The introduction of paid parental leave for the first time in Australia has been broadly welcomed, but small business leaders are concerned about the burden the paperwork will give them.
After days of debate on Labor's scheme, the Senate agreed to the legislation with support from the federal opposition, and it became law yesterday.
Mums and dads around the country will receive18 weeks of parental leave paid at the federal minimum wage of around $570 a week from 1st January next year.
“This will be a huge win for Australian families”, said Federal Families Minister Jenny Macklin. “Parents will finally get the support they need to stay home with their new-born babies and of course it means that children will get a better start in life.”
Staff will be continue to be paid through their wages, as if they were still working, but with money paid in advance to companies from the government.
Paperwork burden
Many businesses think it'll make it easier to retain valuable staff, but some smaller companies are worried about the burden of the paperwork.
“Centrelink could just pay the parents directly without involving the employer”, said Peter Strong from the Council of Small Business of Australia. “There will be mistakes made, of course, and small businesses will be blamed for those mistakes even though it's just red tape, bureaucracy, gone crazy again.”
Families Minister Jenny Macklin says it's a landmark reform that will benefit many Australians who have had no such leave available until now.
“It's especially important for those casual workers, seasonal workers, part-time workers and those contract and self-employed workers many of whom have never had access to paid parental leave”, she said.
To qualify, the nominated parent must work at least 330 hours in 10 of the 13 months before the child's birth or adoption, with a maximum two-month break.
The leave will not apply to those with an income of more than $150,000 a year.
