[July 2009]

Finally following years of campaigning by the SDA the Federal Government confirmed in the Budget that it would be introducing a national Paid Parental Leave scheme which will come into effect on 1 January 2011.  This is a significant milestone and is the result of sustained campaigning by the SDA and the rest of the trade union movement, with a chorus of support from across the community.

 
For over 30 years, the SDA has strongly supported and advocated the introduction of universal Paid Maternity Leave, as recognition that women and their babies should be financially supported in the period after the birth, to allow proper recovery and bonding to occur.

 
The ILO Maternity Protection Convention provides for 14 weeks Paid Maternity Leave although International research recommends that mothers have a period of at least 26 weeks away from work, after a birth.   SDA research in 2005 revealed that 6% of our pregnant members returned to work within 3 weeks after giving birth, 10% within 6 weeks, and 32% had less than 26 weeks leave.  Most thought that this was not enough time off, but needed to return to work due to economic necessity.

 
The SDA has always strongly argued that women in both the paid and unpaid workforce should be treated equally and neither group should be discriminated against.  An equitable payment also means that those women who have not had sufficient employment in the year before the birth are not discriminated against.

What will be provided?

From 1 January 2011, the federal government will provide:

• 18 weeks paid parental leave for the primary carer;
• at the adult Federal Minimum wage ($543.78 per week or $9,788 for 18 weeks);
• to those who have been in continuous paid work (with one or more employer) for at least 10 of the 13 months before the birth, and who have worked at least 330 hours in that period.

The payment will be taxed.

Recipients will not receive the $5,000 Baby Bonus or Family Tax Benefit B.

Primary carers earning more than $150,000 per annum will not be eligible for the payment.

Those who do not meet the work test, or who are not in paid employment, will continue to receive the $5,000 Baby Bonus, which is not subject to tax, plus Family Tax Benefit B, if eligible.

SDA Position

The SDA welcomes the federal government’s decision but it falls a long way short of what we were seeking, which would have been fair and affordable.

The government scheme discriminates against women who are not in paid employment or who leave their employment at the time of the birth, as well as those who have not worked sufficient hours in the previous year.  This is unfair.  It is disappointing that employers have been let off lightly by not being required to pay superannuation for the period of the leave, nor to top up the payment to full wage replacement.  It is also disappointing that the role of fathers has not been recognised with a period of paid paternity leave for them.

The Federal Government’s Paid Parental Leave Scheme, as announced, is a good start, but it is just the beginning.  Going forward, the SDA will continue to strongly argue for equitable paid parental leave payments to all women, and will seek to have the scheme extended to fathers.  At the same time, we will seek to improve the contribution made by employers, as a justified investment to retain their valued employees.