National Foundation for Australian Women
NFAW

Paid maternity leave

During the 2007 election, NFAW campaigned to introduce paid maternity/parental leave in Australia, supporting the right of women not to have to work when they have a new baby. Specifically, they asked for the following:

  • Establish an expert committee to examine and advise on the options to achieve a cost-effective universal system of paid maternity and parental leave for Australian families;
  • Publish the report of the expert committee and
  • Implement the recommendations of the expert committee within two years.

The current government has now asked the the Productivity Commission to look at the economic and social costs and benefits of paid maternity, paternity and parental leave.

The Commission will conduct a thorough examination and provide an opportunity for public participation. The Commission will be asked to report by February 2009. Public hearings will be held and submissions from the public will also be sought, with a report produced for the Government to release publicly.

If you wish to make a submission, or just be kept informed about the inquiry's progress, you can contact the Productivity Commission:
Public Inquiry into Improved Support for Parents with Newborn Children

 NFAW submission to the Productivity Commission

In its formal submission to the Productivity Commission Inquiry into paid maternity, paternity and parental leave, NFAW recommends:

  • A minimum period of six month paid maternal leave
  • Income replacement, rather than a minimalist welfare payment
  • Four weeks paid paternal leave (at paternal wage level)
  • Financing through a mix of Government, employer and employee contributions, comparable to the financing of retirement incomes.

An independent costing by the University of Newcastle of such a scheme, based on the model prepared by Julia Perry, shows that:

  •  In addition to the current Baby Bonus, costs would be in a range of 0.7% - 0.8% of the current wage bill.  These costs could be shared between employers and employees
  • The costing included costs of payroll tax, superannuation, workers' compensation and training costs
  • The costing did not take into account increased savings to Government, nor the benefits to employers of retaining skilled staff and increasing labour force participation.
  NFAW submission to Productivity Commission

 International comparisons

Australia 1 year unpaid parental leave
Austria, Belgium, Canada, Czech Republic Denmark, Finland, France, Germany, Greece Hungary, Iceland, Ireland, Italy, Japan Korea, Luxembourg, Mexico, Netherlands New Zealand, Norway, Poland, Portugal Slovak Republic, Spain Sweden, Turkey, UK Statutory entitlement to maternity leave, paid at more than 50% of earnings (in most cases up to a ceiling)
USA No national entitlements, but California, Hawaii, New Jersey, New York and Rhode Island provide payments.

Maternity/parental leave milestones in Australia

1973 Paid maternity leave introduced for Commonwealth public servants (12 weeks plus 40 weeks unpaid leave) under the Maternity Leave (Commonwealth Employees) Act 1973. This was intended to be a ‘pace-setter’ to be emulated by the private sector.
1979 The Australian Conciliation and Arbitration Commission handed down the Maternity Leave Test Case providing Australian employees with the right to 52 weeks unpaid maternity leave. This has continued in subsequent forms of Australian Industrial Relations legislation.
1979 The United Nations General Assembly accepted the Convention on the Elimination of all Forms of Discrimination Against Women (CEDAW) resulting in an international discussion of a right to paid maternity leave as a fundamental human right.
1980 Australia signed the International Convention on the Elimination of All Forms of Discrimination Against Women - CEDAW (ratified in 1983).
1984 Federal Sex Discrimination Act 1984 (Commonwealth): reflecting Australia’s international obligations under CEDAW and ILO Convention 1958 (ILO No 111), both of which denote the importance of a workplace free from discrimination.
1999 HREOC recognises the importance of paid maternity leave to Australian women and recommends a review of funding options to assess the viability and consequences of introducing a national scheme in its report .
2000 The ILO revised the Maternity Protection Convention, recommending 14 weeks paid leave, two weeks longer than the standard set in 1952. Australia, New Zealand and the USA were the only ILO countries that refused to ratify this convention.
2002 Unpaid parental leave in Australia was extended to cover casual employees (previously legislated in NSW and Queensland)
2002 New Zealand introduced paid parental leave.
2002 HREOC recommended Government fund a national paid maternity leave scheme
2004 Australian government introduced the one-off Maternity Payment of $3,000 to replace Maternity Allowance and the Baby Bonus.
2006 The Maternity Payment was increased to $4,000.
2007 HREOC recommended a national paid maternity leave scheme be funded by the federal Government

Results of the Newspoll paid maternity leave study

Are you in favour of paid maternity leave? YES 78% men and 75% of women
YES 89% of 18-24 year olds
YES 77% of 25-34 year olds
Are you in favour of funding for a paid maternity leave scheme being shared between Australian employers, workers and the Federal Government YES 80% of men and 76% of women
YES 84% of 18-34 year olds
YES 79% of married people and 76% of people not married
YES 80% of people in full-time employment
YES 78% of people not employed at all
Do you agree that the most important thing for a baby in its first year of life is to have the full-time care of at least one parent YES 93% men and 93% of women
YES 93% 18-34 year olds
YES 95% 50+ year olds
YES 93% of married people and 94% of people not married
Do you agree that more needs to be done in Australia so that mothers can spend more time with their newborn babies YES 85% men and 84% of women
YES 88% 18-34 year olds
YES 85% people in full-time employment
YES 86% of people not employed at all
Do you agree that financial pressure means that many new mothers have to return to work too soon after having a baby YES 81% of men and 84.4% of women
YES 84% of 18-34 year olds
YES 86% of 35-49 year olds
YES 86% of people in full-time employment
YES 78% of people not employed at all
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