A costing of Labor’s Baby Care package announced yesterday has revealed that the package faces a $347 million shortfall.
The forward estimates for the Baby Bonus as confirmed by the Treasury are:-
Budget Year |
2003-04 |
2004-05 |
2005-06 |
2006-07 |
2007-08 |
Expense $m |
150 |
220 |
260 |
300 |
250 |
False Claim on Minimum Wage
Labor is also making false claims about the value of their baby care payments to parents. Labor says the payment will be “delivering the equivalent of 14weeks of pay for people on the Federal Minimum Wage (after tax) by 2010”.
This claim is false.
The current Federal Minimum Wage is $448.40 per week which converts after tax to a take home wage of $384. Fourteen times $384 is $5376.
Labor’s policy is that $5380 will be paid in 2010 - this is equivalent of 14 weeks of the 2004 Federal Minimum Wage, NOT the 2010 wage.
The only way Labor can deliver its policy of “14weeks of pay for people on the Federal Minimum Wage (after tax) by 2010” is by holding the Federal Minimum Wage constant between now and 2010.