Catryna Bilyk (Tasmania, Australian Labor Party) Share this | Hansard source

The Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 is a significant piece of legislation that brings together two great economic reforms of the Labor Party: universal superannuation and paid parental leave.

This legislation before us today, like much of our legislation, is an example of what happens when you have equal representation of women and men at the decision table. That's not to say that men can't make decisions that are beneficial to women and vice versa, but having equal representation in the caucus room, the cabinet and the ministry is the best way to make decisions that will benefit all Australians. Contrast this with the opposition, who do not believe in a quota system. Instead, they stick to their old male centred view of the world, arguing that their merit based system will naturally produce the best candidates regardless of gender. Even today, women make up only 28 per cent of their party room. That's roughly one-quarter of the party room, with women almost outnumbered by three to one. I do wonder: do they believe that women are not as capable as men, or is it simply further confirmation that the Liberal Party do not value the role of women in parliament or society?

The Labor Party is truly the party of the people. We are more diverse, more whole and more reflective of the society we were elected to represent. This is evident in our policies and legislation. We are the party that introduced no-fault divorce, the parenting payment, the Family Law Act, equal pay for equal work and the Sex Discrimination Act, and we created the Workplace Gender Equality Agency. Labor releases an annual women's budget statement showing the impact on the budget of women, and we've done this every year since the Hawke government in the 1980s. The Coalition has not adopted the same practice, a clear signal they don't prioritise the part that budgets and policies play in advancing the cause of women's equity—or, rather, it sends a signal that the impact of our policies on women is a source of pride for Labor yet for those opposite it is a source of shame.

Labor have always taken pride in our representation of women and women's interests. This legislation brings together two great Labor reforms: universal superannuation, introduced by the Keating government in 1992; and the Paid Parental Leave Act, introduced by the Gillard government in 2011. Until this bill is passed by the Senate, paid parental leave is the only remaining form of paid leave in this country that does not come with superannuation.

This reform is therefore critical in closing the gap and will go a long way in ensuring that parents are not penalised in their retirement due to their decision to have children. Often referred to as the 'motherhood penalty', the increased economic insecurity due to the time out of the workforce to care for children must be dealt with. Statistics show us that women with children face an average 55 per cent drop in earnings in their first five years of parenthood. The effect of this lower income compounds over time, increasing the gap between men's and women's superannuation balances at retirement. In a clear example of gender inequality, women on average retire with around 25 per cent less super than men. Paying superannuation on paid parental leave is therefore an important step in addressing gendered gaps in retirement savings.

This bill introduces superannuation on government funded paid parental leave for children born or adopted on or after 1 July 2025, with the government set to pay an additional 12 per cent of their paid parental leave as a contribution directly to their super fund. The super contribution will match the superannuation guarantee rate, as of 1 July, of the financial year the paid parental leave is taken, and will rise with any increases to the legislated superannuation guarantee. These changes are set to benefit around 180,000 families that currently access the government Paid Parental Leave scheme each year.

This legislation builds on our other reforms to the Paid Parental Leave scheme since taking office in 2022, including the biggest expansion in paid parental leave since the previous Labor government created it. In our first government we delivered an expansion, from 20 weeks to 26 weeks, to paid parental leave from 2026. This means that, once the Paid Parental Leave scheme reaches 26 weeks in 2026, and based on a superannuation guarantee rate of 12 per cent, the maximum amount a family would receive in superannuation contributions is around $3,000. We're also making the scheme more flexible so parents can share the responsibilities and the experience of those precious first months of a child's life. This is more than just great news for mothers; it's great news for dads as well. Research tells us that fathers are far more likely to use parental leave when it is well paid and flexible.

As well as adding super to the government payment, this bill will also ensure the parental leave framework in the Fair Work Act complements the Paid Parental Leave scheme. Unpaid parental leave in the Fair Work Act is an entitlement that supports parents to remain connected to paid employment while they care for their child.

In short, this bill, as we've heard, is good for families, good for women, good for business, good for the economy and, most importantly, good for children. It has the endorsement of businesses, unions, researchers, experts and economists, all of whom understand that the best way to increase productivity and participation in the workforce is to provide more choice, more support for families and more opportunities for women. Paid parental leave has already changed the lives of millions of Australians. These reforms strengthen the Paid Parental Leave scheme—yet another great and proud Labor legacy. I commend the bill to the Senate.