Carina Garland (Chisholm, Australian Labor Party) Share this | Hansard source

I'm proud to be part of a Labor government with a strong history of improving the lives of Australian families, and I'm proud to rise in support of this bill, the Paid Parental Leave Amendment (More Support for Working Families) Bill 2023. It has always been Labor governments that have implemented the critical and nation-building reforms that this country has relied upon. From Medicare, the 40th birthday of which we have just celebrated, to the National Disability Insurance Scheme, the Pharmaceutical Benefits Scheme, the single mothers benefit and the child support system, it has been Labor that has put these important reforms into play in Australia.

It was a Labor government, of course, the Gillard government, that introduced paid parental leave in this country. As the Minister for Social Services has already stated, when paid parental leave was introduced in 2011, it was a major milestone for Australian families. For many parents, the 18-week payment, fully funded by the government, was the very first time they could access any paid parental leave. This provided a material advancement in workplace and economic equality for women—a change that was so important, given that we know that it was and still is women who carry a disproportionate share of unpaid care—and this has long-term consequences for their economic security.

We know, too, that paid parental leave is essential and good for families. It's not only good for women and families; it also plays an important part in the broader economy and in our communities. We know that, by investing in paid parental leave, there are enormous benefits for our economy.

We heard this on many occasions throughout our Jobs and Skills Summit, which we held upon our election in 2022. We heard loud and clear that gender equality and economic reform go hand in hand, and, more than just hearing that, we listened to what we heard. We know that one of the best ways to improve productivity is to provide more choice and more support for families, and that includes more opportunities for women. This was roundly supported at the Jobs and Skills Summit by business, unions, experts and economists. This is why paid parental leave featured so prominently in our very first budget. As the Prime Minister said, 'A parental leave system that empowers the full and equal participation of women will be good for business, good for families and good for our economy.'

In practical terms, the Paid Parental Leave Amendment (More Support for Working Families) Bill 2023 increases the current scheme to six months by 2026. This bill also makes minor and technical amendments relating to the eligibility for paid parental leave, including in relation to those who claim paid parental leave in exceptional circumstances and to the application of the work test for fathers and partners when a child is born prematurely. This bill implements in full our commitment from the 2022-23 budget and represents a total investment of $1.2 billion over five years.

I'm really proud to stand in this place and support legislation that delivers the largest expansion of paid parental leave since the conception of this scheme. This means that, from 2026-27, the government's total investment in paid parental leave will be approximately $4.4 billion a year and, through this amendment, 180,000 families who receive the payment each year will benefit from a more generous scheme. It's a scheme that supports maternal health and wellbeing, encourages both parents to take leave and gives parents and families flexibility. In addition to helping families better balance work and caring responsibilities, this bill also supports participation and productivity over the longer term by providing a dividend for the Australian economy.

As mentioned earlier, there are many who can see the benefit of these reforms; it's not just our government. This includes employer groups, such as the Business Council of Australia, who said that the expansion does not just help make a fairer society but is also a major economic reform leading to greater workforce participation and productivity. Unions also agree. The Australian Council of Trade Unions have said the increase to 26 weeks is 'a great step forward for Australian parents, particularly working women', and is a stark contrast to the policies and attitudes to women that we saw under the previous government. The Parenthood, a leading parent advocacy group, are on the record as stating that this is a significant improvement after no meaningful change to the policy during the last wasted decade.

It's important to note, too, that under the current rules a working family can access up to 20 weeks of government funded paid parental leave and, to encourage shared care, two weeks are reserved for each parent on a 'use it or lose it' basis, leaving 16 weeks for parents to share however they choose. Now, starting on 1 July of this year, the bill will expand the scheme by two weeks each year until it reaches 26 weeks—so a full six months—in 2026. This will mean that, by 1 July 2026, the scheme will be 26 weeks long, with four weeks now reserved for each parent on a 'use it or lose it' basis. That then leaves 18 weeks that parents can choose to share care however they wish. For example, in a fifty-fifty shared arrangement, that would allow both parents to utilise up to 13 weeks each. Importantly, single parents will have access to the full 26-week entitlement. Coupled parents will also be able to take up to four weeks of paid parental leave at the same time. Currently, parents may take up to two weeks together, but we know that enabling parents to take parental leave together has really positive effects for maternal recovery and bonding as a family. This provides the birth parent with extra support as they recover, and it's also a factor in reducing parental stress.

I note the minister's appreciation for the Women's Economic Equality Taskforce, who provided important advice to the government on the optimal model for the 26-week scheme. The setting in this bill reflects that important advice from the taskforce. This amendment strikes an important balance of increasing support for families while also providing flexibility in how they structure their care arrangements to suit their families. We know that's what families want—they want support, but they also want flexibility.

Additionally, supporting maternal health and recovery from childbirth is an important objective of this government's Paid Parental Leave scheme. The bill strengthens this objective by extending the length of the scheme, which we know has long-term health and wellbeing benefits for children and their parents.

Another key objective of the scheme is encouraging fathers and partners to take leave, which, in turn, helps balance work and family life and promotes greater gender equality. The evidence is clear that when dads take a more active role in looking after kids and participating in home life, mums feel more supported to return to work. This is great for the family. As I mentioned before, it's also great for our communities and for the economy. When dads take a greater caring role earlier in the parenting journey, evidence shows that there is a more even distribution of household responsibilities, which persists through a child's life.

The changes in this bill send a clear message that the government supports shared care, and we want to see that reinforced in workplaces and in our communities. We are doing a lot to break down gender stereotypes, as a government, for better outcomes for everyone in our communities. This is part of that work.

While the Commonwealth provides critical support through the taxpayer funded Paid Parental Leave scheme, employers also have a really important role to play here. We know that data collected by the Workplace Gender Equality Agency shows that the proportion of businesses providing their own paid parental leave scheme has increased over the last decade.

Ultimately, the Commonwealth payment is a minimum entitlement designed to complement employer provided leave. Whilst it's encouraging to see an increase of reporting employers who offered employer funded paid parental leave, from 48 per cent in 2013-14 to 62 per cent in 2021-22, we know that there is, of course, more to do. This is a positive trend demonstrating an appetite from employers who see themselves as playing a really significant role in our communities, alongside government.

I'm really pleased to be part of a government that's leading the way with these important reforms. It is in all of our interests—it's in the national interest—for paid parental leave to continue to be recognised and celebrated as not only a great social policy but also a valuable workplace investment. We know that the material benefits for parents, employers and the broader economy are so significant, and an investment in paid parental leave is an investment in our communities and an investment in the future.

It's essential that our Paid Parental Leave scheme supports modern Australian families. I echo the comments of the Minister for Social Services when stating that Australian families deserve a paid parental scheme that is flexible, that is fair and that has social and economic benefits for both parents and children at its heart. This bill provides just that.

Paid parental leave, like so many other major reforms in this country, is a proud Labor legacy. I know how much this will mean to my community and I'm proud to be part of a government that will always seek to strengthen, protect and support our communities. I commend this bill to the House.

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