• Table of Contents
• Foreword
• 1. Australia’s Paid Parental Leave scheme at a glance
• 2. Why Australia needs a Paid Parental Leave scheme
• 3. What Paid Parental Leave will achieve
• 4. Key outcomes of the Productivity Commission inquiry
• 5. Paid Parental Leave eligibility
• 6. The financial benefits for new parents
• 7. Claiming Paid Parental Leave
• 8. The role of employers
• 9. Interaction with existing leave entitlements
• 10. Implementation
• 11. Government changes to the Productivity Commission’s scheme
• 12. Review and evaluation
• 13. Further information
• Appendix

Australia’s Paid Parental Leave Scheme

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Foreword

The introduction of a Paid Parental Leave scheme in Australia is an historic reform to prepare Australia for the challenges of the future.

The Government scheme will provide greater financial support to families, increase workforce participation and promote early childhood development.

Australia has been one of only two OECD countries, along with the United States of America, which does not have a comprehensive Paid Parental Leave scheme.

A Paid Parental Leave scheme demonstrates the Australian Government’s ongoing
commitment to supporting working families. It reflects our child-centred approach to family policy, which is fundamentally about what is in the best interests of children.

The scheme will give more babies the best start in life. The payment will enable more parents to stay at home to care for their baby full-time during the vital early months of social, cognitive and physical development.

The introduction of a national Paid Parental Leave scheme also encourages women to maintain their connection with the workforce and their careers and is essential to help prepare Australia for the challenges of an ageing population.

The Government is committed to supporting mothers, whether they are in a paid job or at home. The Baby Bonus and Family Tax Benefits will still be available for families not eligible for Paid Parental Leave, and for those who choose not to participate in the scheme.

The Government has been prudent in designing a Paid Parental Leave scheme that is affordable and which minimises impacts on employers, in particular small businesses, in these tough times.

The scheme being introduced by the Australian Government is closely based on that proposed in the Productivity Commission’s Final Inquiry Report Paid Parental Leave: Support for Parents with Newborn Children.

The Australian Government has responded decisively to the Productivity Commission report with the introduction of a balanced and fair Paid Parental Leave scheme in Australia.

Julia Gillard
Deputy Prime Minister
Minister for Education
Minister for Employment and Workplace Relations
Minister for Social Inclusion

Wayne Swan
Treasurer

Jenny Macklin
Minister for Families, Housing,Community Services and
Indigenous Affairs

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