The social services minister has admitted it is unrealistic to expect parliament will pass a bill banning access to so-called paid parental leave “double-dipping” by 1 July, but confirmed it remains the government’s intention to do so.
Christian Porter also promised to address potential confusion created by a government website, which warns the changes will take effect from 1 July.
At the moment, parents are able to access 18 weeks’ of paid leave at the minimum wage from the federal government, worth about $11,500, and also access separate paid leave provided by their employer.
In the 2015-16 budget the government announced plans to ban the practice of “double-dipping” from 1 July, 2016. But legislation which would prevent accessing both schemes, or limit federal government payments to a top-up of the employer’s scheme to the value of $11,500, failed to pass the Senate
Porter told ABC Radio National: “the reality is the legislative change is not going to be successful in this term of parliament”.
“[For] People who are or will be pregnant, the status quo is clearly going to be maintained for a period of time. However, that does not mean this government is not trying to change that, or if re-elected, it wouldn’t be looking to modify the existing system.”
The shadow minister for families and payments, Jenny Macklin, said the Liberal party is going to the election promising to cut paid parental leave for thousands of Australian parents.
“The Coalition’s cuts to paid parental will leave about 80,000 new mums worse off every year. Some families will lose as much as $11,800 in support,” she said.
“Because of these cuts, thousands of new mums will be forced to choose between returning to work early and missing out on time with their new babies, or staying at home and having their living standards drastically reduced.”
The Department of Human Services website still warns: “for children born or adopted on or after 1 July 2016, [commonwealth parental leave] entitlements ... will be reduced where a claimant is also entitled to employer-provided primary carer payment [paid maternity leave].
“This budget measure is subject to the passage of legislation,” it notes.
Porter said the website warning payments would reduce on or after 1 July was “probably a technical truth but a profound practical unreality”.
“I accept [it’s a confusion] and I’ll look into that.”
Porter said paid parental leave was “generous to those at the lower end, as it should be” but was “inequitably generous” to the top 20% of income earners who can access both the federal and their employer’s very generous paid parental leave scheme.
He said he had negotiated with the crossbench to attempt a “modest softening” to the policy.
Macklin said Porter’s claim that Labor’s paid parental leave scheme is “inequitably generous” shows he is not across the detail of the policy and is out of touch.
“The minister’s own department has confirmed that many women who will be worse off under his cuts are on a median income of $43,000. Only a Liberal could think the minimum wage is ‘inequitably generous’,” Macklin said.
