Paid parental leave in Australia may soon be a reality

By Dr. Ananya Mandal, MDJun 1 2010

Australia’s Liberal opposition has allowed the Rudd government to implement the paid parental leave scheme with effect from 1^st January 2011. As per this scheme both parents will get an 18 weeks' paid leave at the minimum wage rate of $543 a week. At present Australia is one of the only two OECD countries that does not have a paid parental scheme.

However the opposition has also warned that amendments might be made to the legislation once it comes to power. Spokeswoman Sharman Stone, on Wednesday said “We'll have to let it pass (the Senate) so that there's something starting on the first of January…But we commit to the Australian people that we won't let such a poor scheme remain for working families.” She explained that this scheme allowed only a minimum wage which was not enough and on the other hand it could seriously burden small businesses. “What we're fearful of is that the small businesses who are being asked to be the paymasters for Labor's scheme may start to discriminate against women,” she said adding that these small businesses will look upon women as “a major administrative burden.” Earlier Opposition Leader Tony Abbott had put forth his own scheme wherein women would receive up to $75,000 for 26 weeks, depending on their actual wage, with a wage ceiling of up to $150,000.

All were not opposed to the scheme. Families Minister Jenny Macklin feels that this legislation after approval of the Senate would be a “landmark economic and social reform for Australian families and for Australian businesses.” She enthused that “It's practical, fully costed and will be fully funded out of consolidated revenue, not by imposing a new tax on Australian business like the new tax proposed by the opposition.” Queensland MP Bob Katter recalled that a whole generation of women who never had the benefits of this kind of a scheme chose their career over their children. “I know them (the women) all. They are the same age that I am ... mid 60s or early 60s, and they pursued their career, and now they are old, embittered, lonely people…They have no one to love and no one to love them,” he rued. Liberal leader Wilson Tuckey chose to see it in a different light. “…And to ensure that those (women) who can attract the higher wage levels and (because of) whose genetic structure, if you like - I'll probably get criticized for this remark - whose children are more likely to be brighter,” Mr. Tuckey said.