An interim report submitted by the Productivity Commission has proposed the Federal Government foot the bill for 18 weeks of parental leave for new mothers and two weeks leave for new fathers. It recommends a national taxpayer-funded scheme where recipients receive the minimum weekly wage for the duration of the leave.
“Our proposal is designed to deliver three main goals: better child and maternal welfare; greater workforce participation by women; and improved work-family balance and gender equity,” said commissioner Robert Fitzgerald. “The proposed measures give immediate support to parents of newborn children in the paid workforce, but ultimately benefit all Australians.”
Other proposals include a maternity allowance for mothers not eligible for parental leave, replacing the current $5,000 baby bonus.
The scheme will cost an additional $450 million from the government, with businesses contributing around $74 million a year through superannuation.
The commission’s final report is due in February 2009. In the meantime, it is seeking responses to the draft report:
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