Does the Intergenerational Report under-state future family costs?

At the time of the second intergenerational report, I lamented the rapid increase in family payments. Fortunately the third intergenerational report shows that these have since stabilised.

Indeed, annual per person family payments (Family Tax Benefit, childcare, Baby Bonus/parental leave) are at $980 a year for 2009-10 only $10 higher than forecast for this financial year in 2007. FTB is slightly down (the means test on FTB B?) but childcare is up by 75%.

Rather optimistically, family payments are forecast to have slightly decreased by the end of this decade to $960 a year. I find this difficult to believe. For a start, there are already active plans to increase FTB handouts via overcompensation for the ETS. While the Coalition may be able to stall this for a while, their overall weak political position means that Senate obstruction has a use-by date. Continue reading “Does the Intergenerational Report under-state future family costs?”