Australia’s Baby Bonus, implemented from July 2004, provided a $3,000 payment for each newborn child, aiming to support families and boost fertility rates. Twenty years later, this paper explores whether the Baby Bonus shifted the course of these young people’s lives in a measurable way.

Declining fertility rates are a worldwide phenomenon, with Australia no exception. Australia’s fertility rate has fallen to a record low of 1.5 births per woman. This report examines both the drivers of fertility decisions and the lessons from past policy interventions. It finds the decline in fertility has been driven by three factors.

Australia, like many developed countries, is experiencing a significant decline in its total fertility rate. The First Child Tax Refund and the Baby Bonus policies aimed to reduce the financial cost of childbearing, with the Baby Bonus designed to encourage higher fertility. This note examines the effects of these financial incentives on fertility outcomes.

The JobSeeker Coronavirus Supplement was designed to support households that experienced job loss during the COVID-19 pandemic. This paper found that these higher benefit payments lead to a change in labour market behaviour, reducing the incentive for people to work. It provides three lessons from the research.