herBusiness - The Australian Businesswomen's Network Blog
herBusiness - The Australian Businesswomen's Network Blog

PAID PARENTAL LEAVE – How Much and Who Pays?

By Amy Lyden

9 February 2012 | No Comments

working mum with bottle and briefcaseWith the Coalition introducing amendments to the Paid Parental Leave scheme (PPL) this week, the Minister for Small Business Mark Arbib and Minister for Families, Community Services and Indigenous Affairs, Jenny Macklin, put out a media release this week condemning the proposed PPL changes.

Senator Arbib describes the PPL as a tax on business that will have a detrimental affect on small businesses, particularly small retailers.

Before we look at the Coalition’s proposed PPL, let’s review the current PPL which came into place January 2011:

  • 18 weeks paid parental leave at federal minimum wage (approx. $570/week)
  • no superannuation paid
  • must have worked for a least 10 of the 13 months prior to birth or adoption of child
  • must have worked for at least 330 hours in that 10 month period with no more than an eight week gap between two consecutive working days
  • fully funded by the government
  • administered by businesses (meaning that businesses will pay directly to PPL recipient)

The Coalition’s gripe with the existing scheme is that it is a burden to businesses to administer.

Also, 18 weeks at minimum wage and no superannuation (approx. $10,000) is not going to make a big difference to many families.

Let’s now examine the Coalition’s proposed PPL, which was released in 2010:

  • 26 weeks paid parental leave at FULL salary up to $150,000 per annum
  • including superannuation of 9%
  • utilising the same work test and eligibility conditions as the current PPL
  • be funded by a 1.5% levy on companies with taxable’s incomes OVER $5 million
  • be paid and administered by the Family Assistance Office (not by the employer as is currently in place with the government’s PPL)

This is certainly a more generous scheme, with less red tape for businesses. Businesses with a taxable income over $5 million will fund the scheme. Smaller businesses will not be affected.

Yes, this PPL scheme will cost more.

But it will help support families better than the existing paid parental leave scheme.

It also acknowledges the importance of superannuation, which for many women is just simply not enough to retire on.

The bottom line is that if we want more women to participate in Australia’s workforce, we MUST provide workable solutions to help them manage as they have and adopt children. This WILL cost money. But the overall benefits to Australia economically and socially will by far outweigh the dollars spent.

What do you think?

Amy Lyden

Blogger

Amy Lyden

Amy Lyden

An entrepreneur and specialist in ecommerce and online strategy, Amy has had over 13 years of practical experience in these areas. Launching her first website in 1998 Amy was at the forefront of an online revolution without even realising it. Within a year this site became and remains today a #1 ra...


Read more about Amy Lyden

No Comments »

No comments yet.


RSS feed for comments on this post.

Leave a Comment

Related Content

Older Women Matter: Harnessing the Talents of Australia’s Older Female Workforce

By Susan Wareham McGrath

Diversity Council Australia (DCA) research released today found that women aged 45 years plus represent a sizeable and growing segment of the labour force - but Australian organisations are failing to fully harness their skills and talents. According to Nareen Young, CEO of the Diversity Council of Australia, there is a strong business case for [...]

Read More

Dell Women’s Entrepreneur Network Hosts “Women on Boards” — Supporting Women to Move into Board Positions

By The Australian Businesswomen's Network

The topic of Australian women in board positions has created huge discussion over the last few years, and has promoted the Dell Women’s Entrepreneur Network to host an event answering some of the questions women have about moving into a board position or creating their own board of directors. The Dell Women’s Entrepreneur Network (DWEN) [...]

Read More

Are Australian Workplaces Still Sexist? Lessons from Julia Gillard

By Nerida Gill

“Our political leaders on sexism ... have got really high standards,” Business Council of Australia president Tony Shepherd told The Australian Financial Review in October 2012. “I have seen no evidence of sexism in any of our political leaders on whatever side.” Really? One wonders how the head of the peak body that represents 100 [...]

Read More

Niche Social Networks and the Implications for Marketers - A look at Tapestry.net

Interview with Andrew Dowling

Andrew Dowling is the Founder and CEO of niche social network Tapestry, a dynamic Australian technology start-up that connects seniors to their family members.   In this interview, Andrew from Tapestry.net tells us: about his niche social network, Tapestry whether we really need another social network how he raised $600k in "angel funding" why we [...]

Read More

The Glass Cliff Claims Another Victim – Was Julia Gillard’s Fall From Grace Inevitable?

By Susan Wareham McGrath

Julia Gillard will go down in history for breaking through the political glass ceiling to become Australia’s first female Prime Minister. Image © www.news.com.au But was her fall from grace not only inevitable but predictable? Yes, according to Professors Michelle Ryan and Alex Haslam of University of Exeter, United Kingdom, who coined the term “the glass cliff” in [...]

Read More