Power to the parents

Leave choice reforms

FOR the first time, new parents will be in control of how they take paid parental leave.

Until now, primary carers – mostly women – have been forced to take Parental Leave Pay as one block of 18 weeks.

But now, a new mum or dad could take, for example, 12 weeks after giving birth then take the balance later.

Minister for Women Kelly O’Dwyer will announce the “game-changing” reform today with the policy to take effect in 2020.

The reform is the centrepiece of O’Dwyer’s $109 million Women’s Economic Security Statement at the National Press Club in Canberra.

The reform involves parents being able to take their 18-week paid parental leave entitlement in an initial block of 12-weeks in the first year of their child’s life and a further six weeks how they choose before their child turns two.

This could include taking one day a week of leave for 30 weeks, meaning whoever is the primary carer could work a four-day week and still be paid for the fifth day at home with their kids via the government entitlement; saving on childcare fees and other caring-related expenses when they may need it most.

Or it may be six periods of one-week of leave over the course of a year or any con- figuration that suits their individual circumstances.

The new policy is part of a strategy to target cost of living pressures for parents, ahead of a general election in the first half of next year.

The new flexible arrangements will help small business to better co-ordinate around parental leave for their staff.

“This is a real game-changer for parents and particularly for small businesses,” Ms O’Dwyer said.

“Thousands of Australian parents will be better off under our changes.

Currently, parents of a newborn or newly adopted child who access the 18-week Parental Leave Pay are only able to do so in one concurrent block within the first year of their child’s life.

The benefit is paid at minimum wage totalling $719.35 per week before tax and is eligible to mothers or fathers who are the primary carer and have earned less than $150,000 individually over the course of the financial year immediately prior to receiving the benefit provided they meet the work test — which the government will also amend.

The new policy would need to be introduced to parliament as legislation and will begin on 1 July 2020 — meaning the Coalition will need to be reelected and pass it through both houses to see it become a reality.