The Albanese government has introduced to Parliament a bill aimed at increasing the current 20 weeks of paid parental leave to 26 weeks by July 2026.
The Paid Parental Leave Amendment (More Support for Working Families) Bill 2023 seeks to provide each parent four weeks of reserved leave starting July 2026, upon full implementation of the scheme. Pending the passage of the bill, the government will add two weeks of paid parental leave each year starting July 1, 2024, with a total of six weeks added by July 2026.
The bill also introduces concurrent leave, allowing both parents to take leave for four weeks at the same time if they choose to.
“We know that good women’s policy is also good economic policy, and this investment will promote parenting as an equal partnership while boosting the economy,” Minister for Women Katy Gallagher said. “This is all about making sure that every family has more choice and better support.”
The proposed amendment takes into consideration the recommendations from the Women’s Economic Equality Taskforce and reflects the largest investment in Paid Parental Leave since the scheme’s introduction in 2011.
The government expects 180,000 families each year to benefit from the proposed changes, at a cost of $1.2 billion (US$758 million) from 2022-23 to 2026-27.
“Not only will this help families to better balance work and care, but it will also support participation and productivity over the longer term, providing a dividend for the Australian economy,” Minister for Social Services Amanda Rishworth said.
Businesses, Trade Unions Support Additional Paid Parental Leave
The Business Council of Australia (BCA) and the Australian Council of Trade Unions (ACTU) both expressed support for the proposed additional paid parental leave.The BCA noted that many of its members are already offering up to six months of leave to either parent and removed the requirement for the claimant to be the primary carer.
“These progressive policies are paying dividends in the hunt for global talent and equalising the role of both parents,” BCA CEO Bran Black said.
“Inflexibility in paid parental leave is a barrier to women participating fully in the economy. Removing all barriers in Australia could see an extra 461,000 full-time people enter the workforce and an extra $128 billion a year added to the economy.”
The ACTU said that increasing the paid parental leave to 26 weeks is a significant improvement, noting that Australia’s current scheme lowers women’s workforce participation and reduces women’s income during parenthood.
“Australia had the second-worst paid parental leave scheme in the developed world, which is a direct driver of women’s lower workforce participation and unequal caring responsibility and causing women’s earnings to fall by 55 percent on average in the first five years of parenthood,” ACTU President Michele O'Neil said, while noting that the government has to do more in terms of providing paid parental leave.
“There is still more to be done to improve and expand Australia’s PPL scheme. Including the extending of the scheme to 52 weeks, increasing the rate of pay from its low level of the national minimum wage, and paying superannuation on parental leave.
“These are all changes necessary to increase women’s workforce participation, facilitate more equal sharing of caring responsibilities between men and women, and close the gender pay gap.”
