By Greg Thomson, Community Newspaper Group editor-in-chief
IN 2004, former Treasurer Peter Costello famously urged families to have three children – one for dad, one for mum and the other for the country.
Australians were not used to our political leaders venturing into such social engineering, but the basis for Mr Costello’s commentary was grounded in cold, hard economic reality.
You see, the average Australian household size is projected to fall from 2.6 people per household in 2001 to between 2.2 and 2.3 people by 2026.
By next year, the rate is expected to have fallen to just 2.5 people per household, already below New Zealand and Japan that are both at 2.6.
It seems the cost of having children is forcing us to make do with fewer; to stop short of a second, or third child.
The problem with this is that in many years from now there will be insufficient taxpayers to help fund an ageing, retired population that will continue to require expensive government services such as hospitals and police.
Federal treasurers have long worried that Australia will soon have too many “burners” within the tax system, rather than the “earners” who pay their way through income tax.
A solution to the problem was the introduction of the baby bonus – now worth $5000 for each newborn.
A few years on, and Kevin Rudd and Tony Abbott are locked in a bidding war over which party will introduce the better system of paid parental leave.
The good news for families is that no matter who wins the next election, paid maternity leave is all but assured.
Paid maternity leave is fantastic for families, and to borrow a term from Mr Costello, is good for the country too.
If paid parental leave helps encourage more families to have that extra child, then the taxpayer investment will surely be recouped when those babies grow into adult taxpayers, helping keep the likes of me happy and healthy in retirement, many years from now.