The Federal Government has announced this weekend that it will increase the government funded paid parental leave entitlement to a total of 26 weeks paid leave. The increased entitlement, which will be phased in between 2024 and 2026, is the biggest increase to the Government’s Paid Parental Leave Scheme since it was introduced 11 years ago.
The current government funded entitlement provides parents a total of 20 weeks paid leave following the birth or adoption of a child, including 18 weeks under the Paid Parental Leave Scheme for a primary carer and two weeks of Dad and Partner Pay for a secondary carer. Both entitlements are paid at the national minimum wage, currently $21.38 per hour. The reforms will see an increased entitlement comprised of 24 weeks’ paid leave for a primary carer, and two weeks for a secondary carer. However, a single parent will be able to use the full 26 week payment.
The Government will also increase the flexibility of the scheme from July 2023, to allow parents to take periods of paid parental leave between periods of paid work outside of the home. As before, employers will be able to supplement the Government’s Paid Parental Leave Scheme and Dad and Partner Pay via their own internal parental leave policies.
It is hoped that greater flexibility in using parental leave entitlements will contribute to the reduction of Australia’s national gender pay gap, which currently sits at 14% according to the Workplace Gender Equality Agency. However, some critics have called for greater increases, noting that Australia’s Paid Parental Leave Scheme falls behind that of 31 of the 38 nations party to the Organisation for Economic Co-operation and Development.
This announcement comes shortly after the Federal Government introduced the Anti-Discrimination and Human Rights Legislation Amendment (Respect at Work) Act 2022 to Parliament in late September. If passed, the Bill will reform the Federal anti-discrimination framework to implement further recommendations from the Sex Discrimination Commissioner’s Respect@Work: National Inquiry into Sexual Harassment in the Workplace report.
Included in the proposed reforms is the introduction of a positive duty on employers to eliminate unlawful sex discrimination and sexual harassment (similar to that provided by the Equal Opportunity Act 2010 (Vic) in Victoria) which will be enforced by the Australian Human Rights Commission. This duty is crucial in driving proactive and positive cultural change within workplaces, rather than solely relying on workers who have suffered harassment or discrimination to come forward. Other changes will increase access to justice for complainants of sex discrimination, by removing cost barriers and allowing representative bodies to initiate applications on behalf of individuals.
Further details of the parental leave reforms will be provided in the Federal Government’s budget announcement in late October. Prime Minister Anthony Albanese has foreshadowed, in light of the budget announcement, that “equality for women is at the heart of our vision for a fair go at work. And equality for women will be at the centre of our budget”.
Moores will be closely watching these developments and updating clients in the coming months.
How we can help
For assistance with your organisation’s parental leave policy, please reach out to the Moores Workplace Relations team. Our team is well equipped to provide advice on your obligations and reviews of your internal policies and procedures.
Contact us
Please contact us for more detailed and tailored help.
Subscribe to our email updates and receive our articles directly in your inbox.