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ID number:607266
Published: 20.05.2003.
Language: English
Level: Secondary school
Literature: n/a
References: Not used

The Baby Bonus provides tax relief to families and will encourage them to have children. Lower birth rates are likely to result in a reduced rate of growth in government spending on education and payments to families.
In the future, with more older people, the working-age population and the number of workers will be low compared with the total population. With lower growth in employment, economic growth is slower. Government revenue increases with growth in the economy. If more people are in the workforce then economic growth will be stronger and the funding of government services will be spread more evenly across the population Welfare reforms will encourage more people to join the workforce by providing greater opportunities for those who have some capacity to work.
Forward planning is important to face the challenges of population ageing and increased costs of accessing the latest medical advancements. Future spending pressures will need to be managed so the quality of life continues to improve.

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