Baby bonus

A baby bonus is a government payment to parents of a newborn baby or adopted child to assist with the costs of childrearing.

Australia[]

The government of Andrew Fisher introduced a baby bonus of £5^[1] per child in late 1912. The bonus was available irrespective of marital status and could also be received by husbands of women who died in childbirth. While Fisher told parliament that the aim was to help mothers in their time of need, the intention was also to increase birth and infant survival rates in the country.^[2]

The baby bonus scheme was reintroduced by the Federal Government of Australia in the 2002 budget was aimed at offsetting the expenses associated with bearing a child. The scheme was also introduced as a means of increasing Australia's fertility rate and to mitigate the effects of Australia's ageing population.^[3] In the 2004 budget the bonus was raised from $3,000 effective 1 July 2004 to $4,000 payable in 2007 but indexed to inflation so that in October 2007, the amount receivable per eligible child was $4,133.^[4] The bonus was paid in a lump sum to a nominated financial institution. From 1 January 2009 the payment is paid in 13 fortnightly installments. The receivable amount in January 2012 was $5,437. The receivable amount in September 2012 is $5,000 in 13 fortnightly instalments (parents will receive a higher first instalment of $846.20 and 12 fortnightly instalments of $346.15), or if the baby died or was a stillborn, parents may ask for their Baby Bonus to be paid in a lump sum instead of fortnightly instalments.^[5]

In the draft of the 2013 federal budget, the "baby bonus" would be slashed from $5,000.00 to $2056.45 as of 1 March 2014. The first newborn child will receive $2056.45, and for every subsequent child thereafter, a limited $1028.15 will be submitted.

Canada[]

A baby bonus was introduced in Canada following World War II, paying $5 to $8 monthly to all parents of children under 16.^[6]

In 1988, the Quebec government introduced the Allowance for Newborn Children that paid up to $8,000 to a family after the birth of a child.^[7][8]

In 2008, the Executive Council of Newfoundland and Labrador introduced the Parental Benefits Program, which offered a $1,000 lump sum and $100 payments for the first year after a birth or adoption. It expired in 2016.^[9][10][11]

Today, the Canada Child Benefit is one of several benefits offered by the Government of Canada.^[12]

Czech Republic[]

Currently there is a baby bonus of 13000 CZK (approx. 670 USD) for each first child born to mothers with low income. The mother must be a citizen or permanent resident of the Czech Republic.

France[]

A bonus of €944.51 is paid for each child born (means-tested).^[13]

Italy[]

Currently, there is a bonus of €960 (approx. $1,133) for every child born to household with income lower than €26,000 (approx. $30,700), and €1920 (approx. $2,266) for every child born to household with income lower than €7,000 (approx. $8,271).^[14]

Lithuania[]

Currently, there is a bonus of €405 ($475) for every child in Lithuania.

Luxembourg[]

Luxembourg's baby bonus system is split into three stages, known as allocation prénatale (prenatal allowance), allocation de naissance (birth allowance) and allocation postnatale (postnatal allowance). The allowance is universal and is not means-tested.^[15]

The total allowance amounts to €1,740.09, paid in three sums of €580.03 once each stage is complete.

The prenatal allowance can be claimed once a woman has undergone 5 obstetric examinations and 1 dental examination.

The birth allowance can be claimed once a woman has undergone a postnatal gynaecological examination. This way, a woman whose baby is stillborn or dies shortly after birth is still entitled to the first two parts of the baby bonus.

The postnatal allowance can be claimed once the child has turned 2 years old and has undergone 6 medical examinations with a paediatrician.

Poland[]

In April 2016, the PiS government, in response to low fertility rates in Poland, introduced the Family 500+ program. For every second child, parents receive 500PLN ($133) monthly until the child turns 18. For example, if a family has three children, they would receive 1000PLN every month until the oldest child turns 18, after which they would receive 500PLN.^[16]

In July 2019, the Family 500+ program was extended to include 500PLN for the first child, regardless of family's economic status.

Russia[]

As of 2020, Russia offers 616,617 RUB (USD 8145,53) for second and every following child. Amount is indexed annually with inflation. This can only be spent on housing, education, healthcare, or a mother's pension.

Singapore[]

By having two children, a middle-income Singaporean household may receive various incentives which are equivalent to S$166,000 (USD 121,400).^[17]:14 For third and subsequent child, the household will get an additional S$8,000 as Baby Bonus^[18] and S$20,000 as Parenthood Tax Rebate.

Baby Bonus Scheme[]

The Baby Bonus Scheme (formerly known as Child Development Co-Savings Scheme) was first introduced in Singapore on 1 April 2001, with enhancements made on 1 August 2004, August 2008 and 1 March 2012. The objective of this scheme is to improve on the country's fertility rate by providing cash incentives, with the hope of reducing the financial burden of raising children and thereby encouraging them to have more children. The scheme consists of two components, Cash Gift and Children Development Account (CDA).^[19]

Cash Gift[]

For Singapore Citizen children born on or after 26 August 2012, the maximum amount of cash gift from the government is S$8,000, which can be spent without any restriction. It is available to each of the first four children.^[18]

Children Development Account (CDA)[]

The Singapore government contributes a dollar for a dollar matching the amount of savings that parents contribute to their child's savings in the Children Development Account (CDA). The amount is capped at S$6,000 each for the first and second child, and S$12,000 each for the third and fourth child, and S$18,000 each for the fifth and subsequent child. The savings in this account may be used by the child and his/her siblings at the approved institutions for Child Care Centre, Early Intervention Programmes, Healthcare Institutions, Kindergarten, Special Education Centre, Assistive Technology Device Provider, Optical Shop and Pharmacy. With effect from 1 January 2013, the CDA of a child will remain open until the end of the child's 12th year, instead of the current 6th year. To date, the birth rate of Singapore has gone up by 0.2%.^[19]

Parenthood Tax Rebate (PTR)[]

Parents can claim the PTR of $5,000 for their 1st child, $10,000 for their second child, and $20,000 per child for all subsequent children. PTR can be used to offset the income tax payable. Any unutilized balance is automatically carried forward to offset the future income tax payable. Any credit balance remaining is not refundable. This rebate may be shared with the spouse.^[20]

See also[]

• Parental leave
• Child benefit
• Cost of raising a child
• Sub-replacement fertility
• Tax on childlessness
• Natalism
• Decreţei

References[]

External links[]

• Australian Baby Bonus Government Information