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| Paid parental leave changes
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Realistic or regressive: what do you think?
The Budget's paid parental leave changes have created a serious discussion over the last week, with working parents all over the country left disappointed, "baffled" and concerned about how the changes will affect them financially and their time with their new babies.
From July 1, 2016, primary carers will lose full access to government-funded paid parental leave if their workplace also provides paid leave. The change will save almost $1 billion over three years.
It's the government's bid to save money and will appease some PPL dissenters, but it's likely to leave many families much worse off, wondering if having a baby is financially possible and potentially forced back to work early to make ends meet, which is not good for the health and wellbeing of neither mother nor child.
Is the change in Paid Parental Leave more realistic or a step backwards in the way we treat working parents?
Current
Government funded for eligible working parents and is paid at the National Minimum Wage for up to 18 weeks. Businesses decide their own contributions and PPL scheme.
New
Government funded for eligible working parents and is paid at the National Minimum Wage before tax - for up to 18 weeks - BUT if businesses match this payment in their own parental leave schemes then parents will no longer be able to claim the government funded benefit. If businesses only provide some of the 18 weeks payment, then the government will only contribute the shortfall.
The current scheme's 18 weeks' paid leave at the minimum wage provides the basic level of support new parents really need to adequately bond with their newborn and establish breastfeeding.
The Diversity Council of Australia's CEO, Lisa Annese said it was always the intention that the existing scheme be topped up by employer-funded schemes, with 26 weeks' paid leave the minimum standard recommended by the World Health Organisation.
Only last year Tony Abbott's proposed new and enhanced PPL scheme was being enthusiastically received by mums all over Australia, believing that finally we were measuring up to other countries' schemes.
However, this proposal was shelved and now there has been what some have described as a complete "about face" in terms of the importance the government puts on encouraging working parents back to the workforce and ensuring they are able to spend adequate time with their children before doing so. The move to allow parents to claim only one set of benefit is apparent to stop parents from what the powers that be call "double dipping" on payments.
Most decent, family friendly businesses see providing paid parental leave as a means of encouraging long term staff, attracting and retaining talent and as their moral and business duty to their employees, industry and country.
Yet the fear is that some less altruistic businesses may use the new paid parental leave directives to stop paying parental leave at all and just leave it to the government to meet the statutory 18 weeks payment.
Lisa Annese says the changes to paid parental leave will not assist women or their families and are a step backwards.
"Any policy that reduces income to women and families during parental leave is a bad thing", she said.
The new measures may put additional pressure on families and mean mothers will have to return to work earlier than they wanted to.
"Importantly, this change will only add to the wage gap that women experience as a result of having children. And with some 47% of currently eligible mothers expected to lose all or part of the payment, it is going to affect a lot of people", said Annese.
We want to know what you think:
- Will women be forced back to work earlier than planned/ideal?
- How long is long enough with your new born?
- If companies no longer pay any parental leave to their employees, what does that say about their loyalty to their long-serving staff?
- While having a baby is a personal choice, aren't we collectively responsible for the future population and workforce (and economic survival) of our nation or is it purely down to individuals and businesses?
For more information on Paid Parental Leave click here
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Tell us is the change in Paid Parental Leave more realistic or a step backwards in the way we treat working parents?
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