: Personal finance news from Parliament House in Canberra

September 30, 2008

Expect swift action on maternity leave report

Filed under: financial advice, politics, social security, superannuation — Alan Thornhill @ 5:15 am

“We’ve had 12 years of neglect on this.

“It’s about time Australia bit the bullet on maternity leave.”

That’s how the Prime Minister, Kevin Rudd, welcomed the Productivity Comission’s recommendation of a broad, new taxpayer funded maternity leave scheme, for Australian women.

Then he went on to say:”We intend to get on with the job and we will get the policy setting right once we work our way through the detail of this report.”

With a welcome like that, it’s a fair bet that the government will implement something very like the commission’s plan.

But broadly, that is:-

-18 weeks’ post natal leave, paid at the ruling minimum wage, which is presently $543.78 a week.  The government would pick up the bill for this.

-all employees with “a reasonable attachment” to the workforce would be eligibile.

-the employer concerned would continue to pick up the bill for the absent employee’s 9 per cent superannuation contributions for this time.

Present arrangements would largely contunue, under a new name, for stay at home mothers, who are not attached to the workforce.

The commission said that as most employees have, at least, a few weeks’ annual leave up their sleeves, this scheme should allow most mothers to stay at home with their babies for six months.

It is recommending two weeks’ leave, as well, for new fathers.

The commission estimates that the cost to the government, when all items are considered, would be about $450 million a year.

It expects that business would contribute an extra $75 million a year.

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