'These changes will provide better security and choice for families'
The Australian government introduced on Thursday the bill that will increase paid parental leave to 26 weeks by July 2026.
The Paid Parental Leave Amendment (More Support for Working Families) Bill 2023 wants to add two additional weeks to Australia's current 20 weeks of paid leave starting July 2024.
Under the bill, the government is also seeking to provide each parent with four weeks of reserved leave starting July 2026.
The legislation further introduces a "concurrent leave," where both parents starting 2026 can take four weeks of leave at the same time if they choose to.
Social Services Minister Amanda Rishworth said roughly 118,000 families who receive Paid Parental Leave each year will benefit from the proposed expansion.
"These changes will provide better security and choice for families. They strike the right balance between supporting our working families, encouraging greater gender equality, and supporting greater workforce participation," Rishworth said in a statement.
According to the minister, it will also support participation and productivity over the longer term.
The bill's introduction finalises the government's expansion of the Paid Parental Leave scheme that was initially announced in the October 2022-23 budget.
Business, union reactions
The Business Council of Australia (BCA) welcomed the bill's introduction to Parliament, underscoring that it would make it easier for parents to stay in the workforce.
"Inflexibility in paid parental leave is a barrier to women participating fully in the economy. Removing all barriers in Australia could see an extra 461,000 full-time people enter the workforce and an extra $128 billion a year added to the economy," said BCA chief executive Bran Black in a statement.
According to Black, many of BCA members have already expanded Paid Parental Leave policies by offering up to six months of leave to either parent and removing the primary carer requirement.
"These progressive policies are paying dividends in the hunt for global talent and equalising the role of both parents," the CEO said.
‘Significant improvement’ for women
Meanwhile, the Australian Council of Trade Unions (ACTU) also welcomed the government's bill, calling it a "significant improvement" from the current policy.
"It's not only a good policy for women, but it’s a good economic policy that will boost the economy by supporting working families to share their skills and experience with the workforce," ACTU president Michele O'Neil said in a statement.
O'Neil, however, called for the further expansion of the scheme to 52 weeks, increasing the rate of pay from its low level of the National Minimum Wage, and paying superannuation on parental leave.
"These are all changes necessary to increase women's workforce participation, facilitate more equal sharing of caring responsibilities between men and women, and close the gender pay gap," the ACTU president said.
