House debates

Monday, 24 February 2020

Bills

Paid Parental Leave Amendment (Flexibility Measures) Bill 2020; Second Reading

6:57 pm

Photo of Fiona MartinFiona Martin (Reid, Liberal Party) Share this | Hansard source

Today I rise in support of the Paid Parental Leave Amendment (Flexibility Measures) Bill 2020. Our government understands the important role that paid parental leave serves in encouraging workforce participation and supporting the wellbeing of families. This bill introduces greater flexibility to support working parents, particularly women, including self-employed women, casual and seasonal workers, and small-business owners who cannot afford to leave their businesses or workplaces for 18 consecutive weeks. Currently, parental leave pay can only be taken as a continuous 18-week block within the first 12 months after the birth or adoption of a child. From 1 July 2020, families will be able to split their parental leave pay into blocks over a two-year period, with periods of work in-between. These amendments give families, and particularly mothers, much more flexibility so that the scheme can best fit their family's needs and the transition back to the workforce. Parents will be able to use an initial 12-week block of their entitlement at any time within the first 12 months after the birth or adoption of their child without needing to return to work during this initial block. This gives parents a period of recuperation and bonding in the months immediately following the birth or adoption. Parents will be able to take their remaining entitlement of up to six weeks any time before their child turns two years old, and they can return to work at any time during this period. This totals the 18 weeks currently allowed, but with much greater flexibility. These amendments will have a positive impact on families across Australia, including in my electorate of Reid.

This greater flexibility is especially important in supporting women who wish to return to work. This amendment will be beneficial particularly to casual and seasonal workers, or workers who have large breaks in employment, such as teachers, nurses and academics. For many small business owners and self-employed women, 18 weeks is a significant amount of time to be away from work. Under these changes, mothers will be able to take an initial 12 weeks of paid parental leave before returning to run their businesses. They will then be able to take the remaining six weeks of their entitlement when they choose, at a time that suits their personal and business needs. For example, over the Christmas and new year period, if their business is quiet, they may be able to take that time then. Some mothers may choose to use their paid parental leave to support a part-time return to work—for example, after returning to work following an initial period of parental leave—and parents could negotiate with their employers to work a four-day week and receive a day of paid parental leave for the fifth day for up to 30 weeks.

The increased flexibility will make it much easier for mothers who are eligible for paid parental leave to transfer their entitlement to an eligible partner who takes on the role of primary carer where it suits the family circumstances. It is expected around 4,000 parents will choose to take their paid parental leave flexibly each year, which means 4,000 families on an annual basis will get a better experience as parents.

While the structure of the modern Australian family cannot be categorised in any single framework, the value of the family unit remains central to the wellbeing of society. Supporting Australian families by empowering them through choice and flexibility strengthens the fabric of Australia as a whole. By making the Paid Parental Leave scheme more flexible, families have more choices. Parents can tailor their payments to their family's needs and circumstances and make the choice that will have the best financial and social outcome for them. Men who are the secondary carer can take parental leave and share a more balanced caring role in their family. The amendments through this bill reflect and support the needs of the modern family in Australia. This is a step in the right direction for modernising paid parental leave payments for Australian families, and I commend the bill to the House.

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