80,000 mothers to lose in leave changes
Nearly 80,000 new mums will lose out if the Abbott Government can persuade parliament to back its plan to end “double dipping” of paid parental leave.
From July 1 2016, the taxpayer-funded scheme will only top up employer payments to $11,500, the maximum payable.
At the moment, new parents can use whatever leave their employer provides plus access to the government scheme of 18 weeks at the minimum wage.
“It’s a matter of making sure that the opportunity available to all women is the same,” Finance Minister Mathias Cormann told ABC radio on Monday.
“It’s an equity and fairness measure, it’s an integrity measure.”
You might like
About 79,000 new mothers would lose the government-funded paid parental leave either completely or partially under the changes.
Another 90,000 will not be affected because their employer doesn’t offer paid maternity leave.
The measure is expected to save the budget $1 billion over four years.
Cormann says the government doesn’t regard the existing Labor-designed scheme as one that should complement workplace offerings.
Stay informed, daily
Nor does he believe employers will diminish leave arrangements if the government makes its change.
But opposition families spokeswoman Jenny Macklin, the architect of the existing scheme, says employers already have indicated their schemes will be slashed.
“The cut will not even be delivered because employers will reduce their paid parental leave,” she told Sky News.
“It is incredibly short-sighted.”
Independent senator Nick Xenophon said many employers had factored in the government’s scheme when deciding what leave to offer new mothers.
“You might want to allow a transitional period to allow those companies not to experience a quick, sharp shock,” he said.
– AAP
Want to see more stories from InDaily SA in your Google search results?
- Click here to set InDaily SA as a preferred source.
- Tick the box next to "InDaily SA". That's it.
