By Andrew Laxon
political reporter
Almost half the country's new parents will get a baby bonus of up to $1200 from October 1. But unlike plans for paid parental leave, working mothers and fathers who qualify will not have to take time off their jobs to look after their newborn.
Families on benefits, student allowances or ACC will not be eligible for the payment, which will cost $80 million over the next three years.
The Government's announcement of the $150-a-week payment over eight weeks for lower-income earners drew a mixed reaction from MPs and the public. Some mothers welcomed the payment as better than nothing. But Alliance list MP Laila Harre condemned it as "a shoddy baby bribe" that would not stop her campaign for true paid parental leave.
The new income-tested bonus will be available to about 26,000 families a year - 45 per cent of all births. Families must apply to Inland Revenue when they have a baby to receive either a tax credit at the end of the year or an immediate payout of four fortnightly instalments of $300.
Families earning up to $33,546 can claim the full amount for a first baby. The income limit for a full payment for a second child is $41,693 and for a third child $49,840.
The payment reduces gradually as a family earns more. For a third baby, for instance, a family on $51,840 get only $600 while a family on $53,840 or more get nothing.
The Government was initially forced to consider some form of payment for new parents last year, when Laila Harre's private member's bill for 12 weeks of employer-paid parental leave gained strong parliamentary and public support.
Yesterday, however, senior National ministers rejected paid parental leave. They argued that the tax credit was fairer because "it is met from general taxation, is available mainly to low and middle-income families and doesn't discriminate against mothers who don't work."
Later, the Minister of Social Services, Roger Sowry, said he expected many parents would use the payment as a chance to take time off work.
But Labour's social welfare spokesman, Steve Maharey, said the so-called "family friendly" Budget did not require parents to do anything more than have a baby.
"It's just a baby bonus - it's a straight bribe. There's no obligation for you to stay home and look after your kids."
