Alison Byrnes (Cunningham, Australian Labor Party) Share this | Hansard source

The Albanese Labor government has made significant investments to improve the lives of Australian women, with a strong focus on economic equality, safety and health. For the first time in history, women make up over 50 per cent of our government, reflecting our commitment to ensuring women's voices are truly heard. In the latest budget, we invested more than $160 million to women's health initiatives, addressing critical needs such as targeted treatments for breast cancer and expanding support for breastfeeding services. We committed $1.9 billion to expand eligibility for the parenting payment single, allowing single principle carers, most of whom are women, to receive support until their youngest child turns 14, which is an increase from the previous cut-off age of eight.

Our government is focused on ending the national crisis of gender based violence, including violence against children and young people. Just last week, National Cabinet agreed to a comprehensive $4.7 billion package that harnesses important opportunities to work together to prevent violence and support legal services. There has been $1 billion dedicated to providing social housing for women and children fleeing violence, ensuring they have a safe space to rebuild their lives with dignity and security.

Under Labor, the gender pay gap has dropped to a historic low of 11.5 per cent, as of August 2024. We have a little way to go on this, but, at least, we have a historic low at the moment under our government. Our government made a commitment to close the gender pay gap, and we have seen that pay gap drop to an all-time low over four consecutive reporting cycles. It is an incredible achievement, but, as I said, there is still more work to be done to close this gap further.

Since we have been in government, women are earning on average $173.80 more per week than under those opposite. We are also proud to have backed a 15 per cent wage increase for aged-care workers, over 85 per cent of whom are women. We have also announced that there will be a 15 per cent increase to wages for early childhood education and care workers. This wage increase will be tied to a commitment from childcare centres to cap fee increases, ensuring that workers are fairly paid without passing additional costs on to families. We recognise the essential care both aged-care and early childhood education and care workers provide and we want to ensure they are fairly paid for their work. We want Australians to earn more and keep more of what they earn. From 1 July this year we delivered a tax cut for every Australian woman taxpayer, offering cost-of-living relief. This tax cut meant a bigger tax cut for 90 per cent of Australian women taxpayers. These cuts benefit workers in key sectors like child care, disability care and aged care, which have a predominantly female workforce with more than 95 per cent of those taxpayers to receive a bigger tax cut.

We have done so much since coming to government but there is still a lot of work to be done. The Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 is another step forward for Australian women. We all here know it was a Labor government that introduced paid parental leave in Australia in 2011. The Gillard government introduced this groundbreaking reform that provided 18 weeks of paid parental leave to eligible parents. This was a significant step forward in supporting working families, ensuring that new parents, particularly mothers, were able to take time off to care for their newborns without the stress of losing income. While this was a huge relief for new parents and families and provided the much-needed financial support, it didn't address the long-term economic impacts on women.

Women are more likely to take on the role of primary caregiver over men and this role often requires them to take extended periods of leave from paid work. This time out of the workforce, even if they are on paid parental leave, impacts on their financial security, particularly when it comes to retirement savings. The data is clear. When women take time out of the workforce to raise children, it impacts their retirement incomes, with women retiring on average with about 25 per cent less super than men. This disparity, which is often referred to as the 'motherhood penalty', is a result of the cumulative effect of lower wages, interrupted career progression and the absence of superannuation contribution during periods of unpaid care.

This bill aims to address this inequality by introducing superannuation contributions on government funded paid parental leave beginning in July 2025. This is a significant step towards closing the gender gap in retirement savings and ensuring that women are not penalised for fulfilling their caregiving responsibilities and choices. The bill will see the government invest $1.1 billion over the forward estimates to pay superannuation on government paid parental leave from July 2025, benefiting many Australian families each year.

For babies born or adopted from 1 July next year, all parents who receive PPL will receive an additional 12 per cent paid directly to their super fund. The contribution will be made annually by the Australian tax office after the end of each financial year and will include an additional interest component to address any forgone superannuation fund earnings as a result of the payment not being made more regularly. Most parents won't need to do anything further to receive their superannuation payment and the claims process for paid parental leave will not change.

By ensuring that superannuation is paid on paid parental leave we are sending a clear message that taking time out of the workforce to care for a child is not a career setback but an essential part of life that should be supported and valued. Paying super on government parental leave is an important investment to help close the super gap and make decisions about balancing care and work easier for women. This reform will also help to normalise parental leave as a workplace entitlement, much like annual leave or sick leave, and it will help that both men and women will be able to take time off to care for their children without fear of economic disadvantage.

The Albanese Labor government's commitment to expanding and improving paid parental leave is clear. We have already taken significant steps to modernise the scheme, to better meet the needs of Australian families. From July 2023 we introduced a more generous family income test, making it easier for more families to access the payment. We also made the leave more flexible, allowing parents to share the care and take leave in a way that suits their individual circumstances. In July this year we increased paid parental leave from 20 weeks to 22 weeks, marking an important step towards supporting new parents. In July next year, we will further extend it to 24 weeks, and, by 2026, we will expand paid parental leave to the full 26 weeks. This gradual expansion will provide families with the time they need to bond with their newborns, support their transition back to work and reduce the pressure on mothers to return to work before they are ready. This expansion is expected to benefit around 180 families each year, giving families the choice to use the scheme in the way that best works for them.

This reform also aligns with the broader goals of our government's economic plan. Alongside tax cuts, investments in cheaper child care and workplace relations reform, the paid parental leave amendment is part of our strategy to enhance women's economic security. By ensuring that women earn more, keep more of what they earn and retire with more, we are working to build a more inclusive and equitable economy. It is important to recognise that this bill is not just about women; it is about families, children and our society as a whole. When we invest in the economic security of women, we invest in the wellbeing of families and the future of our children. On this side of the House, we know an investment in paid parental leave is an investment in families, in women's economic security and in the broader economy. We create a society where everyone, regardless of gender, has the opportunity to thrive and contribute to the community.

The importance of this paid parental leave amendment cannot be overstated. It is a critical step towards gender equality, economic security and social justice. It builds on the legacy of past Labor governments, who have consistently fought for the rights of working families. From the introduction of maternity allowances in 1912 to the Paid Parental Leave scheme in 2011 and even the creation of Medicare and the NDIS scheme, Labor has always put Australian families first. Today we have the opportunity to continue this legacy by supporting this bill and ensuring that all parents, regardless of gender, have the financial security they need to care for their children and retire with dignity. This bill is a bold and necessary reform that will make a real difference in the lives of Australian families. It is a step towards a fairer, more equitable society and it is an investment in Australian families.

Debate adjourned.

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