The Albanese government is seeking to encourage Australians to have bigger families through expanded investments in paid parental leave and early childhood education.
“I was asked about birth rates in the budget. That has been on a trajectory of long‑term decline, as you know,” Mr. Chalmers said.
“A predecessor of mine from a few ago, Peter Costello, talked about this a lot. A healthy birth rate is good for Australia and we want to make it easier for people to make that choice if they want to.”
While clarifying that bringing back the baby bonus is off the table, Mr. Chalmers, together with Finance Minister Katy Gallagher, said that the government is working on expanding the paid parental leave and paying superannuation guarantee on that scheme to encourage more Australians to choose to have bigger families.
The government confirmed that the cost of applying super to paid parental leave starting July 2025 would cost $1.1 billion (US$726 million) over four years, and then $623.1 million ($411 million) a year thereafter.
“I know that people will make their own choices, and I don’t pretend for a moment that government should direct those choices,” Mr. Chalmers added.
“But we want to make it easier for people to have bigger families if they want to.”
Workers Union, Educators Welcome Expanded Investments
The Australian Council of Trade Unions (ACTU) expressed support for the government’s plan for funding superannuation for workers on paid parental leave, along with wage increases for workers in aged care and early childhood education sectors.“Along with the superannuation announcement, this is a major investment in industries traditionally undervalued and dominated by women workers,” ACTU President Michele O’Neil said.
“The aged care and early learning sectors are critical social infrastructure, supporting our oldest Australians with high-quality care, and our youngest with skilled educators and carers.”
Community Early Learning Australia (CELA) also welcomed the announcement, which came after months of negotiations with the government and other parties.
“This funding commitment is a significant step towards creating a multi-employer agreement that properly values early educators and teachers,” CELA CEO Michele Carnegie said.
“This will be a game changer for the long day care sector. We look forward to finalising the new multi-employer agreement so small and community providers can attract the qualified staff they need.”
Meanwhile, Shadow Treasurer Angus Taylor cautioned that the Albanese government needs to exercise restraint in spending amid households struggling and showing restraint in their own budgets.
Mr. Taylor asserted that the government needs to follow Mr. Costello’s budget balance rules, that were placed in the 1990s, to ensure a structural budget balance.
