Coalition considers introducing six months of parental leave

The Coalition will consider introducing six months’ paid parental leave if it wins the next Federal election later this year, according to reports.

As reported by Fairfax, the scheme has been approved by Opposition leader Tony Abbott, with early childhood education and childcare spokesperson Sharman Stone being given the responsibility to produce the scheme.

The plans come after Labor’s national plan will offer $544 per week for primary carers who are earning less than $150,000 per year, with the payments to continue for 18 weeks as of next January.

While the Coalition’s plans for parental leave have not been estimated for costs, it is expected the scheme will include six months of leave.

Labor’s scheme is a version of one put forward by the Productivity Commission. However, the plans to be introduced in January 2011 will cost just $260 million, down from the Commission’s recommended $450 million.

If the Coalition’s plan includes six months of leave, it would likely cost more than Labor’s own plans.

Additionally, Labor’s parental leave payments will be taxable but will not be subject to superannuation payments. It is unknown whether this will be the case under the Coalition.

Australian Industry Group chief executive Heather Ridout has said she has not examined the proposal in detail, but said she encouraged the Opposition to enter the fray in the childcare debate.

“We’ve had a very long debate about this, and we do have new entitlements coming in. But I think at the same time everybody knows we need reform in this area, we do need to pay for leave and I think there is a lot happening around this topic and rightly so. It is appropriate for the Coalition to enter this debate.”

“What we want is a scheme that works for employers and employees, and has the flexibility to cope with both. We want flexibility for businesses, and of course we support anything that moves in that direction.”

There have been no details released from the Opposition about how such a parental leave scheme would affect SMEs. Recently Abbott said it would be important for any Coalition scheme to avoid disadvantaging small businesses.