Voters want baby bonus means tested

The majority of voters want the baby bonus and other family payments withdrawn from higher-income earners and would forego tax cuts to avoid another interest rate rise, a new poll reveals.

The poll findings come one day before the Rudd government will release its first federal budget.

The Newspoll, conducted for The Australian, found 65 per cent of voters want the baby bonus means tested and 64 per cent felt the same way about the benefit paid to stay-at-home mothers regardless of household income.

The baby bonus is worth $4,258 and will rise to $5,000 on July 1.

Most voters polled want the means tests to kick in at household incomes between $70,000 and $100,000, which are lower than what the Labor government has been publicly prepared to argue for.

About 66 per cent were in favour of tax cuts but that figure plummeted to 36 per cent when voters were asked if they still supported tax cuts if they could lead to another interest rate rise.