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CareforKids.com.au July 3, 2013
child care
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26 weeks paid parental leave
What will Kevin do?

parental leaveWith all the political shenanigans over the last week, there may well be more twists and turnarounds in the offing when it comes to child care and related policies concerning working parents.

One particular policy that's going to require much deliberation all round is Paid Parental Leave.

The current scheme, introduced by Labor, pays the minimum wage (currently $622 per week) for up to 18 weeks and is taxpayer funded.

Tony Abbott's proposed scheme will pay a parent's regular wage (up to $2,876 per week) plus super for up to 26 weeks and is funded by a 1.5 per cent levy on companies with taxable incomes above $5m. Which, of course, most working mums and dads will agree is brilliant.

This leaves Labor in the awkward position of opposing a scheme that would introduce a more generous entitlement for working women.

So what about the rest of the world? All European and other OECD countries (except the US) have paid parental leave. Most schemes meet between 80 and 100 per cent of the parent's wage, the majority for 20 weeks or more. They do this through a social insurance system, funded by a levy on the wage bill.

Julia Perry of the Sydney Morning Herald said that Australia's employment system must recognise that child-bearing is an essential contribution to society, not a financial crisis.

The UK's papers are also commenting on the issue, not really quite getting what all the fuss is about. Australian journalist and broadcaster, Andie Fox also writes for The Guardian in the UK and summed up the dilemma as follows:

"As the debate around Abbott's parental leave scheme intensifies, it is worth remembering this: there are flow-on costs, but also wider benefits to be drawn from helping families. In terms of global trends, leave for parental needs isn't associated with being economically uncompetitive. In fact, it is precisely the opposite".

As Julia Perry in the SMH said, it's nonsense to claim Australia is unable to afford such a scheme. To do so claims we cannot afford a fair and basic start to life for babies and families.

The quality of a country's paid parental leave scheme is indicative of a modern developed economy that is fair and inclusive.

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