Parents set to lose up to $11k in paid leave changes

NEW parents stand to lose between $4000 and more than $11,000 if cuts to the Paid Parental Leave scheme go ahead.

NEW parents stand to lose between $4000 and more than $11,000 if cuts to the Paid Parental Leave scheme go ahead.

Brisbane Times reports analysis by the Women and Work Group at University of Sydney, commissioned by Fair Agenda and Young Women's Christian Association, found the Commonwealth's proposed changes would leave parents working in retail, health and education worse off.

The government plans to cut its parental leave contribution to parents from July if the negotiated employer-paid leave is equal to or greater than the Commonwealth scheme.

"The federal government's proposed scheme is regressive and the analysis shows it will have a negative impact on lower paid women," the report's authors Professor Marian Baird and Dr Andreea Constantin said.

"Women who are in normal, but low paid jobs, or part-time work with slight benefits from employers will be financially penalised.

"These scenarios show that the loss to women in these critical jobs ranges from $4329.72 to $11,826."

The Federal Government says the change will bring an an end to "double dipping".

The move is expected to impact about 80,000 parents, most of which by far are women, and save the Commonwealth nearly $1 billion over four years.

The present government scheme, originally designed to top up employer schemes to ensure mothers could spend at least six months at home with their infant, provides 18 weeks of paid leave at the minimum wage - about $650 a week - to a maximum of just over $11,500.