Australia to abolish baby bonus

As commented yesterday, there is no rational reason for Labour's new baby bribe policy. Interestingly it also flies in the face of what Labor in Australia were proposing before their defeat late last year. The abolition of the baby bonus. Why? Because they can't afford it.

In its 2013–14 Budget, the Labor Government has again looked to tighten access and levels of family assistance to find some significant savings. One of the standout measures is the abolition of the Baby Bonus. The Government proposes to replace the Baby Bonus with a smaller supplementary payment added to a families’ Family Tax Benefit Part A (FTB-A) entitlement. The measure is expected to save $1.1 billion over five years and will be implemented from 1 March 2014.[1]

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And the proposed changes have been kept by the Coalition government (albeit they are making PPL much more generous from July 1, 2015):

Changes to Baby Bonus from 1 March 2014

Baby Bonus will no longer be available for children who are born or adopted on or after 1 March 2014. You may be eligible for Parental Leave Pay or the Newborn Upfront Payment and Newborn Supplement paid with your Family Tax Benefit Part A payments.

This gives me a steer on what National will now do to counteract Cunliffe's plan.
And Bill English has already hinted at it. Agree to Sue Moroney's bill to extend Paid Parental Leave to 26 weeks.