#ausvotes

ALP Paid Parental Leave Policy

• Summary

  The ALP scheme while applying strict criteria for eligibility, appears to entertain a casual or low income earner who may earn more than their usual income while participating in the scheme. It provides 18 weeks leave which is less than the professionally recommended 26 weeks. The ALP scheme however, is a benefit paid to the family; it doesn’t differentiate between father and mother and so offers the family considerable flexibility. Employers will incur a cost of administering the scheme in right of employees who have given in excess of 12 months continuous service.

  
  

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  The ALP recognises that both men and women share the responsibility for childrearing, and do not discriminate between the two in this respect. Less than 25% of women on low wages (less than $400 pwk) have access to paid parental leave provided by an employer, compared to 70% of women in higher wage brackets. Hence, Australia’s first Paid Parental Leave scheme is already legislated and bound to commence on January 1st, 2011. Any family having a child or adopting a child after that date will receive 18 weeks remuneration at the National Minimum Wage, which is currently a gross amount of $570per week.

  
  

  Casual workers, contract workers, seasonal workers, and also the self employed will have access to the scheme. Considering 57% of all casual employees are women, and 25% of them have no paid leave benefits, a simple parental work test will render a candidate eligible for the scheme:

  
  
  • Work must be undertaken 10-13 months prior to birth or adoption of child
  • Minimum of 330 hours work within that 10mth period
  • Have an adjusted taxable income of $150k or less in previous financial year
  • Be living in Australia and meet the requirements of residency
  
  

  The scheme can be accessed in addition to employer funded parental leave schemes, and those ineligible for the scheme are still entitled to family assistance including the Baby Bonus.

  
  

  The benefits of Paid Parental Leave will endure to increase participation in the workforce as women are empowered to re-enter once their child is of age. Women intent on having a family will not be deterred from the prospect of unpaid leave and so will be motivated to enter the labour market.

  
  

  Choosing to allow families the choice of how to share the responsibility of caring for a new born, the ALP offers a generic Paid Parental Leave scheme to benefit the family as a whole. Enabling parents to claim for child related benefits up top 3 months ahead of a birth or adoption, they are then able to plan and share the time off work in flexible proportions, or assign the full amount to their spouse.

  
  

  Business will be able to retain the skills and assets invested in their staff. Benefits will be paid to parents by the Family Assistance Office, unless employers have eligible employees with more than 12 months continuous service. In the event of the latter, employers will receive advances from the Government at specific intervals.

  
  

  Casual seasonal and contract workers will be deemed in continuous employment if a break between work is no greater than 8 weeks. Further provision allows parents on paid parental leave to undertake activities at work for up to 10 days during leave, in order to maintain contact with the workplace and still enjoy the benefit of the scheme. Due to this comprehensive Paid Parental Leave Scheme Employers are now able to enhance the offerings of a workplace conducive to families.