Emily Chapman Laing
Families now have greater flexibility in how they use their paid parental leave.
A legislative bill aiming to enhance the Paid Parental Leave Scheme passed the Lower House on Thursday 9 February.
The bill will now be presented by the Community Affairs Legislation Committee to the Senate for deliberation.
The report is expected to be presented on 24 February 2023.
If it passes, changes are expected to begin 1 July.
These updates will extend the leave period from 90 days (18 weeks) to 100 days (20 weeks).
The total Parental Leave Pay (PLP) available to families will then increase in increments of two weeks each July, culminating in 26 weeks of leave by 2026.
Holt MP Cassandra Fernando is excited about the changes.
“The Albanese Labor Government’s paid parental leave program is a significant step forward in supporting working families,” she said.
“This policy will allow parents to take time off work without having to worry about financial stress, which is critical in those early months of parenthood.”
Leave payments continue to be based on the national minimum wage of $772.60 per week.
Currently, PLP provides primary carers with up to 18 weeks of payments, while Dad and Partner Pay (DAPP) provides eligible working fathers or partners with up to two weeks of payments.
Eligibility is subject to an income test, where claimants cannot exceed an annual adjusted taxable income greater than $151,350.
Changes to the scheme will combine PLP and DAPP and allow eligible working parents to share up to 20 weeks of payments however they see fit.
The new measures also expand the income threshold to $350,000 per year.
This new legislation will cost $346.1 million over five years.
The Albanese Labor Government has introduced the legislation in the hope that the updated measures will better reflect the needs of today’s families, promoting equality between mothers and fathers as well as allowing families to decide for themselves how best to use their Paid Parental Leave without the constraints of primary and secondary carer labels.
The current Paid Parental Leave Scheme has been criticised as outdated, reinforcing antiquated gender roles and being unfair to women who hold the primary income in their households.
At present, families are treated differently based on which carer has a higher income.
If a birth mother’s income falls beneath the income threshold of $151,350, and her partner earns more, PLP can be accessed by the mother.
However, if the mother is the primary income earner with a partner beneath the income threshold, the partner cannot access the same support.
This effectively punishes women for being higher income earners and compromises their ability to share the care load with their partner.
Advocates for the bill also propose these changes will encourage fathers to play a more active part in their role as carer, allowing them the flexibility to share the paid leave with their partners.
The Holt electorate is one of the youngest federal electorates in the state.
Local MP Cassandra Fernando anticipates that the PLP changes will have a positive impact on families in her electorate.
“Our community is a home for people who strive toward ensuring that their children have a better life than they did,” Fernando said.
“The improvements to the Paid Parental Leave Scheme will provide significant relief to these families in Holt.”
