House debates

Monday, 27 November 2023

Bills

Paid Parental Leave Amendment (More Support for Working Families) Bill 2023; Second Reading

7:13 pm

Photo of Cassandra FernandoCassandra Fernando (Holt, Australian Labor Party) Share this | Hansard source

Today I advocate before the House the passage of the transformative legislation that is positioned at the core of family welfare, economic progress and gender equity. This bill, the Paid Parental Leave Amendment (More Support for Working Families) Bill 2023, forms the second tranche of the Albanese Labor government's paid parental leave reforms. It follows the legacy of Labor's noteworthy contributions to family welfare—contributions which include Medicare, the Pharmaceutical Benefits Scheme, the National Disability Insurance Scheme and the introduction of paid parental leave in 2011. This bill stands as a testament to our ongoing dedication to shaping a more inclusive, flexible and equitable paid parental leave system.

The Gillard Labor government's introduction of paid parental leave in 2011 marked a historic milestone in Australian social policy. As Prime Minister, Julia Gillard's commitment to the wellbeing of working families was manifested in the establishment of this scheme. The 18-week payment, fully funded by the government, marked a pivotal moment for Australian families.

This visionary reform ensured that parents, particularly mothers, were supported following childbirth. It provided financial support during a crucial life event and advanced workplace and economic equality for women. Former minister for families and member for Jagajaga the Hon. Jenny Macklin MP expressed the incredible significance of the introduction of paid parental leave in 2011. She stated:

This historic reform is a major win for working families who have been waiting decades for a national Paid Parental Leave scheme.

As the federal member for Holt I have the privilege of regularly engaging with families at various community events. It is heartwarming to witness firsthand the profound love and commitment that parents have for their children. The joyous moments shared at these gatherings underscore the desire of parents to be actively present in their children's lives and play an integral role in their upbringing. It is evident that families cherish the precious time spent together fostering strong bonds and creating lasting memories, especially during those crucial early months after childbirth. The introduction of this paid parental leave aligns with these sentiments, recognising the invaluable role parents play in the early years of a child's life.

Building on the legacy of former Prime Minister Julia Gillard's pioneering move, today's bill embodies the ongoing commitment of the Labor Party to continue increasing support for Australian families. Funded through the October 2022 budget, the measures in this legislation stand as a beacon of our unwavering commitment to creating a more inclusive, flexible and gender-equitable paid parental leave system. At the heart of the bill lies the extension of paid parental leave to 26 weeks, a significant leap from the current 20 weeks. This expansion has been methodically planned with an incremental addition of two weeks each year, starting from July 2024 and increasing to a 26-week period by July 2026.

This bill signifies a profound shift in response to the evolving needs of Australia families. This initiative is not merely a policy change. It is a reflection of our commitment to making families a top priority. Families are at the forefront of the Albanese Labor government's policy agenda. This commitment is embedded in the fabric of our government, recognising that strong, healthy families form the bedrock of a prosperous and cohesive society. Let us delve into the details of this transformative legislation, focusing not just on its national implications but also on the direct benefits it will bring to the families of Holt.

We are lengthening the payment period. The extension from the current 20-week period to 26 weeks provides a more sustainable foundation for parents to nurture their newborns and infants. The extra weeks of financial support will mean that families can focus on the crucial early stages of their children's development without the undue stress of financial constraints. We are reserving weeks for each parent. The bill advocates for an increase in the number of reserved weeks for each parent from two to four. This 'use it or lose it' provision ensures that both parents actively participate in the caregiving process by encouraging shared parental responsibilities. We are not just promoting family values; we are laying the groundwork for a more equitable society.

Acknowledging the significance of family dynamics and the need for flexibility, the bill proposes to double the period during which parents can take paid parental leave at the same time, reaching four weeks in 2025. This reform is not just about flexibility; it is about acknowledging the diverse ways families structure their lives and about providing a necessary support to accommodate those differences. The road map for those changes is crafted with input from the Women's Economic Equality Taskforce, whose recommendations have been instrumental in shaping a comprehensive and inclusive approach.

Their insights, coupled with the experience and needs of families in Holt, have shaped a policy that is not just top-down but is rooted in the lived realities of Australian households. This legislation acknowledges the importance of supporting families by providing the means for parents to spend more time with their children during these formative stages, allowing them to nurture a foundation of love, care and connection that will endure throughout their lives.

In addition to these advancements, the bill addresses a minor technical amendment to ensure fathers who do not meet the work test requirements, due to premature births, can access paid parental leave. This provision, already in place for birth parents, ensures that all parents have equal opportunities to bond with and care for their newborns. The implementation of these changes is slated to commence from July 2024, applicable to births or adoptions from that date onward.

This bill marks the largest expansion of paid parental leave since its inception in 2011, representing a total investment of $1.2 billion over five years. The positive reception of these reforms by family and gender advocates, employers, the Business Council of Australia and the ACTU speaks volumes about the potential positive impact of this legislation.

It is estimated that over 180,000 families across Australia will benefit from the extended paid parental leave each year. Within my electorate of Holt, this initiative will be a game changer. The impact of this legislation will be tangible and transformative for my community, given that 82 per cent of households in Holt are families. The lives of families within our community will be directly touched by the extended support and financial security and the equitable framework that this bill proposes.

Crucially, this expansion is a strategic move towards greater gender equality. By encouraging shared care and increasing the reserved period, the bill aims to foster an environment where both parents get actively involved in the upbringing of their children. Investing in paid parental leave is not just about supporting families; it's about boosting the overall health and wellbeing of our society. It is about recognising that families are the backbone of our nation. Ensuring that they have the support they need is fundamental to our prosperity. Under the Albanese Labor government, families are seen not as mere constituents but as vital contributors to the nation's success.

For the 46,000 families in Holt, this bill is not just about providing financial support during crucial life events; it is about recognising the central role families play in shaping the social fabric of our country. Our commitment to this reform is not merely political; it is deeply rooted in the understanding that an equitable paid parental leave system is crucial for the health and wellbeing of parents and children. We know that investing in paid parental leave is not just a cost but an investment in the future, a future where children can thrive, parents are supported and the entire nation prospers.

As we look towards the future, it is imperative that our Paid Parental Leave scheme aligns with the realities of modern Australian families. It is imperative that our Paid Parental Leave scheme is flexible, fair and committed to driving positive health, social and economic outcomes for both parents and their children. This bill is a declaration of our dedication to the wellbeing of Australian families. It stands as a testament to our belief that supporting families is not just a policy; it is a fundamental duty of government.

The changes proposed are carefully balanced, providing increased support to mothers, encouraging active involvement of fathers and offering families the flexibility they need. This bill is not just good for parents; it is good for children, good for employers and good for the economy. It is a declaration that, as a nation, we value and prioritise the crucial role of parents in shaping the future of our society. I urge each member of parliament to stand united in support of this transformative legislation.

Together, let's usher in a new era of support, equality and prosperity for the families of this great nation.

I would like to conclude by applauding the work of the Minister for Social Services, the Hon. Amanda Rishworth MP, for her exceptional work in spearheading the reform of paid parental leave in this country. I commend this bill to the House.

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