Parents prefer a longer period of paid parental leave rather than a higher income payment and the national minimum wage level of payment is generally perceived as fair.^[1] It is widely agreed by parents that time with family, especially with a newborn, is the ‘number one’ priority and that bonding with a child early in their life is more important than a higher payment.

Time off is number one. Money comes and goes. But that time, if I’m not home and I don’t see my son, say if I miss out [on] like him walking or something, oh man, I’ll be devastated. All the moments you lose, you never get it back. (Andy, middle income, CALD)

I would prefer the time with the child than the money….[It] was good to be able to have the time with him when he was still newborn. (Samantha, single mother, low income)

However, some parents in both low and high income brackets expressed concern over ‘money coming into the bank’ and ensuring bills and payments could be met in the context of rising inflation, interest rates and cost of living. This was a particular concern for families with more than two children, and where the father earned the higher income. Payment at the minimum wage was cited by two families as limiting the amount of paid parental leave time they could use and who could use it.

Because I work for myself and [Lily is] casual at the moment … The leave entitlement isn’t the biggest thing for us. It’s the actual … Just the money amount. At the end of the day, for us, it’s just money coming into the bank. (Jack, low income)

It makes more sense for [David] to return to work to keep bringing in that higher wage than for me to say, “Oh, you take 16 weeks off paid parental leave.” Financially, we wouldn’t have been able to do that. (Alexia, middle income)

A clear message from the majority of families was that they plan their finances and consider the tax implications of their working patterns very carefully to allow for family care in the first 12 months.

Obviously, the money, it does make a difference in the end because you need to support the family, you need to remain fed and you need to remain roofed and clothed and all of those things. But as long as you’re prepared enough leading up to it, you can get by on a couple of weeks of lesser pay. In order to have that time and that experience with the family. And as I keep saying, as a first-time parent, you can’t get that back. (Amy, same sex couple)

In terms of payment, when referencing the paid parental leave payments, many families referred to the money as coming from Centrelink (the government agency that delivers social security payments), that is, they regarded it as a generous welfare payment and did not directly associate it with their employment.

^[1] As at July 2022 the national minimum wage per year was AUD$42,255. According to data provided to the Women’s Economic Equality Taskforce by the Department of Social Services 29.4% of mothers and 14% of dads/partners are on or below the national minimum wage. Source: EDW Paid Parental Leave Scheme Claims Universe, Data Load Version 2, as at 30 June each entitlement year.