Paid parental leave under a Coalition government

Senior Liberal Party members have come out in support of Tony Abbott's planned parental leave policy, despite opposition from moderate Mal Washer, and from backbencher Alex Hawke, who has called it an "albatross" and called for it to be scrapped. 

The scheme would give women six months of fully paid leave, to a maximum of $75,000 and capped at an annual salary of $150,000. The plan would be financed by a levy on the top companies in Australia - those with taxable incomes of more than $5 million (less than one in 200 businesses). 

Mr. Hawke has been strongly critical of the policy, calling it "ill-suited...to an economic liberal agenda." The Labor party has also been scornful Mr. Abbott's plans, called it a "rolled gold scheme that will see very wealthy women get $75,000 to have a baby while at the same time slashing the money going to low and middle-income families when he abolishes the school kids bonus." 

Dismissing criticisms, Abbott has called the policy a "very important sign that we get it when it comes to the modern family." He has labelled it as an important economic reform that will "keep in our economy some of its most productive workers." 

The plan is not dissimilar to the Gillard government's scheme, which provides up to 18 months of Government-funded Parental Leave pay at the National Minimum Wage (currently $570 per week before tax) for eligible parents. Carers are eligible where their annual income is $150,000 or less, and they have worked at least 330 hours in 10 of the 13 months before the expected date of birth.

You can read more about this topic at The Conversation and in the Sydney Morning Herald. 

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