Dominic Perrottet says he wants to make New South Wales the most family-friendly state in Australia, and believes his "Kids Future Fund" will achieve just that.
But the Canadian model which inspired the premier's latest election promise shows it will benefit some families more than others.
If re-elected on March 25, the Coalition has promised to create savings funds for every child and kick in the first $400.
Every year the child's family puts another $400 in, the government will match it.
The earnings are not taxed and once the child turns 18, they can withdraw the money but they must use it on education or housing.
It is based on Canada's "Registered Education Savings Plan" (RESP), which helps families save for their child's post-secondary education.
Under RESP, the government matches 20 per cent of the first $CAD2,500 contributed each year by the child's family, to a maximum of $CAD500 per year until the child is 18.
But data from Statistics Canada shows there are twice as many RESP accounts among high-income parents than their low-income counterparts.
"Wealth is the single most important factor … behind the gap in RESP participation by level of family income. The education level of the parents also mattered, but to a lesser degree than wealth," a 2020 report by the national agency found.
The average contribution into an RESP account by the top 20 per cent of Canadian earners in 2019 was almost seven times higher than the bottom 20 per cent.
"This resulted in a gap of $18,757 in total RESP investments between the two groups."
RESP was created in 1974, but since then the Canadian government has created a "learning bond" for children from low-income families.
Even if the family makes no contributions, the government will put $500 into an account and top it up with another $100 each year until the child turns 15.
The NSW government has not left out low-income earners either.
For parents who receive Commonwealth family tax benefit A — meaning they earn less than $58,000 a year — the government will deposit $200 into the "future fund" every year even if the parents do not contribute.
If the family puts $200 in though, the government will match it.
"This supports every child across New South Wales. This supports every mum and Dad," Mr Perrottet said on Sunday.
"Every single child, when they are 18, will have a head start in life."
But one of Australia's leading economists, Nicki Hutley, says it is an indirect sugar hit and the money could be better spent on affordable housing and the education system.
"It certainly seems to be more politically driven than good economic policy," she said.
Parramatta local Bimal Mahajan has two children and said he could afford the $800 each year, but the policy would not change his vote.
"It's a good thing. It will make a difference because the cost of living is going up."
Murali Krishna, who has a four-year-old son, also said he could afford the contribution, but felt it would be a stretch if he had more children.
"There are a lot of people who can't put 400 bucks [away]," he said.
He would prefer the government use the money on schools and public hospitals.
"They could look at the bigger picture."
Labor leader Chris Minns says the commitment, which would cost $850 million over four years, was out of touch with what families were experiencing.
"A lot of families who have three children will be thinking to themselves, 'I don't have a spare $3,000 to invest in a fund that can be accessed in 20 years, I need help today,'" he said.
