Paid maternity leave would increase birthrate:Abbott

Australia’s birth rate is likely to rise under a Coalition government,  Tony Abbott says.

The  Opposition Leader made the claim today, in the first of three major speeches, setting out the “values and approaches” that he intends to take to the Federal election due later this year.

“There’s considerable evidence that decent parental leave can encourage women to have more children and raise Australia’s birthrate above the current 1.9,” Mr Abbott said.

“ A 2009 study in The Quarterly Journal of Economics suggested women might be 15 per cent more likely to have a second child when maternity leave provisions were strengthened,” he added.

Mr Abbott said, too, that the controversial maternity leave scheme, that he proposed recently, would meet this need.

He also reminded his audience, at a Leaders” Forum in Sydney, that it was the founder of the Liberal Party, Sir Robert Menzies, who had introduced child endowment in Australia.

Mr Abbott said the paid maternity leave scheme, that he is proposing, would be fully funded.

“Because all benefits have to be paid for, this will be funded by a tax levy of up to 1.7 per cent on companies’ taxable income over $5 million a year,” he  said.

He also promised  that a Coalition government government would curb spending and restore the  Federal budget to surplus,

Mr Abbott said the Rudd government had spent recklessly and needlessly in the wake of the global economic crisis.

He also promised tax cuts.

“Once Labor’s debt has been repaid and personal income taxes have been reduced, it should be possible to reduce company tax,” Mr Abbott said.

So even the levy, to fund his paid maternity leave scheme, might not be permanent.

“ If so, the levy would be only a temporary increase in tax for the 3200 companies with taxable incomes over $5 million a year,” Mr Abbott said.

Related stories:

1. Maternity leave:the numbers
2. Expect swift action on maternity leave report
3. Materniity leave:who pays?