“And we know that people having families is good for the economy as well,and good for individuals.
“Labor will always do what we can to provide more support but I’ll have more to say about that over the coming period.”
‘We’ve said consistently that paid parental leave is something that ... we would like to do more[about].’
PM Anthony Albanese
Greens and crossbench MPs have been challenging the federal government to take a stand on economic change for women by offering a more generous scheme so new parents have more help to balance work and family.
Grattan Institute chief executive Danielle Wood,who delivered a keynote speech to the government’s jobs and skills summit in September,has argued for more assistance on the grounds it would increase workforce participation by women.
“At a cost of $600 million a year,more gender-equal parental leave could boost GDP by $900 million a year thanks to increased workforce participation by mothers,” Wood said last year.
A bill put forward by the Greens would overhaul the system to give six weeks of leave to one parent,six to the other and a further 14 weeks to be used however the family decides – offering 26 weeks in total.
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Under the Greens’ plan,single parents would be able to take the full 26 weeks and the leave would be paid at replacement wage,capped at $100,000 a year,rather than at the minimum wage.
The Greens’ plan would cost $6.4 billion over the next four years,according to a costing by the Parliamentary Budget Office.
The cost of the Labor pledge is expected to be smaller in the next four years,however,because the government is looking at starting the more generous scheme in 2026,the final year of the official four-year forecasts in the budget.
Because the government proposal would keep the terms of the existing 18-week scheme and extend it to 26 weeks,the additional cost could be similar to the $600 million annual estimate from the Grattan Institute.
While the government has previously said it was looking at ways to make the current scheme more flexible,Albanese had been urged to take a firmer stand on the calls outlined at the jobs summit.
“If a Labor government fails to deliver,I think you’ll see an increase in votes for minor parties and independents because,at the end of the day,I think the Australian people are tired of waiting,” independent MP Zali Steggall said last month.
The move on paid parental leave would add to the debate about adding new spending in the federal budget after Treasurer Jim Chalmers has warned about the pressure coming from programs including health,aged care,the National Disability Insurance Scheme and defence.