Thursday, March 11th, 2010
Opinion: Barry Haase on paid parental leave
Barry Haase MHR
Local member Barry Haase outlines the opposition plan to introduce paid parental leave.
A Liberal-National government would fund six months’ leave for ‘primary caregivers’ if it wins the next election, he said.
You can read his comments here:
10th March 2010
The recent announcement of the Coalition’s proposed Paid Parental Leave Policy (PPL) is one that small business, independent contractors, the self employed and families will welcome with open arms. These groups will no longer be discriminated against by not being able to offer long term career paths for women. Traditionally, skilled women leave small businesses after childbirth, with few prospects of returning and climbing the private enterprise ladder to either management or ownership of their own business. The public service and large business will no longer have an unfair advantage over the recruitment of women in regards to parental leave. All will now be on a level playing field giving women far more work related choices as this PPL will be available to both public and private employment sectors.
On average, 280 000 women in Australia have a child. Of these, 170 000 are employed and from this group of working women some 60 000 return to work within six months.
The Coalition’s proposed PPL will introduce a national leave scheme that will give the primary carer six months leave at their real salary, capped at an annual salary of $150 000 or the Federal minimum wage, whichever is greater.
To receive the PPL it is proposed that recipients must have a paid work average of at least one conventional day a week for the qualification period and ‘continuous’ employment for at least 10 months of the 13 months prior to the expected date of the birth or adoption. If a carer earns less than the Federal minimum wage (ie working part-time), the PPL scheme will ‘lift’ their entitlement to the Federal minimum wage – currently $543.78 per week so that they will receive $14,138 (gross).
It is envisaged that the scheme be funded through a levy on large businesses with taxable income above $5 million. . A 1.7% levy on taxable income above $5 million would affect approximately 3,200 companies.
This proposal would not impose a new regulatory burden on small business because the scheme will be paid and administered by the Federal Government, through Family Assistance Offices.
This visionary scheme will allow women to choose a career at the beginning of their working life with the knowledge that in the future they will be able to have a child, spend the very important first six months with the infant and still return to their job with no economic loss. The mortgage will continue to be paid, household expenses will be met and food will be on the table. The proposed PPL is set at six months as per key maternal health organisations recommendations on minimum periods for exclusive breastfeeding.
This proposal will encourage increased participation in the workforce thereby generating higher productivity and this is what Australia needs at this time of burgeoning economic growth.
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