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2010 Election Snapshot

Coalition Paid Parental Leave Policy

  • Summary

    Criteria for eligibility is the same as Labor’s but the LNP scheme is attractive for those on high wages as it pays the replacement wage up to $150k p.a., with superannuation. The scheme is funded by a 1.5% levy on companies with profits over $5m and this is offset by a reduction in overall company tax at the same 1.5%. The scheme is administered entirely by the government but will only commence in July 2012. Until then the Labor scheme will operate.


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    The LNP values family as one of the most important institutions in their policy framework, and find it truly unacceptable that women are deprived of the opportunity to raise a family due to the financial concerns of unpaid leave from work.


    In accordance with recommendations from the World Health Organisation, the LNP’s Paid Parental Leave scheme will offer benefits for 26 weeks, so as mothers and their children can benefit from exclusive care and breastfeeding. The women in our workforce will be retained therein, and productivity will increase as a consequence of these reforms; women will participate more actively prior to having children as well as afterward.


    Mothers will receive their replacement wage up to a maximum of $150k p.a. or the Federal min. Wage – whichever is greater, not one based on the national minimum wage. Superannuation entitlements will be enjoyed at contributions in line with the mandatory 9%. Two of the 26 weeks will be able to be used simultaneously or separately and paid at the father’s replacement wage up to a max. $150k p.a or Federal min. Wage - whichever is greater, including superannuation contributions.


    The LNP scheme will be funded by a 1.5% levy on company tax incomes greater than $5m, and administration of the scheme will not burden businesses; it will be conducted entirely by the Family Assistance Office. In order to offset the levy, the overall company tax rate will be reduced by 1.5% from 1st July 2013.


    The test of eligibility will remain essentially the same as that recently legislated by the current Labor government:


    • 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 ALP’s legislated scheme will commence on January 1st 2011, and be maintained until July 1st 2012, when the LNP Paid Parental Leave scheme will commence.