Senate debates

Monday, 18 March 2024

Bills

Paid Parental Leave Amendment (More Support for Working Families) Bill 2023; Second Reading

10:59 am

Photo of Fatima PaymanFatima Payman (WA, Australian Labor Party) Share this | Hansard source

I rise to speak on the Paid Parental Leave Amendment (More Support for Working Families) Bill 2023. This bill represents a major step forward for gender equality and the economic advancement of working families. Under the current Paid Parental Leave scheme, working families can access up to 20 weeks of government funded paid parental leave. Two weeks are reserved for each parent, leaving 16 weeks for parents to share and utilise however they see fit. This bill will increase paid parental leave by two weeks every year until it reaches 26 weeks from 1 July 2026. This means parents will have access to a full six months of paid parental leave by mid-2026. When the scheme reaches 26 weeks, four weeks will be reserved for each parent on a 'use it or lose it' basis, as we heard from Senator Helen Polley earlier, with a further 18 weeks available for parents to utilise as they see fit and as fits their arrangements. Coupled parents will also be able to take four weeks of paid parental leave at the same time, which is an increase of two weeks from the current scheme. Under the new scheme, single parents will be entitled to the full 26 weeks of paid parental leave.

This bill represents a total investment into paid parental leave of $1.2 billion by the Albanese Labor government. I'm so proud to be part of a government that is committed to investing in working families, the backbone of our Australian economy. Approximately 180,000 Australian families who will receive paid parental leave each year are set to benefit from a fairer, more generous scheme that will boost productivity, increase workforce participation, advance the equality of women, support maternal health and wellbeing, and give families extra flexibility. As is evident, the bill is better for families, better for women and better for our economy. It is enthusiastically supported by both the Business Council of Australia and the Australian Council of Trade Unions. It is the latest instalment in a series of Labor reforms designed to improve the lives of Australian families.

As Minister Rishworth said, it was a Labor government that created Medicare, the Pharmaceutical Benefits Scheme and the National Disability Insurance Scheme. It was a Labor government that introduced no-fault divorce, the single mothers benefit and the child support system. And it was a Labor government, the Gillard government to be precise, that introduced paid parental leave in Australia. The Albanese Labor government is committed to strengthening our proud legacy of paid parental leave through this bill. For working families in my home state of WA, I know just how important an extra six weeks of paid parental leave will be. When I speak to families at their doors, they often tell me how hard it is to juggle caring responsibilities. This bill will provide much-needed relief whilst ensuring that Aussie kids get the best possible start in life.

I also want to emphasise the impact that this bill will have on working women because we know that women often take on a disproportionate share of unpaid care. Workplace equality and the economic security of women are key priorities for the Albanese Labor government, and I commend the social services minister, Amanda Rishworth, for her work on this bill, noting that this is the largest expansion of paid parental leave since the conception of this scheme. A key objective of the expanded scheme is to encourage more fathers and partners to take leave to ensure that parental duties are balanced and shared more equally and that women can return to work after starting a family.

We know that it's not easy. This bill is critical to ensuring that the transition back to work is as seamless as possible. Flexibility for families is central to this scheme, enabling parents to structure their caring arrangements in a way that best suits their needs. However, it is also important to note that the extent of paid parental leave should not be limited to the entitlement provided by the government. Australian employers also have a complementary role to play by providing their own schemes. All employers should be encouraged by the leadership of our government on this issue and deliver or expand their own schemes. It is definitely a welcome sign that the proportion of Australian employers that are funding their own paid parental leave schemes is increasing, and it is critical that this trend continues not only for the long-term health and happiness of Australian families but also for the significant economic benefits generated by paid parental leave.

I also want to take a moment to highlight the government's recent decision to pay superannuation on the Paid Parental Leave payment from 1 July 2025, which was a key recommendation of the Women's Economic Equality Taskforce. Paying super on paid parental leave is critical. It's critical because it will normalise parental leave as a workplace entitlement and reduce the impact of parental leave on retirement incomes. Parental leave should not be treated any differently to annual leave or sick leave when it comes to super. This measure and the expansion of the Paid Parental Leave scheme highlight the Albanese Labor government's commitment to address gender inequality. This is underpinned by 10 measures we have taken.

Count with me: our investment in women's health and safety; our investment in cheaper child care; Labor's tax cuts, which will deliver a tax cut to all women taxpayers; the amendments to the Workplace Gender Equality Act 2012, to enable the Workplace Gender Equality Agency to publish the gender pay gap data of employers with 100 or more employees; making gender equality an objective of the Fair Work Act 2009 through the 'secure jobs, better pay' reforms; supporting the private sector action to embed gender equality in pay, leadership and opportunities, including in emerging industries like clean energy with the 'Equal by 30' campaign on women in the clean energy sector; prioritising action on gender segregation of the labour market by recruiting and retaining more women into trades and other occupations through apprenticeship supports, fee-free TAFE places and targets in the Australian Skills Guarantee; including gender equality as a national priority in the National Skills Agreement; expanding eligibility to parenting payments for singles so that single parents, who are overwhelmingly mothers, can access increased support until their children are 14; and finally, No. 10—we've reached it—improving the child support system to ensure timely collection of child support owed to parents, who are, again, overwhelmingly women, and help prevent debt among low-income parents.

The theme of this year's International Women's Day was 'Count Her In'. I'm so proud to be part of a government that champions the economic inclusion of women, because we know that, when women are empowered and given equal opportunities to succeed, they thrive. I particularly want to commend the Minister for Women, Katy Gallagher, for launching the government's national gender equality strategy, Working for Women. The strategy outlines the government's vision for gender equality. It will ensure that Australia is a place where people are safe, are treated with respect, have choices and have access to resources and equal outcomes no matter their gender. The strategy outlines a path to make progress towards this vision over the next decade, with a focus on five priority areas: gender based violence; unpaid and paid care; economic equality and security; health; and leadership representation and decision-making.

When it comes to women's economic equality and security strategy, gender gaps are driven by patterns of work and care, women's overrepresentation in part-time, low-paid and insecure jobs and barriers to career advancement. Australia's industry and occupational segregation also contribute to gender pay gaps. Women tend to study or train in areas that attract debt or require unpaid placements to qualify, creating inequality from the start of their careers. Women led businesses or startups also attract less investment, restricting their ability to drive entrepreneurial initiatives in Australia.

To achieve gender equality, there needs to be a sustained reduction in the gender gaps for pay and retirement incomes. The government can use its levers to create safe, secure and flexible workplaces, support equitable access to education and skills building and remove disincentives and inequities that perpetuate occupational and industrial gender segregation and sustained pay and wealth gaps. We still have a long way to go to address gender in equality in Australia, but I know that the Albanese Labor government is on the right track. The economic security of women is and will remain a key feature of our government's economic plan—as it should. Expanding paid parental leave is a much-needed reform and critical step forward for economic inclusion. It is a reform that is not only good for women but good for families and good for the economy. I commend the bill to the Senate.

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