Maternity leave gets Budget boostPosted 3 hours 21 minutes ago
Updated 1 hour 48 minutes ago
The scheme could come into effect on July 1. (Getty Images: Ian Waldie)
Federal Treasurer Wayne Swan has confirmed Tuesday'sBudget will fund a paid parental leave scheme, due to begin in January2011.
Mr Swan has told Channel Nine the Government-funded scheme will goto "those who need it most" and said families where the primary carerearns over $150,000 a year will be ineligible.
In a report delivered to the Government in February, theProductivity Commission estimated a universal scheme would cost $450million.
Mr Swan had already admitted the Government had to rearrange itspriorities in this year's Budget as the recession bites and tax revenuedeclines.
"We think it's a very, very important social and economic reform," he said.
"It goes to the core of working family life in this country and thefact that we must value the relationship between a mum and a newbornchild.
"So we think a system of paid parental leave is very important."
The scheme must be introduced in a measured and responsible way, he said, taking into account the global recession.
"The early years of a child's life are so important to that child's prospects in later life," he said.
"The quality of family life is impacted on by the quality of worklife. We've got to get that balance between work and family life andpaid parental leave is an essential reform.
"We are one of only two countries in the western world that doesn't have paid parental leave."
Mr Swan says the leave will be paid for 18 weeks at the federal minimum wage of about $544 per week.
"This will be of particular benefit to low and middle-incomefamilies, low and middle income mums, who've been left out in the coldfor so long," he said.
"Nothing could be more important to a prosperous economy, but also a healthy society, than a measure like this."
"More spin"But speaking to ABC1's Insiders program, Opposition treasuryspokesman Joe Hockey described Mr Swan's announcement as "more spin".
"One of the things that happened over the last 10 years was weactually saw a significant increase in the number of parents whoreceive paid maternity leave in the workforce," he said.
"That was primarily because we were in an age of prosperity andbecause there was a shortage of skills, employers had to do the rightthing. Even as recently as last week BHP announced a very generousscheme."
"My fear about this being stretched out to 2011 is that theemployers that want to continue, or who do implement maternity schemeswill simply pull up stumps because now they know that the RuddGovernment, with taxpayers money, is going to step into the breach."
He says the Government must ensure stay-at-home mothers are not disadvantaged by the introduction of the scheme.
"The baby bonus which we introduced which most other countries donot have was something that was in lieu of paid maternity leave,because it goes to stay-at-home mums as well as the mums in theworkforce," he said.
Mr Hockey says Tuesday's Budget is shaping up to be "a Budget of contradictions".
"Great policy, but who's going to pay for it? Who is going to pay for all this at the end of the day?" he said.
"This says everything about their Budget. One the one hand they'rehanding out cheques for $900 ... and on the other they're saying it'sgoing to be a tough Budget.
"On the one hand they're saying we've got to have sustainableBudgets into the future, now they're putting promises on thenever-never."
Fairfax reported earlier today the move is designed to "pressure theOpposition to pass a range of tough savings measures" like theintroduction of a means test on private health insurance, cuts tosuperannuation tax breaks and cuts to the Medicare safety net. |