Members of the House of Representatives have voted in favour of expanding paid parental leave to 26 weeks, with a Bill passing the House of Representatives on Wednesday. The changes will now go to a vote in the Senate.
The Bill finalises the government’s expansion of paid parental leave that was first announced in the October 2022-23 Budget, increasing the scheme to 26 weeks, or 6 months by July 2026.
From July 1 2024, parents will be eligible for an additional two weeks of leave to the current 18 weeks on offer, followed by another two in 2025 and then the final weeks in 2026.
Four weeks are reserved for each parent on a ‘use it or lose it’ basis, with these changes designed to encourage parents to share the care.
The Bill also introduces concurrent leave, which means that from 2026, both parents can take four weeks of leave at the same time if they choose to, providing families with the flexibility to arrange their care how they need.
Minister for Social Services Amanda Rishworth says the extra six weeks of is part of a total investment of $1.2 billion over five years from the Labor government towards paid parental leave.
“Paid Parental Leave is a proud Labor legacy and our Albanese Labor Government is building and expanding on that legacy,” says Rishworth.
“This will benefit over 180,000 families each year and represents the biggest expansion of the scheme since Labor introduced it in 2011.”
“The Bill gives Australian families more Paid Parental Leave than ever before and will support participation and productivity over the longer term, providing a dividend for the Australian economy,” she says.
There’s mounting evidence of a “motherhood penalty”, which refers to how becoming a mum in Australia comes with a high price for women. It occurs primarily because women take time out of the workforce or work fewer hours after having a child, which sees their lifetime earnings reduce significantly.
Creating an environment for fathers to take more parental leave has been shown to combat this, as shared parental leave policies can foster an equal division of unpaid care and paid work.
Support for the Bill
Offering their suport for the increase to paid parental leave, the Australian Chamber of Commerce said “businesses are set to benefit by ensuring that fewer productive employees end up leaving workplaces permanently and more women remain in the labour market.”
Equality Rights Alliance, Australia’s largest network of organisations advocating for gender equality, has called the changes “equality enabling” and that it offers “significant advances in the promotion of Australian women’s economic security.”
Dr Leonora Risse, an economist specialising in gender equality, noted that this is a “historic milestone” for women’s rights and economic standing, and gender equality in Australia.
“The amendments in this Bill are an indisputable and significant improvement from previous policy settings and are strongly welcomed,” said Dr Risse.