Tony Abbott’s paid parental leave policy appears to be off the table, at least for the time being. Yesterday Fairfax Media reported that the government’s contentious $5.5 billion policy has been shelved and is unlikely to be considered by parliament this year. Today Fairfax reports the back-down has been welcomed by big business and backbenchers alike.
The excitement might be premature however because The Guardian reports that two government ministers, Scott Morrison and Greg Hunt, have denied this and insist the government remains committed to the policy.
If PPL has in fact been shelved is it a win for common sense as some are saying? It might well be if the break is used to develop the policy.
If the time is used to answer these questions and develop a corresponding policy Australia’s workforce will be better off:
- According to the World Economic Forum’s Global Gender Gap Report Australia ranks 52nd in the world for female workforce participation. This is behind most other developed countries and is slipping backwards. Why is this and how can any PPL policy be used to address this?
- To what extent will paid parental leave at a parent’s replacement wage, rather than the minimum wage as offered under the current scheme, boost the female workforce participation rate? There is some research that indicates any government funded paid parental leave above the minimum wage does not procure greater workforce participation. If that is the case what is the economic rationale for implementing a more generous policy? Or is there evidence to the contrary that the more generous policy will in fact boost workforce participation?
- Childcare is cited as the biggest barrier for many Australian parents returning to work. Why is an investment in paid parental leave considered more effective for increasing women’s workforce participation than investing in childcare?
- Currently parents are entitled to 18 weeks’ of government funded paid parental leave at the minimum wage, in addition to any paid parental leave which is offered and paid for by their own employer. How will the government’s proposed PPL affect this? In particular, how many parents would be adversely affected by the new arrangement, at a greater cost to taxpayers? Will the proposed levy imposed on big business to pay for the PPL discourage employers from offering paid parental leave?
- The Human Rights Commission’s recent Pregnancy Review indicates pregnancy discrimination affects 1 in 2 mums, which prevents women from engaging in the workplace to the extent they would like and stifles our national GDP. How can any PPL policy be used to tackle this issue? How can the merits of a PPL policy be communicated in a way to stem this?
- What are the merits of PPL being framed as a workplace entitlement rather than welfare?
A frank consideration of these issues will only result in a more evolved, and potentially more effective, PPL policy. Let’s hope it happens.