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What is the impact of Parental Leave cuts?

With the announcement of a crackdown on paid parental leave, thousands of mums to be will lose out as early as January 2017. It is estimated that 80,000 women a year will be worse off if the new changes are introduced and up to $12,000 worse off. Social Services Minister Christian Porter said more than half the parents who used the scheme, about 90,000 of them, would not be affected by the changes. As it stands a parent with annual earnings of $140,000 can receive a combined government and employee paid parental leave of more than $44,000 which is more than another parent working a minimum wage will earn in a whole year which seem rather unfair. The effects will hit the women who are on low incomes who may have foregone pay rises in leiu of receiving paid parental leave benefits A representative from the Parenthood lobby says the changes would unfairly increase pressure on mothers and families and that ‘This is going to force more women back to work faster than they would have hoped for, faster than they are ready for,’ Will your employees be affected? watch this space, we will keep you updated on all the developments.


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