Changes to the Taxation Laws Amendment (Baby Bonus) Bill 2002 have been introduced into the House of Representatives to implement the Howard government's "baby bonus"announced last year during the Federal election campaign. This legislation clearly demonstrates that the Coalition government is not listening to what women really want.

This Coalition policy is clearly targeted at high income earners and does little for women on average or low incomes. On the Coalition's own figures the maximum rebate of $2 500 will only be able to be accessed by women who earn in excess of $52 666 pa.

It is estimated that this will be less than 3% of the female workforce.

Increasingly women make up the casual workforce and thus earn least. It follows that they will pay the least tax and therefore will only be able to access the lower rebate amounts. Thus women who may need the benefit most will receive the least from such a rebate.

The Baby Bonus will apply to assessments for income years commencing after 30 June 2001 and is designed to repay to mothers the tax paid on their income (up to a limit) in the year prior to the birth of the child.

The main elements of the Baby Bonus legislation will be that:

• it is available to parents following the birth, adoption or otherwise obtaining of legal responsibility for a child on or after 1 July, 2001;
• it is a refundable tax offset of up to $2,500 per annum until the child turns 5 years of age;
• there is a minimum entitlement of $500 per annum for low income earners (those with a taxable income of $25,000 or less in the claim year) until the child turns 5 years of age;
• a person may choose to transfer their entitlement to the Baby Bonus to their spouse;
• a person is able to make a claim for the Baby Bonus as part of their tax return process; and
• a person who is not required to lodge income tax returns will be able to claim the Baby Bonus by lodging a claim form with the ATO.

The financial impact of the Baby Bonus for the government from 2002 to 2006 is $1.2 billion, money that could be better spent.

Clearly, what women in Australia need and deserve is access to paid maternity leave as well as a range of family friendly working conditions and quality childcare. This would allow clear choice in child rearing options.

The Howard legislation goes no way to addressing these fundamental issues.

Australia lags far behind the rest of the world in its provision of paid maternity leave with many women struggling even to access unpaid maternity leave.

Instead of media-grabbing announcements such as this, the Howard government should commit to improving access to affordable and high quality childcare so that women and men can make real choices in regards to their child rearing arrangements.

The adoption of the ILO Convention of 14 weeks paid maternity leave as well as the introduction of family friendly industrial relations laws would do far more to improve the conditions of women workers, families and our society in general.

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