Abbott paid parental leave scheme under fire

A majority of working class women will subsidise a minority of wealthy women as part of the coalition's paid parental leave scheme, Labor warns.

More Liberal dissent on parental leave

A fourth Liberal member has questioned Opposition Leader Tony Abbott's paid parental leave plan.

Some of Australia's poorest women would be forced to subsidise wealthy new mums under the coalition's paid parental leave scheme, Families Minister Jenny Macklin says.

Addressing a Work and Family Conference in Sydney on Wednesday, Ms Macklin attacked the opposition's $4.5 billion proposal to pay maternity leave at a mother's replacement wage, rather than at the minimum wage.

Opposition leader Tony Abbott has promised 26 weeks' paid parental leave at full wages up to $150,000, while Labor offers 18 weeks' leave at a minimum wage.

Ms Macklin says the main beneficiaries of Mr Abbott's scheme would be high-income women from affluent areas such as North Sydney and Mosman.

"While women in areas such as Wyong, Penrith, Liverpool and Campbelltown would receive the lowest financial benefits," Ms Macklin said.

One in five women working in Mosman is earning less than $600 per week - about the minimum wage - compared to more than 40 per cent of those in Wyong, she said.

The coalition's scheme would have women working in low paid jobs subsidising the paid parental leave of wealthy women, she said.

It is also these lower-income areas where the majority of babies are being born.

The fertility rate in Penrith is 1.99 children per family compared with North Sydney where families have an average of 1.39 children.

She also criticised the coalition proposal for a levy on business to pay for the scheme, which costs three times as much as the one currently running under Labor.

"But all Australians would pay for it," Ms Macklin told reporters.

She said businesses would pass the tax onto consumers, including those in lower-income families who are already under strain.


Share

2 min read

Published

Updated

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world