Aussie baby bonus may get means test

CANBERRA, Australia, May 2 (UPI) -- Opposition Australian politicians have accused the ruling party of breaking a campaign promise by planning to cap the country's baby bonus.

Official sources said Prime Minister Kevin Rudd's Labor Party government is likely to place a means-test on the measure May 13, the Sydney Morning Herald reported Friday.

Treasurer Wayne Swan denied that Rudd had ever promised to keep the baby bonus intact.

"I don't think he did speculate along those lines," Swan said. He said inflation and interest rates had been driven up by "an outbreak of irresponsible spending" by Rudd's predecessor, John Howard.

"That's why in this budget we will be targeting our assistance to those people who are on modest incomes," he said.

Rudd said in March after economists called for a means-test on the bonus that the program is "safe."

"The baby bonus is absolutely safe, we committed ourselves to its retention before the election, and we will stick with it," he said.

However, the prime minister indicated Thursday that the baby bonus and other programs aimed at the middle class would be given a means test.

"I say people at the upper end of the income spectrum don't actually need direct support from the government, much," he said.