Next steps for paid parental leave in Australia

Unfinished business: Additional optimal design features

There are a range of areas that have attracted criticism and comment in the 10 years the current scheme has been in place. We list these to ensure they remain on the agenda for change. To further enhance gender equality, inclusivity and security, Australia’s paid parental leave system would:

  • Add superannuation to paid parental leave to reduce the superannuation gap between women and men and to reduce women’s lifetime earnings gap.
  • Increase the payment level to at least two-thirds of average income as recommended by the EU. This will influence the uptake by men.
  • Set a target for uptake by fathers/partners – and monitor it over time.
  • Ensure that all workers (citizens, residents and visa workers) are eligible for paid parental leave.

To further enhance mother and child health:

  • Renew attention on breastfeeding and lactation rights and facilities in workplaces.
  • Focus on child health and wellbeing in designing paid parental leave and its connection to the early childhood education and care system.

To ensure the scheme is well understood by the community, invest in policy communication:

  • Introduce and set aside funds for a new public communications strategy to inform new parents and parents-to-be of the changes.
  • Communicate separately with employers and employer associations.

Consider the important role of employers and the workplace:

  • Encourage employers to top-up paid parental leave to income replacement rates for parents.
  • Consider tax incentives to support employers.
  • Better understand the role of the workplace in accepting fathers’ use of paid leave.
  • Collect data on, evaluate and monitor the use of stay in touch days by employers.