The Opposition says “most families simply can’t afford” it. The NSW Liberal Party has proposed a savings fund for each child that can be spent on the cost of education or buying a home once they turn 18. The fund is an election promise and is contingent on the NSW Coalition being re-elected at the 25 March state election. NSW Labor opposes the policy, saying it only favours the wealthy.
How does it work?
Each child would be given a $400 starting payment from the NSW Government. Parents and grandparents will be able to contribute a total of $1,000 a year to the fund (including after the child turns 18). The Government will match the amount put in by parents up to $400 a year (but will stop once the child turns 18). The Government projects that if parents contribute $400 each year, the fund will be worth about $28,500 (with interest accrued over time) by the time the child turns 18. For the maximum $1,000 payment, the fund is expected to be at $49,000.
NSW Labor opposed the policy, saying it would favour wealthy families and largely exclude those who need it the most. The Opposition also said the policy fails to address issues facing NSW right now, particularly the cost of living crisis. “The truth is, the families who need the most support are the ones who won’t be able to afford to participate.”
When’s the election?
The election will take place on Saturday, 25 March. Early voting will be open from next Saturday, 18 March. It’s compulsory for Australian citizens in NSW aged 18 or over to vote.