Paid parental leave

Paid parental leave will be shared and additional funds will be allocated for women’s safety.

New parents will be able to choose to share the 20 weeks of paid parental leave, but overall, they won’t have more time to spend with their babies, according to changes the government plans to introduce within a year.

After a year of discussions about the treatment of women and their safety, the budget unveiled Tuesday contains $2.1 billion in new measures specifically supporting women.

Paid parental leave will be shared and additional funds will be allocated

Paid parental leave will be shared between two partners as part of budget changes planned for next year.

Most of that money – $1.3 billion – is for programs that are the first part of the Commonwealth’s contribution to the new national plan to end violence against women and children.

The government says changes to paid parental leave, which will cost $346.1 million over five years, will give families more choice in who cares for new babies.

Currently, the primary caregiver of a new baby – the vast majority of whom are mothers – can take 18 weeks of paid leave at minimum wage, and their partner can take two weeks.

Under the budget plan, the two plans will be combined and parents will be able to decide how to split the 20 weeks.

The government would also add the possibility of a household means test at $350,000 to access the taxpayer-funded leave, which would allow an additional 2,200 families to use the leave each year. Currently, the arrangement can be used by families whose mothers earn less than $150,000.

Women’s economic security minister Jane Hume said the system should reflect the different circumstances of every Australian family and that the changes would “significantly improve the paid parental leave system.

However, budget documents reveal that the changes will not come until after the election – the intention is to introduce them by March 1, 2023, after consultation.

The benefits of an improved system of paid parental leave have been increasingly touted by economists, businesses, and early childhood and parent advocates.

Federal Budget: Who gets what?

From cost-of-living relief to women’s health, domestic violence support and tax offsets, see who gets what in the 2022-23 federal budget.

Most of those who have submitted proposals advocate a system where each parent can access six weeks of leave, plus an additional 12 weeks to be distributed as they wish, for a total of 24 weeks. They argue that a “take it or leave it” program would encourage more new fathers to take leave, thereby improving women’s economic security.

In 2020-21, fewer than 90,000 fathers used the two-week daddy/partner benefit, representing less than one-third of births that year. Meanwhile, 99.5 percent of those using government paid parental leave and 88 percent of those accessing employer-sponsored plans were women.

A draft of the new national plan to end violence against women and children was released in January, and the final version must be approved by all states and territories by mid-year.

Funding in the new budget is divided among prevention, early intervention, response and recovery programs.

It includes $240 million to continue a program launched last year that provides cash payments and financial assistance of up to $5,000 to women fleeing violence. The program is expected to help 37,500 people over the next three years.

The Safe Places program will be nearly doubled, with 720 new crisis and transitional housing projects, while a program that provides women with safety assessments and home improvements will be significantly expanded with an additional $54.6 million over five years.

Where it goes

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The focus is on recovery and providing support beyond the immediate crisis, including $100 million for national trauma-informed counseling services, which are expected to help about 80,000 people, and family court programs.

“Women and children who have experienced violence must be able to access supports beyond crisis intervention to achieve long-term improvements in health and well-being,” said Women’s Safety Minister Anne Ruston.

Last year, women’s budget measures totaled $3.4 billion. Half of that was spent on changes to child care subsidies, which provided cost relief for parents with two or more dependent children under the age of five.

This budget makes no further changes to child care subsidies, although $19.4 million is provided over five years to develop new services in remote areas and regions.

Labour has promised to increase child care subsidies across the board and make them available to more families if it wins the election. It has not yet announced its policy on paid parental leave.

The government has allocated $330.6 million for women-specific health measures. This includes measures to address endometriosis and pelvic pain announced last week, as well as $23 million for stillbirth and miscarriage support services and autopsies.

Another $106.9 million will go toward promoting women in leadership positions, increasing the number of female apprentices in the trades, improving gender equity reporting and creating more opportunities for women in leadership roles in sports.

Jacqueline Maley cuts through the noise of the federal election campaign with news, views and expert analysis. Sign up for our Australia Votes 2022 newsletter here.


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