Tony Abbott set to revise parental leave and drop salary cap to $100,000 - Women's Agenda

Tony Abbott set to revise parental leave and drop salary cap to $100,000

Prime Minister Tony Abbott has plans to lower the $150,000 salary cap on his paid parental leave scheme to $100,000, according to The Australian today.

As it currently stands, Abbott’s PPL scheme would pay women after the birth of a child their replacement salary for six months, cutting off at $75,000 for women earning more than $150,000 a year.

The revised limit would see women earning more than $100,000 a year receive a maximum of $50,000 during their six months parental leave.

The Australian reports that Abbott will drop the ceiling to bring it in line with his new welfare limit, and following pressure about the cost of the scheme from the public and his own party.

Although he has not confirmed the move publicly, Abbott reportedly informed his colleagues of the revised plans ten days ago. He said yesterday there are a “range of measures” the Government will finalise over the next two weeks in the lead up to the budget.

However, the drop is not expected to dramatically lower the price of the scheme — currently expected to cost 5.5 billion — given just 2% of women of child bearing age are reportedly earning more than $100,000 anyway.

What do you think? Would this new limit make PPL fair?

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