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

I rise to speak on the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024. This bill is so vitally important for Australian families. In fact, it affects every parent, every child and every worker across our nation. It speaks to who we are as a society and what we value: fairness, equality, opportunity and the wellbeing of all Australians.

This bill represents a fundamental reform that will strengthen families, advance gender equality and boost our economic prosperity. The Albanese Labor government knows this because Labor governments have always known this. We know that paid parental leave is essential for the health and wellbeing of parents and their children. It provides a crucial period of bonding and care in those very early formative months, setting the foundation for much healthier, happier families. But, beyond the immediate benefit to families, investing in paid parental leave is a huge investment in our economy and our economic growth. It has the potential to increase workforce participation, enhance productivity and create a more equitable society. When parents, particularly women, have the support they need to balance those work and family responsibilities, they're more likely to return to work, pursue their careers and be part of the contribution to our nation's economic growth.

We're not alone in this view. In fact, many businesses, economists, unions and experts all recognise that one of the most effective ways to boost productivity and workforce participation is to provide families with more choices, more support and more opportunities. Of course, for so long many Australians, particularly women, have had to make difficult choices between career aspirations and opportunities and their caring responsibilities, and it is time for that to change, and that is what this government is doing.

The Albanese Labor government has been committed to making paid parental leave more accessible, more equitable and more flexible for all working families, and that flexibility is key. Our journey to reform began with critical changes implemented on 1 July 2023. These changes expanded access to paid parental leave, making it more available to more families than ever before. We also introduced greater flexibility, allowing parents to structure their leave in ways that best suit their needs and support their transition back to work, acknowledging the varying differences between families and their working circumstances. We also simplified the system, creating a single payment that both parents can access, making it easier for parents to share that care. This reform was designed to remove barriers and encourage shared parenting responsibilities, again promoting gender equality at home and in the workplace.

But these were just the first steps. We're now embarking on the largest expansion of paid parental leave since Labor first introduced it here in this House in 2011. From 1 July next year, we will begin extending paid parental leave to a full six months by 2026. This extension means families will have an extra six weeks of paid leave following the birth or adoption of their child, a vital period that allows parents time to bond with their children, establish important routines and support the emotional and physical development of their children. This expansion is, of course, so much more than just providing more time; it's about giving families more freedom to make choices that work for them. It's about recognising that every family is different and that our policies must be flexible enough to accommodate and incorporate all of those differences. By providing more leave, we empower parents to make decisions that best suit their specific family's needs, without sacrificing their financial security or their career progression, because taking time off work to care for a child should never come at the cost of a secure retirement.

This government is determined to ensure that paid parental leave does not adversely impact retirement income. That's why we're taking a historic step to pay superannuation on government paid parental leave from July 2025. We're investing $1.1 billion to ensure that every parent who takes leave to care for their child is also building on their retirement savings. This decision recognises that caring for children is a normal part of working life for both parents, and by paying superannuation on government paid parental leave we normalise parental leave as a workplace entitlement, just like annual leave or sick leave.

This reform will help reduce the financial impact on retirement incomes of taking parental leave, particularly for women, who have historically been most affected. The data is stark and cannot be ignored. When women take time out of the workforce to raise children it significantly impacts their retirement savings. On average, women retire with around 25 per cent less superannuation than men. This disparity is unacceptable, and it is a gap that we must close. By paying superannuation on government paid parental leave we take that crucial step towards closing the super gap and making it easier for women to make decisions about balancing care and work. This reform is not just about fairness; it's about economic justice as well.

For babies born or adopted after 1 July 2025, all parents who receive paid parental leave will receive an additional 12 per cent contributed directly into their super fund. The contribution will be made annually by the ATO after the end of each financial year, and it will include an additional interest component to compensate for any lost earnings that would have accrued had the payment been made more regularly. Most parents won't need to take any additional steps to receive their superannuation payment, and the claim process for paid parental leave will remain unchanged.

From 1 July 2026, when the Paid Parental Leave scheme is extended to 26 weeks, the maximum amount a family could receive in superannuation contributions will be approximately $3,000 per birth. This is a significant boost to retirement incomes, and it will make a real difference to the lives of so many Australian families. I know all across the country, and especially in my electorate, women I've spoken to have said what a big difference it will make to their families.

This government understands that investing in paid parental leave is more than just a financial commitment; it's an investment in our collective future. It's an investment in the security and wellbeing of our families, and of course it's an investment in the economic independence of women and the overall prosperity of our nation. We know that when families are supported children thrive. We know that when women have the resources and opportunities to participate fully in the workforce our economy grows stronger. We know that when we close the superannuation gap we build a fairer society where all Australians—all of them—can retire with dignity and security. We understand how important that is.

These reforms are part of a broader vision for Australia—a vision where families do not have to make that really hard choice between financial security and caring for their children. That's a terrible choice to have to make. This is a vision where both parents can contribute meaningfully to family life and the workforce without being penalised for doing so. This is a vision where women have equal opportunity to succeed in their careers and to enjoy a secure retirement. We know how important it is to have paid parental leave and to have superannuation paid on PPL. We've always been supportive of ensuring in particular women's economic prosperity and involvement.

In contrast to this, we have the opposition, the Liberals and the Nationals, who we know have spent decades trying to destroy the superannuation system. We've seen that over and over again. Of course, we now know they're walking away from their previous support for superannuation on paid parental leave. It is atrocious that it's actually happening. It's another stunt by the Liberals and the Nationals, and the usual negativity we hear from them. But the fact is that they have never supported superannuation. They fought it every step of the way—always—just like they've opposed our cost-of-living measures. In the past they've opposed so many superannuation measures. They opposed paid parental leave when we first brought it in, as we know. They said it was 'double dipping'. That's how they see it. Yet here we have another of their stunts, talking about changes to this historic reform that we want to bring in to assist Australian families.

On this side of the House, we are very proud to be building on our Labor legacy when it comes to paid parental leave. I was here in the House in 2011 when Labor first introduced paid parental leave, a truly historic moment. It is Labor governments that do that. And I'm incredibly proud to be here now speaking on the next great Labor reform to a scheme that we created and that we are building on. The bill serves as yet another reminder that it is Labor that continues to build a better future for all Australian families.

These historic reforms to paid parental leave are testament to our commitment to fairness, equality and opportunity for all. We strongly believe every child deserves the best start in life and every parent deserves the support they need to provide that start. We believe a fair society is one where everyone has that opportunity to thrive regardless of their gender or their family circumstances. And we believe so strongly that our economy is so much bigger and better and stronger when all Australians are empowered to contribute and be involved to their fullest potential.

These paid parental leave reforms that we are enacting today are such a vital step towards realising this vision. They're a bold and necessary step forward, and we're incredibly proud to be introducing this bill and to be fighting for these important reforms. And I want to acknowledge all those who worked for decades towards this moment, the people who advocated for these really important changes—and for the initial reform we bought in all those years ago for paid parental leave. It is Labor, again, that is adding to that, especially for superannuation on paid parental leave. I know there are many people throughout the nation who raised this issue and fought for it for so many years. We are so proud, as a government and as the Labor Party, to be introducing today what is a historic reform when it comes to having superannuation for paid parental leave. I commend the bill to the House.

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