House debates
Thursday, 9 February 2023
Bills
Paid Parental Leave Amendment (Improvements for Families and Gender Equality) Bill 2022; Second Reading
10:32 am
Justine Elliot (Richmond, Australian Labor Party, Assistant Minister for Social Services) Share this | Hansard source
Can I start by acknowledging the contribution from the member for Swan. That was absolutely outstanding. You are making an incredible difference here in this parliament, and I acknowledge, particularly, your pride about this bill. I think we all share your pride in the historic nature of the bill. I, too, am very proud to speak on the Paid Parental Leave Amendment (Improvements for Families and Gender Equality) Bill 2022.
This bill implements the first tranche of the government's paid parental leave changes that were announced in the budget. It's a bill we are incredibly proud of because paid parental leave is an issue that has such importance to the Albanese Labor government. The bill is a response to the many community concerns expressed over a long period of time and to the many advocates for having policies like this in the place. It was part of the centrepiece of our first budget because we understand how important this issue is.
I am very, very proud to be a part of a government that recognises the value of a policy that is not only good for women but is good for men, good for families and really good for the economy. I am very proud to be a part of a Labor government that has always recognised this and has seen the value of paid parental leave and providing that assistance. We saw its value from the very first introduction of similar policies such as the maternity allowance, which was introduced in 1912 by the Fisher Labor government, reintroduced in 1943 by the Curtin Labor government and introduced again, in 1996, by the Keating Labor government. Then there was the Paid Parental Leave Act 2010, introduced by the Gillard Labor government. For those of us here it was indeed a very proud moment to have that introduced, because it was an issue that the community had raised on so many occasions. Here we are now today in 2023 with the introduction of the Paid Parental Leave Amendment Bill by the Albanese Labor government. This bill really does signify the most significant step to improve the scheme since its establishment in 2011.
Our policies may have evolved over time, but history paints a very, very clear picture. It is Labor governments who have always been on the side of Australian families and who have provided policies like this which increase participation and also are beneficial to our economy. Indeed, with this bill today we very proudly continue that tradition.
The bill reflects the government's commitment to improving the lives of working families, supporting better outcomes for children and, very importantly, advancing women's economic equality. Around 181,000 families will benefit from the changes in this bill, including around 4,300 parents who will gain access—who would have been ineligible under the current scheme—so it certainly opens it up so much more. And with this critical reform, the government is implementing paid parental leave conditions that reflect the needs of modern families, as we have heard from many speakers here today. We are reflecting those needs of contemporary families and their wishes in terms of accessing that leave.
From July 2023 the bill delivers six very important key changes. Firstly, it combines the two existing payments into a single 20-week scheme. Secondly, it reserves a portion of the scheme for each parent to support them both to take time off work after the birth or adoption. Thirdly, it makes it easier for both parents to access the payment by removing the notion of primary and secondary carers. It's so important to do that for parents who, of course, are equally contributing to their children's upbringing. Fourthly, it expands access by introducing a $350,000 family income test, under which people can qualify if they don't actually meet the $156,647 individual income test. Fifthly, it increases flexibility for parents to choose how they take paid parental leave days and transition back to work—giving them that important choice. Sixthly, it allows eligible fathers and partners to access the payment irrespective of whether the mother or birth parent meets the income test or residency requirements.
The bill's changes to the threshold limit are very important. We know that, under the current scheme, when a birth mother earns under the $151,350 per year threshold and a partner earns more, the mother can access paid parental leave. However, if the mother earns more than the threshold and her partner less, the partner is not able to access the paid parental leave scheme. Clearly, that's not a good situation. Between the 2010 and 2017 financial years, the number of women with taxable incomes of more than $150,000 has more than doubled. Indeed, in my own electorate of Richmond, since the 2011 census to the most recent 2021 census, there has been a more than 350 per cent increase in the number of women earning more than $150,000—a huge increase in that time. So it's clear that the current scheme had to be changed and it needed reform to adapt to this growing trend. We've recognised this shift, and so this bill will introduce a much-needed family income limit of $350,000, operating alongside the current individual limit. With these changes, a difference in earnings according to something like gender will not wrongly limit a couple's access to financial support. We need to look at a couple as a unit, working together, earning together for the betterment of their family, and that's exactly what this bill does.
We need to have added flexibility. We know that over the last few years, particularly through the pandemic and all of its challenges, we've heard so many Australians talk about the need for flexibility in their everyday lives. We recognise this, and with this bill we are ensuring that paid parental leave is flexible to reflect those modern needs. The new scheme allows claimants to take the payment in multiple blocks as small as a day at a time within two years of the birth or adoption, and it removes the requirement to not return to work in order to be eligible. Very importantly too, it removes the notion of primary and secondary carers. It's really important to do that because it allows all eligible parents to claim the payment. This indeed reflects the needs and reality of our modern society and the shift in community attitudes. It really is indicative of this government and how much we understand the needs of Australian families today. We reflect that in this House, which we should be doing as a representation of the people.
With the move to a single 20-week scheme, this bill allows fathers and partners to access the government payment at the same time as their employer leave. Under the current scheme, this is available to mothers; however, fathers are required to be on unpaid leave in order to receive the payment. Fixing this inequality removes the financial disincentive for fathers and partners to access the scheme and take time off work to care for a child. Whether you are a mother or a father caring for your child, gender should absolutely not affect your access to parental leave payments. This is one of so many measures that this government has very proudly brought in, particularly when it comes to gender equality and increasing women's participation, which, of course, is much better for our economy as well. We're doing that through so many measures, particularly in terms of ensuring there are better wages and conditions, through our cheaper childcare initiatives and our 10 days paid domestic violence leave. We are absolutely committed to making sure that we do have that gender equality in place.
On top of that, last year, along with the minister, we launched the National Plan to End Violence against Women and Children. We outlined our shared vision to end gender based violence within one generation, and we are very proud of that plan. It's our strong commitment to 10 years of sustained action to really work towards eliminating all forms of gender based violence. A major component of that plan is taking a whole-of-government approach to addressing the root causes of domestic and family violence, one of those being gender inequality. This is one of the many initiatives that our government has pursued in terms of addressing gender equality, and this bill today does exactly that. It really is so important.
The changes that have come in this bill—the first stage; the government's reforms—really lay the foundation for our strong commitment to expanding paid parental leave. The government will bring forward more legislation, which will progressively increase the scheme by six weeks until it reaches 26 weeks in 2026—a full six months of leave. This is the largest expansion of paid parental leave since Labor established the scheme in 2011.
As I've said, the changes in this bill send a clear message that we treat parenting as an equal partnership that supports gender equality. We value men as carers, and we want to see that reinforced in workplaces, in our communities and in community attitudes right across the country. The government's paid parental leave reform is incredibly good for parents, good for kids, good for employers and, very importantly too, very good for our economy in terms of increasing workforce participation.
As a mother of two now adult children, I am absolutely proud of how far we have come as a nation and how so much has changed in that time, particularly because of the actions of Labor governments. I'm very, very proud to be speaking on a bill that will really assist many families to navigate an ever-changing world. It will indeed help them in terms of their family and financial situations and their capacity to be able to work as well. I'm really proud to be part of a government that does value gender equality as a priority. I would like to acknowledge that this government has a strong commitment to it. In terms of this bill, I certainly want to note and acknowledge the wonderful Minister for Social Services for introducing this bill. It is indeed a very proud, historic moment for all of us in the Albanese Labor government. I commend the bill to the House.
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