UPDATED: 2min election cheat sheets: Paid Parental Leave

There’s lots of election talk here, here and here.  It’s clear that this election is interesting even when it’s dull. So, in a bid to outline the major election issues in a quick, easy-to-understand and spin-free Julie Cowdroy is preparing a series of cheat sheets explaining all we need to know on the individual policies in bite size pieces.

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ALP Policy:

• 18 weeks parental leave at the federal minimum wage (currently $569.90 per week)

• Eligible to all who pass a “work test” (worked continuously for 10 out of 13 months before one’s due date and a minimum of 330 hours over the past 10 months)
• Paid to those who earn less than $150,000 per year
• Includes full-time, part-time, casual and self-employed workers so long as they pass the “work test”
• Funded by the Federal Government
• Administered by employers from 1 July 2011 (scheme starts 1 January 2011)
• A mother may transfer PPL payments to the father before the 18 weeks is up, so long as he passes the “work test” and earns less than $150,000 per year
• Does not include superannuation
• If someone chooses to take PPL, the Baby Bonus is forfeited
• Will cost $250 million per annumA more comprehensive explanation of the ALP policy was posted previously on Mamamia. Check it out here.

Coalition Policy:

• 6 months paid parental leave for those who earn $150,000 or less

• The rate is at “full replacement pay” which means a Coalition Government would match your income
• If someone earns less than the current minimum wage, they receive the minimum wage for six months (same as the current Labor Government policy)
• Includes superannuation payments
• Includes full-time, part-time, casual and self-employed workers in the public and private sector so long as they do not earn over $150,000 per annum and pass the same “work test” the Labor Government currently have in place
• Money raised for PPL comes from a 1.5% levy on companies that have a taxable income over $5million a year
• The levy is temporary until the federal budget has been restored to surplus
• The levy affects 3,200 companies out of 750,000 companies (less than 1% of Australian companies) and is considered a productivity measure rather than a burden on big business
• Fathers can take 2 weeks paid parental leave either simultaneously or separately from the mother
• If parents opt for the father to be the primary caregiver, he may take the parental leave, but has to take it at the mother’s wage to encourage mother/baby bonding time at home
• Administered by a Coalition Government, not the employer
• If someone chooses to take PPL, the Baby Bonus is forfeited
• The Coalition promises to start the PPL scheme by 1 July 2012 if elected. The ALP policy will remain in place from 1 January 2011 until it changes.
• Estimated to cost $3.3 billion per year

 

Greens

• 26 weeks funded by the Federal Government

• Includes superannuation payments
• The length should be aligned with the World Health Organisation standard of 6 months
• Regard the ALP policy as a “social welfare payment” rather than “a workplace entitlement,” and therefore cannot be classified as “leave” as there is no guarantee that a mother can return to work.