A FEDERAL Nationals MP is backing the retention of the baby bonus despite saying the $5000 payment was a two-edged sword in his electorate.
The coalition is divided over a government decision to reduce the bonus to $3000 for second and subsequent children.
Shadow treasurer Joe Hockey reportedly is keen to back the decision because of its brings savings to the budget.
But those in the coalition, including The Nationals, appears to have won the argument for retaining the $5000 payment.
Mark Coulton, the MP for Parkes, admits the bonus payments have not been the greatest success in his western NSW electorate.
"In some parts of my electorate it has not been the greatest piece of social policy," he told reporters in Canberra on Friday.
"But for young working families it has been a huge boost."
The bonus should stay as there needed to be an incentive for women to stay out of the workforce for a while, the MP said.
Opposition frontbencher Christopher Pyne said there was no division "whatsoever" within shadow cabinet on the matter.
"It was the Peter Costello/(John) Howard brainchild," he said, adding the bonus reflected the costs new families faced.
Australian Greens MP Adam Bandt said the Greens would consider the changes once they were up for a vote.
"The real issue is whether the government has the guts to stand up to powerful interests like the big miners to raise the revenue we need the services Australians expect," he said.
Assistant Treasurer David Bradbury said Mr Hockey had been "so embarrassingly overturned" by his colleagues.
"This was the man out there beating his chest to curb the age of entitlement," he said.
Mr Hockey would now vote against the responsible saving of half a billion dollars.
"He has been humiliated in shadow cabinet as Mr Abbott has rolled him on this issue."
