Maternity leave scheme put on hold

The Federal Government has put its paid maternity leave scheme on hold. Finance Minister Lindsay Tanner confirmed there will be no funding for the scheme in next year’s ravaged federal budget.

The Federal Government has put its paid maternity leave scheme on hold. Finance Minister Lindsay Tanner confirmed there will be no funding for the scheme in next year’s ravaged federal budget.

The plan, recommended by the Productivity Commission, would have provided government funding for 18 weeks of maternity leave pay at minimum wage rates, although employers would be forced to continue providing superannuation contributions.

Council of Small Businesses of Australia chair Bob Stanton argues scrapping the scheme will leave SMEs better off.

“Small business had supported the concept of paid maternity leave as long as it was fully funded by government. When it made the announcement it was going to consider bringing in paid maternity leave, but all businesses were going to have to pay it and claim it off the ATO and whoever, and they were still going to have to cover superannuation and guaranteed payments, we did not agree with the decision on that at all.

“Scrapping the thing altogether is a relief for small business,” he says, but argues the concept is still good in theory.

But the Government has come under criticism from Federal Sex Discrimination Commissioner Elizabeth Broderick, who says the scheme should remain.

“A paid maternity leave scheme can only provide a positive impact on the economy, particularly over the long term.”

Paid maternity leave is just one Government program to come under the axe. While the Government says it will keep all election promises, any proposals made afterwards will likely be scaled back.

Related stories:

• Taxpayers to fund 18 weeks of parental leave, but there’s a-catch for SMEs
• Business Information: Maternity Leave