Justine Elliot (Richmond, Australian Labor Party, Assistant Minister for Social Services) Share this | Hansard source

I'm very pleased today to be speaking in support of the Paid Parental Leave Amendment (More Support for Working Families) Bill 2023, a piece of legislation that is of utmost importance to our nation. This bill represents not just important reform but a really transformative change that holds immense significance for families, particularly women. Of course, it's also vitally important for the overall health of our economy.

The Albanese government understands the significance of this reform, and we're committed to championing the wellbeing of parents and their children while striving for gender equality and focusing on economic growth. Paid parental leave is the absolute basis upon which we build a healthier, more nurturing environment for parents and their children. It's important because it provides much-needed support to new parents during a really crucial and often difficult phase of life and really fosters a strong and healthy start for our children as well. It can be a very challenging time, and we should all be there to provide support for those new parents. As a government, there's a lot that we can do, and paid parental leave is vitally important in that.

This is not merely a social policy that's good for families but also an economic one, contributing significantly to the stability of families and the efficiency of our workforce. And it is, importantly, a key instrument for achieving gender equality—a goal that unites us all. All of us—governments, businesses, unions, community and economists—recognise its profound importance.

When implemented correctly, paid parental leave can be a win-win, not only fostering individual wellbeing and family wellbeing but contributing to the greater economic good, because it offers support for working parents, reduces turnover in the workplace and results in a more engaged and productive workforce. Moreover and so importantly, it empowers women to maintain their careers and economic independence, bridging so many gender disparities.

Businesses, unions, experts and economists all understand that one of the most effective ways to boost productivity and participation is providing more choices and more support for families, alongside greater opportunities for women. Our commitment to this cause was evidenced in our first budget, where we invested half a billion dollars to extend the scheme to six months by 2026. This monumental investment represents the most substantial commitment to paid parental leave since we introduced the scheme in 2011, benefitting over 180,000 families every year. This reflects the Albanese government's unwavering commitment to improving the lives of working families, ensuring better outcomes for children and furthering women's economic equality.

The paid parental leave bill that we're debating today is, of course, the second phase of the government's reforms, building on the changes we initiated last year. These initial reforms, which came into effect on 1 July, expanded access to the payment, providing parents with greater flexibility in how they take their leave, and encouraged shared caregiving responsibilities. It's so important to do that, recognising different working environments and family environments as well. These changes were designed as the building blocks for the comprehensive 26-week expansion outlined in this bill.

This bill is a really significant leap forward in the evolution of our paid parental leave scheme, as it increases the length of the payment from 20 weeks to 26 weeks. Furthermore, it extends the period reserved for each parent from two weeks to four weeks and doubles the period during which parents can take leave at the same time, from two weeks to four weeks. Implementation will commence on 1 July 2024, and two additional weeks of leave will be added each year until we reach the full 26-week period in 2026.

The significance of this expansion cannot be overstated. It provides mothers with up to 22 weeks of paid parental leave—an additional month compared to the current scheme. That extra time is so invaluable for mothers to recover after childbirth and establish those strong bonds with their newborns. Furthermore, it doubles the period reserved for fathers or partners, encouraging them to take a more active role in parenting. Whether you're a mother or a father caring for your child, gender should not affect your access to parental leave payments.

This bill also sends a resounding message that parenting is an equal partnership, and it actively supports gender equality. This government values men as caregivers just as much as women. We understand that, we want this to be reinforced in both workplaces and communities and we see that so often in our communities and our families—but there needs to be legislation like this to encourage people to take it up.

The bill also ensures that single parents are not left behind. They, too, will have access to the full 26 weeks of paid parental leave. Moreover, the bill introduces flexibility by increasing the number of weeks during which parents can take paid parental leave at the same time.

When we announced our paid parental leave reform in the 2022-23 October budget, we, of course, sought the guidance of and listened to the Women's Economic Equality Taskforce to determine the best model for the 26 weeks—one that would really work to advance women's economic equality. The task force recommended reserving four weeks for each parent on a 'use it or lose it' basis and allowing parents to take up to four weeks of leave at the same time, which is a great option as well. We wholeheartedly embrace this advice, as it represents a well-balanced approach that increases support for mothers, encourages fathers to take leave and provides families with the flexibility to structure their care arrangements to their unique needs.

As a result of these reforms, from 2026-27 the government's total investment in paid parental leave will be around $4.4 billion a year. It is a massive investment in a plan that will be so important for families. The government payment is a minimum entitlement designed to complement employer provided leave as well. Of course, we were all really pleased to hear the data that was collected by the Workplace Gender Equality Agency, which reported that in 2021-22, 62 per cent of employers offered employer funded paid parental leave. This is a very positive trend, as in 2013-14 that same figure was only at 48 per cent. Seeing that increase in employer contributions means that employers are recognising the value and the worth to their employees and to the economic productivity of their business as well. Data such as this is indicative of a society that has evolved greatly and a business community that sees itself as having a role alongside government in providing that paid parental leave. I concur with the comments by Minister Rishworth in saying that we want to continue to see this trend grow, and I thank all those employers who have seen paid parental as a workplace investment that returns better benefits for parents, employees and the economy.

In summary, the changes that are outlined in this bill strike a critical balance between providing more support to mothers, encouraging fathers and partners to take an active role in parenting and offering families the flexibility they need to structure their care arrangements effectively depending upon their family circumstances, their particular occupations and their working environments. They will be able to do that effectively. We know that for so many people they were unable to continue to work in the past because that capacity was not there, that financial support wasn't there, that flexibility wasn't there. But that's what we are saying with this bill in terms of providing that.

It's so essential that our Paid Parental Leave scheme aligns with the needs and dynamics of modern Australian families and embodies a policy that's flexible and fair and that promotes positive health, social and economic outcomes for both parents and their children. When children are born is wonderful time, and to have access to that leave to be able to do all the necessary bonding, to have that time and to not be rushed will reap huge benefits.

This bill is a foundation support for parents and children. It's good for employers and a catalyst for economic growth. The Albanese government is always proud to provide the support that Australian families need and deserve, to strengthen our economy and to promote gender equality. We have seen that same belief in terms of our tax cuts for every taxpayer throughout Australia. We are always looking at measures that will help Australian families, and, as our tax cuts will do a great job, so too will this paid parental leave be at the heart of providing that support to Australian families.

We, as Labor governments, have a proud history of improving the lives of Australian families, whether it be from Medicare and the National Disability Insurance Scheme to no-fault divorce, the single mother's benefit and the child support system. It was Labor who first introduced the maternity allowance in the early 1900s. Despite many efforts from those opposite to dismantle the support for Australian families, it's Labor who introduced the Paid Parental Leave scheme that we know now.

I also acknowledge those many people who have advocated for paid parental leave for years and years. So many different groups and organisations and unions were advocating for this for years. We listened and we delivered it in 2011, and we extended it and we're expanding it again. As I said, it's been wonderful to see the changing attitudes in the community, and business as well, recognising the value and the worth of it. Now, here we, Labor, are again, continuing to bring forth reforms to improve the lives for all Australian families.

I'm really proud to be a part of a Labor government who have been, and always will be, on the side of Australian families. This bill, along with our many, many other measures—including, as I mentioned earlier, our tax cuts—are making a huge difference to Australian families. All of these measures are designed to improve the lives of Australian families, and we're very proud of them. I certainly commend the bill to the House.

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