Bob Carr’s scathing attack on Perrottet’s ‘super for kids’

Former NSW Labor premier Bob Carr has slammed Dominic Perrottet over his “super for kids” policy, calling it “middle class welfare”.

One of NSW Premier Dominic Perrottet’s predecessors has given a damning assessment of the Liberal Party’s new “super for kids” policy, calling the last-minute election promise “desperate”.

Mr Perrottet this week banked his re-election hopes on a policy proposal dubbed the Kids Future Fund, which would see all kids under 10 handed an account with $400 in it, with the government to match parents’ contributions up to $400 per year until they turned 18.

The policy has been slammed by Labor and social advocates, who claim it will worsen entrenched inequality.

Former NSW premier Bob Carr (right) called the policy ‘desperate’. Picture: Monique Harmer/NCA NewsWire

Former NSW Labor leader Bob Carr, who served as NSW premier for a decade up to 2005, added his voice to the chorus on Monday evening.

“Perrottet’s ‘super for kids’ policy has blown up. Responses everywhere show it’s seen as middle class welfare,” Mr Carr tweeted in the scathing assessment.

“It’s also a massive addition to state liabilities and debt. A hit to most taxpayers. And looks desperate.”

Under the proposed policy, parents could choose to create the account for their kid, which could only be used for housing and education purposes, like purchasing a property, HECS debt, paying for university textbooks, or a laptop for study.

It’s expected to cost the government $850 million over four years.

Social advocates expressed concern that the Kids Future Fund would worsen inequality, given it relies on parents’ ability to pay.

Joanna Quilty, chief executive of the NSW Council of Social Service, said the benefits of the scheme would vary for each family.

“With housing stress rife across NSW and the cost of everyday essentials skyrocketing, low-income families – particularly those living below the poverty line – don’t have any money to spare,” Ms Quilty told The Guardian.

“My concern is that this policy risks further increasing the poverty divide – where wealthy families can take advantage of this initiative to bolster their child’s financial future, while poorer families are left behind.

“We would strongly advise the NSW Coalition to consult widely on this policy to ensure it doesn’t further entrench social inequality.”

NSW Labor treasury spokesman Daniel Mookhey similarly said it was a policy ‘grabbed from the bottom of the drawer’. Picture: Chris Pavlich/The Australian

Grattan Institute economist Brendan Coates similarly called the policy an “extra leg up” for kids from wealthy families.

“Poorer families – those who most need support with both education costs and housing – are the least likely to have the cash to spare to contribute,” he told the publication.

“This is exactly how co-contribution schemes in super play out: they largely benefit wealthier households with the cash to spare, whereas those with low super balances struggling to get by don’t make extra contributions. There’s little evidence that co-contribution schemes actually encourage more savings overall.”

NSW Labor predictably slammed the policy, calling it a last-minute pitch “from the bottom of the drawer”.

The party’s treasury spokesman Daniel Mookhey said it ignored the cost of living pressures faced by NSW households.

Mr Perrottet said the policy meant ‘every child would be better off’. Picture: NCA NewsWire/ Monique Harmer

He described it as a “policy that the Premier has grabbed from the bottom of the drawer on the eve of the election without having done his homework”.

“Labor’s priorities is to put every spare dollar towards fixing the crisis in our schools and in our hospitals,” Mr Mookhey said.

“It seems as though the families that need the help the most will benefit the least from this policy, because they don’t have the money to put into this account.”

Mr Perrottet, meanwhile, defended the policy.

Responding to questions on Monday night, Mr Perrottet insisted the future funds meant “every child in our state will be better off”.

Karl Stefanovic took a friendly jab at the policy, asking how Mr Perrottet planned to fund it for his ‘26 kids’. Picture: NCA NewsWire/Monique Harmer

“This will benefit every single child across NSW,” the Premier told Channel 10’s The Project.

“If there was a family on Family Tax benefits, which is around 300,000 families across NSW, we will automatically make an annual $200 contribution into the account without a co-contribution from the family.

“We don’t do enough to help our children deal with the cost of education and housing, so this is a this is a game-changing policy.”

He said the accounts could reach $28,000 by the time a child enters adulthood if their parents add $400 each year, or $49,000 if parents deposit the maximum contribution of $1000 a year.

Today showhost Karl Stefanovic took a friendlier jab at the policy.

Mr Perrottet was joined by about three dozen children on stage when he made the proposal on Monday. His seven children also attended the event and joined him on stage after the speech.

“You have 26 kids. How will you afford this every year,” Stefanovic joked.

In response Mr Perrottet said: “They weren’t all mine behind the stage yesterday, Karl.”

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