Rudd Government delays paid parental scheme to 2011

Melina Cruickshank
May 11, 2009
Will working families be better off under the new government initiative?

Working mothers are questioning the delay and the means testing

The Federal government has delayed their 2007 election promise of a paid parental leave scheme for another 18 months, and restricted it to primary carers earning less that $150,000. On Essential Baby, working mothers are questioning the delay as well as the means testing.

The Federal government has delayed their 2007 election promise of a paid parental leave scheme for another 18 months, and restricted it to primary carers earning less that $150,000.

Federal Treasurer Wayne Swan, who will hand down his second budget on Tuesday 12th May, said the scheme will pay the federal minimum wage for 18 weeks and will be funded by the government, not business.

The scheme is long overdue and was one of the Rudd Government's primary commitments in the lead up to their 2007 election win. The government has also decided not to mandate paid paternity leave.

On Essential Baby, working mothers are questioning the delay as well as the means testing:

"Basically if you're a high income earner then you don't deserve to be home with your children for 18 weeks, or you have to fund it yourself?"

"If you're a nice traditional family with Dad earning more then you're set. And yes I'm well aware that fathers can be the primary carer, but one of the major points of paid maternity leave is to assist with the establishment of breastfeeding. I am so glad I work in public service and therefore get paid maternity leave."

"I could understand if they just made it *family* income but why the primary carers income? Women are increasingly becoming the primary income earners, and what do you do about single mothers?"

"My fear is, businesses that are now paying paid maternity leave, ours pay 12 weeks, will cease to do this from now, knowing that the government will be paying the bill come 2011 (or perhaps sooner as it seems some are pushing for)."

"The Rudd government is doing the wrong thing by waiting until 2011 now, because employers won't start their own schemes in the meantime."

"I have a number of friends that are the higher income earner in the partnership. This won't help them - it's token".

"If there are so few women of childbearing age earning over $150K then why cut them out in the first place?"

"I am all for paid maternity leave but it should be a fair system. Have a joint income cap - it affects the whole family."

"All this is saying is that women who earn more than $150K do not deserve to have the same respect shown to them and their baby as women earning less than this."

The facts on the proposed scheme:

  • It will starts on January 1, 2011
  • High income primary carers earning over $150,000 will not be eligible. The means test will be based on the primary carer's income not on the household income.
  • The cost of the scheme will be approximately $260 million per annum;
  • It will be funded by the government, not business.
  • Employers may run their own paid parental schemes over and above what is offered here.
  • The primary carer will receive 18 weeks post-natal leave, paid at the adult federal minimum wage (currently $543.78 per week)
  • Baby Bonus and Family Tax Benefits A and B will continue to be available for stay-at-home mothers.
  • Recipients of the parental leave scheme will not be eligible to also receive either the Baby Bonus or Family Tax Benefit Part B.
  • Employers will not be required to pay superannuation on paid parental leave entitlements.

Have your say on the proposed scheme here.

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