# Labor backs childcare over baby bonus for births

> Australia's intergenerational report predicts more deaths than births in 40 years. Labor says universal early childhood education, not cash payments, is the answer.
- Title: Labor backs childcare over baby bonus for births | Shortify
- Summary: Australia's intergenerational report predicts more deaths than births in 40 years. Labor says universal early childhood education, not cash payments, is the…
- Keywords: australia, labor, fertility rate, childcare, baby bonus, jim chalmers, anthony albanese, intergenerational report, population decline, news, world, backs
- Source: the Guardian — https://theguardian.com/australia-news/2026/sep/21/universal-early-childhood-education-better-than-baby-bonus-to-increase-australias-birthrate-labor-says
- Published: 2026-09-21T08:23:47+00:00
- Read time: 1 min
- Topics: australia, labor, fertility rate, childcare, baby bonus, jim chalmers, anthony albanese, intergenerational report, population decline, news, world
## Australia faces historic population shift
Monday's intergenerational report shows more Australians will die than be born in forty years. It is the first time the three-yearly report has forecast more deaths than births.
## Fertility rate projected to drop sharply
Australia's fertility rate is projected to decline to one point three four by twenty sixty-five to sixty-six, down from one point five children per woman in twenty thirty to thirty-one.
## Fifty years below replacement level
Fertility rates have been below the replacement rate of two point one children per woman for fifty years. This contributes to a projected population drop of one point seven million people.
## Multiple factors drive the decline
The report cites greater access to contraception, more time in education, career development, longer periods living with parents, and delays in forming partnerships and having children.
## Chalmers rejects baby bonus approach
Treasurer Jim Chalmers said Labor is making it easier for adults to choose to have more children through expanded paid parental leave, superannuation settings and childcare access, not cash payments.

> When it comes to fertility rates, I do not and will not give people free advice about these very personal decisions that they make about whether to start a family and when to start family.
## Albanese prioritizes universal childcare
Prime Minister Anthony Albanese wants universal childcare to be part of his political legacy. The government commissioned Deloitte to design a universal system, with its report due before the next election.
## Coalition divided on baby bonus return
Liberal frontbencher Andrew Hastie said he was open minded about a baby bonus payment. Nationals leader Matt Canavan rejected it, saying solutions should help families work toward their own advancement.

> The baby bonus, it was just 'Here's some cash', without you having to put in the effort as well.
## Key takeaway

Australia's fertility rate is projected to fall to one point three four by twenty sixty-five to sixty-six, prompting Labor to reject a baby bonus in favor of universal childcare access.