Government Paid Mat leave 1st July 2009

[the keg]

Hi All,

My baby is due on the 11th July 2009. Recent information on the news about the Federal Govt introducing 'paid mat leave' in as early as July 2009 has interested me.

Does anyone else have any information about exactly when this will happen or is it going to be fazed in?

If it is to be introduced straight away then i will take me annual leave first from the 1st July and start maternity leave 4 weeks after that so that I dont miss out on getting the payments.

Kel

[Neoma]

Nobody knows at the moment. We will have to wait for the budget tomorrow night

[BrightSparkles]

Everything I have heard is that while it has been annouced that the Gov. has said yes they will do paid leave, it won't come into place until 2011.

But keep an eye on the budget. xx

[fionas]

I was half-asleep at the time but I think they're talking about introducing it from Jan 1 2011 @ 18 weeks minimum wage of about $540 per week provided that the primary carer earns below $150K per year. They reckon they need this long to educate businesses about how to implement it ie. they want businesses to administer the payment even though it will come out of government coffers.

It will replace the baby bonus and Family Tax Benefit B.

[BrightSparkles]

I was half-asleep at the time but I think they're talking about introducing it from Jan 1 2011 @ 18 weeks minimum wage of about $540 per week provided that the primary carer earns below $150K per year. They reckon they need this long to educate businesses about how to implement it ie. they want businesses to administer the payment even though it will come out of government coffers.

It will replace the baby bonus and Family Tax Benefit B.

This is what I heard too.
Paid mat. leave would be for working parents earning less that $150K
BB and FTB would remain in place for non working parents.

[FabFiona]

Here is the official media release - should answer some of the questions...

--

PRIME MINISTER
deputy prime minister
treasurer
minister for families, housing, community services AND INDIGENOUS AFFAIRS





RUDD GOVERNMENT TO INTRODUCE PAID PARENTAL LEAVE


The Rudd Government will deliver an historic Paid Parental Leave (PPL) scheme to support Australian families and prepare Australia for the economic and social challenges of the future.

This government-funded scheme will provide the primary carer with 18 weeks post-natal leave, paid at the adult federal minimum wage (currently $543.78 per week).

The cost of the scheme - approximately $260 million per annum - is a vital investment in improved productivity and workforce participation.

The scheme will not commence until 1 January 2011, giving the community and businesses time to prepare.

Paid Parental Leave will be delivered in a responsible and sustainable way which takes into account the impacts of the global recession.

The scheme will come into effect when the economy is expected to be recovering and the economic outlook improved.

To ensure the scheme is delivered in an affordable way, it will not mandate paid paternity leave at this time and employers will not be required to pay superannuation on Paid Parental Leave entitlements.

Currently, Australia is one of just two OECD countries without a national statutory paid parental leave scheme, along with the United States.

This historic Paid Parental Leave scheme will encourage women to stay connected to their jobs.

This will boost workforce participation which will be essential in meeting the economic and social challenges of an ageing Australian population.

Paid Parental Leave will help Australian families find a better balance between work and caring responsibilities and will allow mothers to spend vital time with their newborn babies.

The scheme is a huge step forward for all mothers and especially for low and middle-income earners who generally have less access to employer-funded parental leave schemes.

In 2007, less than one quarter of women on very low wages had access to paid maternity leave, compared to three quarters on high wages.

The government-funded scheme will be based closely on the recommendations of the final report of the Productivity Commission Inquiry into Paid Parental Leave: Support for Parents with Newborn Children, which will be released with the 2009-10 Budget.

However, the scheme will be targeted so that taxpayers’ funds go where they are most needed.

To ensure the scheme is responsible and sustainable over the long-term, high income primary carers earning over $150,000 will not be eligible.

The Baby Bonus and Family Tax Benefits will continue to be available for mums who choose to stay at home. A stay at home mum with a partner on average earnings will continue to receive around $12,000 in government assistance in the year after the birth of their baby.

However recipients of the Government’s Paid Parental Leave scheme will not be eligible to also receive either the Baby Bonus or Family Tax Benefit Part B.

The Rudd Government is proud to work with Australian mothers, families and businesses to meet the challenges of the 21st century.

[Counting Days]

The Baby Bonus and Family Tax Benefits will continue to be available for mums who choose to stay at home. A stay at home mum with a partner on average earnings will continue to receive around $12,000 in government assistance in the year after the birth of their baby.

However recipients of the Government?s Paid Parental Leave scheme will not be eligible to also receive either the Baby Bonus or Family Tax Benefit Part B.
.

Sounds like the stay at home's will receive more than those who work

[Pretty Butterfly]

Those receiving PML will get almost $10,000 in 18 weeks, the $12,000 is for 52 weeks......

So around $230 per week for SAHM for the year.

[Jennifer13]

Hope you don't mind, fiona, but I'm adding the news release to the News section as well!

[FabFiona]

No worries. I am on a few mailing lists at work for stuff like this, so I'll post others that I think might be relevant.

Cheers,
Fiona

[tattoo_mama]

are they phasing out FTBB altogether? as in if im still a SAHM in 2011 the FTBB wont be around? or is it only if you get pg and choose the paid mat leave?

[Counting Days]

i am sure before 2011 they will have changed their mind a few times

[nikkers37]

well, we were planning to TTC by the end of this year, and fingers crossed we have our first child before the end of 2010! BUT, does anyone think this seems rather abrupt bringing it in straight like that? For me it would make more sense to stagger it, for instance bringing in 4 weeks paid every six months etc etc....
I'm just imagining this sudden massive increase in pregnancies in march/april 2010 and then a swamping of the public hospitals for january 2011! It's going to be ridiculously busy at that time....i for one don't want to be in a busy hospital giving birth at this time...18 weeks pay or not.
I guess because i work for a public hospital i am thinking about what a huge workload this is going to cause!

[tattoo_mama]

nikkers: im not sure if itll make much difference in the amt of births, depends what type of work people have done before getting pg (i assume ppl will have to have workd for thier employer for at least 12 months to qualify, just as at the moment to get unpaid maternity leave u have to have been there for at least 12 months) and it will be instead of baby bonus/ftbb so ppl will weigh up whats a better option for them at the time.

[nikkers37]

hey tattoo_mama, i'm not sure of the exact details, but i remember reading somewhere that you only had to work the equivalent of 1 day a week for 12 months before the birth, or something similar...maybe it was 330 hours? don't quote me!!!
also, the $5000 baby bonus will be incorporated in to the approx $9500 package, so people who give birth in jan 2011 rather than dec 2010 will be better off by about $4500.
thats my understanding...?