House debates
Thursday, 9 February 2023
Bills
Paid Parental Leave Amendment (Improvements for Families and Gender Equality) Bill 2022; Second Reading
10:23 am
Zaneta Mascarenhas (Swan, Australian Labor Party) Share this | Link to this | Hansard source
One of the biggest considerations I took before I put my hand up and decided to run for the seat of Swan was whether I could do the job to the highest standard whilst being there for my two young children. It's a hard decision to make, and one that many, particularly Western Australian candidates, consider during their nomination progress. It's something we all think about when we have children. We ask ourselves questions like: how can we balance our careers and our incomes and remain present in the lives of our children? This is why I rise today to speak in favour of this bill on behalf of parents and carers and future parents and carers in my electorate. I believe that parents shouldn't forgo their careers just to be present in their child's early years.
I took paid parental leave when I had my children. I took it at that time so I could be there for Lincoln for that important period. At four months old, Lincoln was still breastfeeding, and he certainly wasn't walking and talking. But the economic and career realities that working parents face meant that I would later return to work. This is something that hangs heavily on the minds of lead parents when they make the decision to return to work. The truth is that some parents don't return to work and instead stay at home, often at the expense of their careers.
Typically, it's often mothers and female carers who make the decision to leave their job, foregoing income, superannuation and career experience. This is one of the reasons why the pay gap exists. This issue is a cost that deprives our nation of talent. It means that women, on average, are retiring with less superannuation; it means that women, on average, are earning less than their male counterparts in the same career. It's also the reason why we see that some women miss out on promotions.
Parenting is not the sole responsibility of the mother. This bill recognises this fact. This bill gives families access to payment, gives parents more flexibility in how they'll take leave and encourages parents to share improved gender equality. My husband and I use the term 'lead parenting'. This is because you can change who is looking after the children, but it's not a thing that needs to be consistent. On some days, like today, Sam's in charge of parental responsibilities as I focus on my work; on other days, it's his. No-one should feel that they have to be defined as the primary or the secondary carrier in order to receive paid parental leave. In a child's eye, there isn't really a primary or a secondary carer; it's mum or dad, or maybe only mum or only dad, or maybe mum and mum or dad and dad.
It's useful to point out that the first version of this bill was rather heteronormative. Modern families look different, including the families of Swan, which reminds me of a fabulous gay couple in the electorate of Swan, Lana Snook and former Olympic gold medallist Toni Cronk. They're people who have shown the different models that exist, and that's something that this bill recognises.
I don't want to look at this bill only from the perspective of lead parents and women getting greater flexibility; I also want to look at it from the perspective of providing fathers and male carers greater choice to be in their children's lives and balance their careers. Kids love having their dads around. Last year, I met with the Fathering Project, which is doing great work empowering dads to be the best parents they can be. We spoke about how their work found that some of the children whose dads were male MPs felt like they were a second priority.
Absent and busy fathers are a significant social issue, and it inadvertently affects the lives of Australian children and young people. Whether it's people or blokes working FIFO, long hours in the office or sitting in this chamber, economic and gender based expectations of men sometimes prevents them from being as present as they would like to be in their children's lives. Giving fathers and male carers a chance to be there for the first moments of their child's life allows for that bond to be built. That's something that has a lasting effect and is important, particularly in the earlier years.
The early years are known as some of the most formative years in a child's life. It's often said that it's the first 900 days that's really critical for a child, and for both parents to be present is really important. When dads are involved in a child's early years, it sets them up to have a successful relationship for the rest of their childhood and teenage years. It's also something that helps them to be well-adjusted adults.
There's something particularly warming and historic about standing in this chamber and talking about parental leave in relation to making it more accessible for male parents. I want to point out that it was the Labor Party that introduced this in the first instance. It's also the Labor Party that's improving this policy. One of the reasons for that is that the Labor Party has a better representation of what Australian society looks like. The Labor Party is so diverse on this side of the chamber, and that relates not only to women but also to men who are very present in the lives of their children. I see that this bill is a structural change that will ensure dads will be more present. I'm very lucky, in my family, that my children's grandfather is very hands-on and very present. The thing I can see, because my husband, Sam, has had the opportunity to be at home during their earlier years, is that my children have a strong bond with their father, and that is something that they will have for the rest of their lives. This bill will ensure that more fathers will be there.
I also want to talk about the flexibility of this bill in the way that it's taken. I remember being in my electorate of Swan, at the pool, speaking to a mother there called Louise, who was pregnant and talking about her baby that was going to be born. She was very excited to hear about this bill. The thing that she particularly liked was the flexibility about which parent actually takes this leave. She said that for her first child's birth, they didn't have as much flexibility, and from a family circumstance perspective it was harder to make sure that they realised the full benefits, so this was something that she was very excited about. We also talked about our cheaper childcare bill and how that would be helpful when she returned to work.
The Labor Party is very supportive of women, and this bill does that. We want to make sure that dads are present, and that we have an understanding of what modern families look like—they're not always heterosexual couples. This is a wonderful time for children and their parents. The truth is that the Labor Party has always been at the forefront of this. In WA, Senator Pat Giles was a woman who had worked negotiating union agreements to make sure that people had access to maternity leave, which was, initially, one year of leave without pay, to make sure that women were guaranteed their jobs. They were legislative things that happened in the 1980s. That was almost 50 years ago. The truth is that we as a society are continuing to improve what we're doing. We are continuing to make sure that we think about the future and make sure that children, like the children we see up there in the gallery, have mums and dads and lead parents that are present in their lives.
10:32 am
Justine Elliot (Richmond, Australian Labor Party, Assistant Minister for Social Services) Share this | Link to 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.
10:43 am
Amanda Rishworth (Kingston, Australian Labor Party, Minister for Social Services) Share this | Link to this | Hansard source
I would like to sum up by thanking all those who have contributed to the important debate on the Paid Parental Leave Amendment (Improvements for Families and Gender Equality) Bill 2022. As I've said before in this place, improving paid parental leave is a critical nation-building reform. It's critical for families, it's critical for women and it's critical for the economy. Paid parental leave is a proud Labor legacy, and the Albanese government is building and expanding on that legacy. The number of government and non-government members who have spoken on these reforms over the course of the debate shows how important this issue is to so many Australians. At the Jobs and Skills Summit in September, unions and businesses jointly articulated the importance of investing in paid parental leave and the benefits for women's workforce participation and economic growth. The Albanese government listened and took action, committing half a billion dollars in the October budget to improve the scheme and expand it to six months by 2026. We've wasted no time delivering on this commitment.
The changes in this bill modernise paid parental leave so that it is right for the time and right for the future. We know that dads and partners want more time at home with their baby. We know that parents want flexibility in how they choose to take leave and transition back to work. We know that the current eligibility rules are unfair to families where the mother is the higher income earner. This bill fixes those problems. It gives more families access to the payment, provides parents with more flexibility in how they take their leave and encourages them to share care to support gender equality.
From 1 July 2023 the government is improving the paid parental leave scheme by: combining the two existing payments into a single 20-week scheme, reserving two weeks of leave for each parent to support them both to take time off work, making it easier for both parents to access the payment by removing the notion of 'primary' and 'secondary' carers; expanding access to around 3,000 more families each year by introducing a new $350,000 family income test; expanding access to around 1,500 more dads and partners each year through a new, simpler claiming process; and increasing flexibility for parents to choose how they take the government paid leave and transition back to work. It is critical that this bill passes both houses by 9 March to ensure that parents who are expecting to give birth or adopt after 1 July 2023 have the opportunity of pre-claiming three months in advance.
I thank the government and non-government members for their positive engagement with me and my office on this bill. I note that the bill is currently before the Community Affairs Legislation Committee, which will deliver its report by 24 February, ahead of the Senate's consideration in early March. I'd like to thank those senators and the committee secretariat for their work and particularly acknowledge the Chair, Senator Marielle Smith. I'd also like to thank everyone who made a written submission to the inquiry.
I'm very pleased to see the strong support for the bill from a diverse range of employer, union and community groups in their submissions, including UNICEF Australia, the Australian Institute of Family Studies, the Australian Chamber of Commerce and Industry, the Salvation Army, the Australian Human Rights Commission, the Global Institute for Women's Leadership, and Diversity Council Australia. As many of these organisations noted, this bill is a crucial step towards a parental leave scheme that empowers the full and equal participation of women. It implements the first tranche of the government's half-billion-dollar investment in paid parental leave. The reform is being legislated in two stages so that the critical structural changes in the bill can commence as early as possible, with families who are expecting to give birth on or after 1 July 2023 able to pre-claim from late March.
I look forward to bringing another bill to the parliament later this year to legislate the second tranche of the government's reform plan, the expansion of the scheme to 26 weeks, which will commence from 1 July 2024. The Women's Economic Equality Taskforce is currently examining the best model for the expansion to 26 weeks and will provide advice to the government later this year. The changes in this bill and expansion to 26 weeks demonstrates the government's commitment to deliver better outcomes for families and advance women's economic equality. Around 180,000 families each year will benefit from a fairer, more flexible and more generous scheme. The Albanese government is committed to a paid parental leave scheme that supports modern Australian families. That's what this bill delivers, and I commend the bill to the House.
Question agreed to.
Bill read a second time.
Message from the Governor-General recommending appropriation announced.