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.