Jodie Campbell (Bass, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Families, Housing, Community Services and Indigenous Affairs. How will the government’s paid parental scheme support families and prepare Australia for the future, and how has the scheme been received?

Jenny Macklin (Jagajaga, Australian Labor Party, Minister for Families, Housing, Community Services and Indigenous Affairs) Share this | Link to this | Hansard source

I would particularly like to thank the member for Bass for her question on paid parental leave. She has been a great activist for some time for parents to get access to this very important scheme. Today is a very significant day. I just say to the Treasurer that Tuesday night was a very significant occasion for Australian parents. It was a very significant day for Australian parents. For the first time Australia is going to have a paid parental leave scheme. Australian parents will mark this day as a crucial day in our history. It means that for the first time Australian parents will be able to stay home with their newborn babies full time—to spend time with their babies in those early months of a little child’s life. It will give parents the options that they have been looking for so that they can better balance their work and family lives. Of course, it will also help to prepare Australia for the ageing population by encouraging more women to stay connected to their workplaces.

The scheme will provide 18 weeks of parental leave at the federal minimum wage, which is currently around $543 a week. This is a long-overdue reform and means that Australia will finally catch up with the rest of the developed world. The scheme will commence on 1 January 2011 to give employers, in particular, time to prepare. Parents can choose between receiving the paid parental leave arrangements or the baby bonus and family tax benefit part B, depending on what suits their particular circumstances. Mothers who are not in the workforce will continue to be eligible for the baby bonus and family tax benefits part A and part B. I am pleased to say to the House that many employers and their organisations have welcomed this historic announcement. I will quote just a few. The Council of Small Business Organisations of Australia said:

What this scheme means is that life is going to be easier for a lot of people.

Western Australia’s Chamber of Commerce and Industry said:

This would improve workforce participation …

The Aldi Group—just to name one employer—said:

Our employees are our greatest asset and an additional cash boost from the government on top of what we already offer will be a great help to new parents.

This measure—this major reform in this year’s budget—will help to prepare Australia for the future. I am pleased to note that those opposite have finally worked out that Australia does need this sort of strong action—a new paid parental leave scheme—to deal with the ageing of our population. I have already mentioned one contribution form the member for Warringah. He has certainly been out and about recently, but this latest admission from the member for Warringah was rather breathtaking. He said this week, just after we announced the paid parental leave scheme, that the former government did not do enough to support new parents. The member for Warringah said on Tuesday:

But I have to say that on this issue I do think that the former government could have done more, should have gone further.

Australian families could not agree more.