 2, thought the means test was ``a fair call'' even though it would make her ineligible.

``I don't think high income earners need the bonus, and paying it in instalments will help people budget with children's needs,'' she said.

Johanna Detmold, of Cronulla, mother of two-year-old Luca, and Jonah, also supported the changes.

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