Vikkie and Peter Chrisoulis with their children Kathryn,11,James,nine,and Julian,six,at their home in Newport.

Vikkie and Peter Chrisoulis with their children Kathryn,11,James,nine,and Julian,six,at their home in Newport.

During that budget speech,the then treasurer Peter Costello told Parliament the baby bonus would ease the financial burden on those starting a family.

Thirteen years later Treasurer Wayne Swan said it was all over for Australian families.

It is a cut that Mrs Chrisoulis strongly disagrees with,concerned about the effect it will have on lower income earners.

''The government is struggling at the moment and they're trying to cut down on spending … but they've got to look at other options to cut down on,not the baby bonus,''she said.

The current payment of $5000 for the first child and $3000 for each subsequent baby,available to stay-at-home mothers in families with incomes of up to $150,000,ends on March 1,2014. The payments were originally a lump sum but in 2009 it was changed to an instalment system.

''People do need it. Living costs have gone up,there's struggling families out there trying to put food on the table and coming down to one income you really do need that extra cash to get you through,''Mrs Chrisoulis said.

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The family has received the bonus three times - in a lump sum - starting with Kathryn,11,James,9,and Julian,6.

Peter Chrisoulis had just started his electrical business when his daughter was born,the family appreciating the extra money that helped with items such as the food bill,nappies and clothes.

''People that need it will miss it. It does help the lower-income earners - the people that are struggling,especially if they have to give up their full-time job,''Mrs Chrisoulis said.

The current baby bonus will be replaced with $2000 for the birth or adoption of a first child or each child in multiple births,and $1000 for second or subsequent children. Families will receive an initial payment of $500,the rest to be paid in seven fortnightly instalments.

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The threshold at which families qualify will drop considerably. Under the new scheme couples earning more than $101,000 will not be eligible for a payment for their first baby. The threshold for a second baby will be about $112,000.

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