Prime Minister Julia Gillard has made her third family-friendly budget promise this week, announcing changes to the family tax benefit that encourage older teenagers to stay in school.
During last year's election campaign, the federal government pledged to extend the maximum rate of FTB part A for families with a teenager up to 19 years old, rather than cutting it off when they turned 16 as it does presently.
As a result of the change, which will be part of next week's budget, families could receive up to an extra $4200 a year for each eligible teenager that stays in school.
The measure will cost $771.9 million over five years.
Ms Gillard said the current system made the false assumption that teenagers cost less than younger children.
"It's an old-fashioned model that's really based on an assumption that kids are likely to leave school early," she told reporters in Sydney on Wednesday.
"Well in the modern age we don't want kids leaving school early - we want them engaged with full-time education getting the skills that they will need for the rest of their lives."
