If Mum goes back to work early she can transfer part of her entitlement to Dad
The Productivity Commission wanted to give fathers two weeks' paid leave with their new babies ? but that idea is on the backburner as the Government looks to contain the cost of its 2009-10 budget spending.
The Government has promised to implement a paid parental leave scheme from January 1, 2011, in which mothers earning less than $150,000 will be paid the federal minimum wage of $543.78 a week for 18 weeks.
But in an effort to contain costs of the scheme, both for employers and taxpayers, fathers will miss out on the two weeks' paid leave initially recommended by the Productivity Commission.
The Government has also tried to make its proposed scheme more friendly to business. Employers won't be hit with superannuation payments for their employees who take part in the government-funded parental leave scheme.
Mothers who take advantage of the government-funded scheme will also not continue to accrue leave entitlements at their workplaces while they take time off with their babies.
The changes will be reviewed two years after the scheme begins.
Mothers will have access to the government scheme if their babies are stillborn ? and it will also apply to workers not normally covered by maternity leave arrangements in the private sector, such as casual employees and contractors.
The scheme has a net cost of $731 million over five years.
Sex Discrimination Commissioner Elizabeth Broderick was pleased.
"As a long-term advocate of paid parental leave and the fourth sex discrimination commissioner to call for its introduction, I'm absolutely delighted to see the introduction of paid parental leave has made it into the budget this year, and I congratulate the Rudd Government for that. Now that I've seen more of the detail, I am reassured on a number of things, one is the wide eligibility so it will cover self-employed people, contractors and casuals.
So its wide eligibility will give women choice, choice to choose between the baby bonus and family tax payments or the paid parental leave scheme. So I can say no woman will be worse off because of its introduction. It has a review period which will look at extending the scheme. And to add a two-week paternity paid scheme, that is to include dads in this scheme. Having said that, Mum can transfer as a primary carer. If she goes back to work early she can transfer part of her entitlement to Dad."
Discuss the budget with Essential Baby members here.
