Based on research findings here and internationally, tensions and trade-offs, and considering the varied purposes of paid parental leave, we offer three models for consideration based on the following design assumptions:
- Maintain at least the overall amount of paid leave available to mothers/birth parents of 18 weeks minimum.
- Reserve a non-transferable period for parent A and parent B.
- Encourage fathers/second parent to use more parental leave, taking into account all known benefits and limitations of 20 weeks to 26 weeks duration.
- Provide opportunities for women to participate in the labour market.
- Enable parents as much choice about concurrency as possible within the 20–26 weeks range.
- Avoid a bonus element so as not to restrict total accessible weeks of 20–26 weeks, however consider the possibility of a bonus in addition to 26 weeks in future policy.
- Enable as much flexibility of use as possible (of periods of 1 day at a time, or in blocks) within the 20–26 weeks range and the reserved leave boundaries.
- Ensure the total amount is available for single parents.
- Consider additional leave for multiple births.
- Continue the national minimum wage payment, noting that the minimum wage is a known barrier to fathers’ uptake.
- Increase the weeks of leave every 2 years.
The headings in the models are used in the following way:
Reserved leave refers to the portion of paid leave that is non-transferable between parents and is forfeited if not taken by the allocated parent.
Shared leave refers to the total amount of paid leave able to be distributed between parent A and parent B in whatever combination they prefer.
Concurrent leave refers to the amount of paid parental leave that parent A and parent B can take at the same time (overlap or concurrently), but not concurrent with employer provided leave/pay.
Each of the models represent an archetype arrangement – a ‘pushed to the limit’ design. This accentuates the impact of the research findings on the design of the scheme. For policy implementation purposes, some adjustment is also suggested.
Model 1 – Equal Sharing and Fully Flexible Care
| Reserved portion (non-transferable) | Shared portion | Total | Concurrent allowed | ||
|---|---|---|---|---|---|
| Year | Parent A (Birth parent) Weeks/days | Parent B Weeks/days | Weeks/days | Weeks/days | Weeks/days |
| 2023 | 2/10 | 2/10 | 16/80 | 20/100 | 10/50 |
| 2024 | 4/20 | 4/20 | 14/70 | 22/110 | 11/55 |
| 2025 | 4/20 | 4/20 | 16/80 | 24/120 | 12/60 |
| 2026 | 4/20 | 4/20 | 18/90 | 26/130 | 13/65 |
Model 1 emphasises providing a design that enables the most equal and flexible use of leave. Concurrent leave is allocated at the most extreme level to provide maximum choice for parents in how they share their care. In Model 1 the concurrent period allowed is much greater than currently exists and would represent a significant shift in design. However, the evidence to date in the use of the Australian scheme where overlap is now allowed, and internationally, suggests that parents do not choose concurrent leave of long duration.
Model 1 increases the reserved portion of non-transferable leave for parent A and parent B at the same rate in 2024 and does not prescribe when reserved leave can be taken. Reserved leave can be taken concurrently. Remaining leave is shared. The design does not reduce possible time for parent A from the current 18 weeks. A bonus of 2 weeks (or more) could be added where both parents use the full reserved leave portion (acting mostly as an incentive for fathers), bringing the total to 28 (or more) weeks.
Model 2 – Incentivise Father/Partner Care and Women’s Workforce Participation
| Reserved portion (non-transferable) | Shared portion | Total | Concurrent allowed | ||
|---|---|---|---|---|---|
| Year | Parent A (Birth parent) Weeks/days | Parent B Weeks/days | Weeks/days | Weeks/days | Weeks/days |
| 2023 | 2/10 | 2/10 | 16/70 | 20/100 | 2/10 |
| 2024 | 2/10 | 4/20 | 16/80 | 22/110 | 2/10 |
| 2025 | 2/10 | 4/20 | 18/90 | 24/120 | 2/10 |
| 2026 | 2/10 | 4/20 | 20/100 | 26/130 | 2/10 |
Model 2 emphasises providing reserved leave for fathers and limiting concurrency of leave taking to encourage the couple to make a decision about how to distribute the remainder of the paid leave. Model 2 only increases the reserved portion of non-transferable leave for parent B so that the shared portion ends up greater than Model 1. This design only allows concurrent leave for 2 weeks/10 days to nudge fathers to care alone. It does not reduce possible leave time for parent A from the current 18 weeks and does not prescribe when the use-it-or-lose-it component is to be taken. Note: total leave time of 20 weeks in 2023 limits the opportunity to maintain total amount of time available for mothers (parent A) AND reserve additional time for parent B care.
Model 3 – Protect Maternal and Child Health
| Reserved portion (non-transferable) | Shared portion | Total | Concurrent allowed | ||
|---|---|---|---|---|---|
| Year | Parent A (Birth parent) Weeks/days | Parent B Weeks/days | Weeks/days | Weeks/days | Weeks/days |
| 2023 | 4/20 | 2/10 | 14/70 | 20/100 | 4/20 |
| 2024 | 6/30 | 2/10 | 14/70 | 22/110 | 4/20 |
| 2025 | 6/30 | 2/10 | 16/80 | 24/120 | 4/20 |
| 2026 | 6/30 | 2/10 | 18/90 | 26/130 | 4/20 |
Model 3 emphasises preserving a longer period for mothers in recognition of their health related, breastfeeding and baby bonding needs.
Model 3 provides 4 weeks reserved, non-transferable leave for birth parent A in 2023, while providing 2 weeks reserved leave for parent B. The remainder can be shared. The design allows concurrent leave for 4 weeks to support maternal and child health and wellbeing and does not reduce possible time for parent A from the current 18 weeks. To further support maternal and child health the reserved 4 weeks for birth parent A would be taken at time of birth, and allow for concurrent leave with parent B.