Perrottet defends his fund for kids against claims it will favour the wealthy

Dominic Perrottet has defended the Coalition’s signature election promise to create a “future fund” for children against criticism it will favour wealthy families. 

The NSW Premier announced at a Liberal Party campaign launch at the weekend that his government, if reelected, would put an initial $400 into a fund for each child in the state to pay for education and housing once they turn 18.

For families receiving Commonwealth Family Tax Benefit A, the state government would add $200 to each fund a year after the first year. If parents put extra money into the accounts, the state would match the yearly contribution by up to $400.

Greens Treasury spokesperson Abigail Boyd said the policy would “reward the already well off”.

“He is literally planning to give cash to those who already have cash, presenting it as a plan to help the next generation pay for vital goods and services, and all the while neglecting to mention that it is the ideology of his government that has made those things unaffordable in the first place,” Boyd said. 

Labor’s Treasury spokesman Daniel Mookhey said the families with the greatest need wouldn’t be able to afford to participate. 

“Mr Perrottet wants to solve the problems of today using the bank of mum and dad,” he said. “This is a thought bubble that won’t fix the teachers and nurses shortage or the underinvestment in our education and health systems.”

Perrottet was asked in an interview with ABC News on Monday morning whether the scheme would skew towards wealthy families. 

“We capped it at $1000,” he responded. “This is about giving every child that great opportunity. For those families who are low- to middle-income earners, they will get an automatic $200 without having to make a co-contribution.

“For those who aren’t on family tax benefits, we will make up to $400 contributions as well, so, on the basis that that is also met by the parents.”

The scheme was meant to “encourage mums and dads across NSW to save for their children and to look to the future”.

The rising cost of living is by far the biggest concern for NSW voters, polling shows, and the major parties have competing visions for how to deal with it. 

At the end of the December quarter last year, the consumer price index rose to 7.8%, the highest rate seen since 1990. During that quarter, Sydney saw the second-highest jump in inflation in any state or territory, rising 1.8% and taking inflation for the NSW capital to 7.6% annually, second only to Perth.

Labor has said it would tackle the problem with measures such as reducing stamp duty for first-home buyers, reforming rental rules and lowering power bills by investing in renewable energy and batteries. 

The Coalition has vowed to ban rent bidding, provide power bill relief, and has also pointed to its “landmark stamp duty reforms” allowing first-home buyers to pay an annual fee rather than a lump sum up front.

The Greens would aim to establish a “public bank of NSW” that would “reinvest public funds for public purpose”. 

The Coalition children’s fund would cover all children aged 10 and under this year, plus all babies born from now, at a taxpayer cost of $850 million over four years. 

Children whose parents add $400 each year would have about $28,000 in their funds when they turn 18, while children whose parents add the maximum $1000 a year would have $49,000. 

“This investment will change the lives of millions of children across our state … This is a down payment to secure the future dreams of our children,” Perrottet said.