Labor’s policy on the run

02/08/10

Julia Gillard’s announcement today is a response to her own political problems – not a response to the problems faced by Australian families.

In fact, Ms Gillard said as much today:

QUESTION:

Prime Minister, I might be missing something, but you seem the same today to me as you did yesterday. Your campaign events are running a pretty similar course. So, how exactly are you going to be more real and are you worried it might just look like you're getting a bit desperate?

JULIA GILLARD:

Well, with the greatest of respect, I don't remember yesterday announcing a huge new investment in the nation's future, a transformation of school education, and a transformation of the Family Tax Benefit system.

(- Press conference, Emu Plains, 2 August 2010)

The problem with making policy on the run for political objectives is that it creates anomalies.

Ms Gillard expresses concern that “a sharp drop in family support can encourage teenagers to leave school early.” (Julia Gillard, press release, 2 August 2010)

Yet under her scheme released today, which will not begin until 2012, students will go on a roll-coaster ride of financial support, which offers mixed messages about whether to stay in school.

For example, a child who turns 15 this year, on the maximum benefit of $6,161 a year, will receive much less next year ($2,062) before going back to $6,161 in 2012.

Then, when the child turns 19, the payment will fall again to $2,518.

The encouragement to stay in school will be too late, and will create a roller coaster ride of uncertain financial support for students and their families.

Labor has claimed that the funding will be fully offset.

They need to explain exactly where the $668.5 million in cuts will be made.