‘Tired of waiting’: Move to force Labor’s hand on paid parental leave

Independent MPs are challenging the federal government to take a stand on economic change for women by planning a move that will force Labor caucus members to decide whether to support an increase in paid parental leave to 26 weeks.

While the government says it is looking at ways to make the current scheme more flexible, the crossbench will ask Prime Minister Anthony Albanese and his MPs to take a firmer stand on the promises outlined at the government’s jobs summit earlier this month.

Independent MPs Zali Steggall and Zoe Daniel want the government to commit to expanding paid parental leave.Credit: Alex Ellinghausen

They want the current 18-week paid parental leave scheme expanded to 26 weeks, costing $600 million a year, to boost women’s workplace equity.

The pressure over extending the Commonwealth parental leave scheme adds to the debate about government services and how they will be paid for, following Reserve Bank governor Philip Lowe’s comments on Friday that Labor will need to either hike taxes, cut spending or undertake structural reform to meet community expectations.

When parliament returns next week, Independent MP Zali Steggall will introduce a motion in the House of Representatives to extend paid parental leave, while the Greens will introduce their own bill to the senate to expand the current scheme.

The Greens’ bill in the Senate would overhaul the system to give six weeks of leave to one parent, six to the other and a further 14 weeks to be used however the family decides – offering 26 weeks in total. Under their plan, single parents would be able to take the full 26 weeks and the leave would be paid at replacement wage, capped at $100,000 a year, rather than at the minimum wage.

Steggall said the government would lose support among women if it did not live up to the promises at the summit and its own rhetoric before it took power at the May 21 election.

“If a Labor government fails to deliver, I think you’ll see an increase in votes for minor parties and independents because, at the end of the day, I think the Australian people are tired of waiting,” she said.

During the election campaign, Prime Minister Anthony Albanese said Labor would consider expanding paid parental leave in a second term, as “it will be difficult to do in our first term”.

Social Services Minister Amanda Rishworth said the government has put women’s issues “front and centre” since winning office, but while there were good ideas to boost women’s workforce participation the government also has to deal with debt that is forecast to tip over $1 trillion next financial year.

“That means unfortunately we simply can’t fund every good idea that has merit right now,” she said.

“The government is currently considering the specific enhancements to be made to the paid parental leave scheme to ensure it is working in the best way for families.

“We will continue to work to improve the flexibility of the PPL scheme to rebalance care and encourage families to share parenting responsibilities.”

Independent MP Zoe Daniel said every budget was about choice, and there were enough women in parliament that they will keep the focus on expanding paid parental leave.

Deputy Liberal leader and women’s spokesperson Sussan Ley said the government had not listened to jobs summit attendees.Credit: Alex Ellinghausen

“If you’re talking about women’s empowerment, and then you say, ‘it’d be really great to do it except it costs too much,’ I think there’s a collective eye roll across the country from women,” she said.

“It’s a policy choice, and if they want to pull the lever they can.”

The Grattan Institute last year estimated expanding the scheme to offer 26 weeks at minimum wage would cost the budget an extra $600 million a year.

Deputy Liberal leader Sussan Ley criticised the government for not heeding the growing calls to improve paid parental leave.

“With every day that passes, we see further proof that Labor went to their unions’ summit for a photo-op, seeking consensus for a predetermined agenda they were going to implement anyway,” she said.

“There was no room for fresh ideas, or genuine engagement – so many stakeholders attended that summit in good faith, the problem is that the government did not.”

Ley said the previous government had sought to offer families more flexibility with parental leave in its budget proposal to combine the 18 weeks on offer to primary careers and two weeks for the secondary carer into a single pool.

The opposition is open to looking at the merits of any proposals put forward.

Greens Senate leader Larissa Waters and employment spokeswoman Barbara Pocock said there was unanimous support at the jobs summit for improving parental leave but that talk had not been turned into action.

“It’s time we recognised women’s role in our economy. Talking about women and equality is not enough, we must act,” Pocock said.

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