Shocking analysis shows paid parental leave cuts will hit nurses, ambos, teachers and retail workers hard - Women's Agenda

Shocking analysis shows paid parental leave cuts will hit nurses, ambos, teachers and retail workers hard

Nurses, ambulance service workers, teachers and retail workers are likely to be hit hard if the Senate approves the government’s proposed cuts to paid parental leave – that’s what new modelling released yesterday by Fair Agenda and YWCA Australia has shown.

The analysis – conducted by the Women and Work Group at the University of Sydney – shows that women in these jobs can expect to lose between $4,329 and $11,826 if the government’s cuts take effect.

That’s a lot of money for a primary carer that’s trying to make ends meet while they spend critical weeks at home with their newborn – healing after birth, feeding and helping their new baby along key development milestones. In fact, it’s the equivalent of 4 weeks or more of average costs for the families in the scenarios modelled in this new report.

And the modelling shows that if the government’s cuts take effect, women in the situations modelled would be left with only enough income to cover the expected costs for families like theirs for 7 – 12 weeks. That’s less than half of the 26 weeks experts recommend as minimum leave time for new parents – to ensure good health and welfare outcomes for newborns. (That’s the same 26 weeks our Prime Minister was arguing so passionately for at the last election, because as he rightly argued, “for new families, there is no ‘leave’ from mortgages, power fuel bills.”)

Here’s what the new modelling shows:

  • A full-time ambo living with her partner and children in Rocklea, Queensland would lose $11,826. She would be left with leave payments that would cover just 7 weeks of average weekly costs for a family like hers – that’s 19 weeks short of the recommended 26 weeks leave time.
  • A woman working part-time as a teacher and living with her partner and child in Adelaide, the cut would be $11,520. This would leave the new mum with the equivalent of just 7 weeks of average living expenses for this family, again 19 weeks short of the recommended 26 weeks.
  • A new single mum working full time as a cashier for Woolies and living in Burnie, Tas would lose $4,329 and her new cut parental leave entitlement would be the equivalent of just 12 weeks of expected living expenses for a family like hers. That’s 14 weeks less than the 26 week period experts recommend a new mum spend at home with a new baby.
  • A nurse working part-time and living with her partner and newborn in Sale, Victoria would lose $7,200 – or 4 weeks of her average living expenses. She would be left with leave payments equivalent to 7 weeks of living expenses for a family like hers – that’s 19 weeks short of the recommended 26 weeks.

This kind of financial hit for new parents who are trying to make ends meet and spend quality time with a new child in the critical early months, and as they grow, would be devastating – for families, and for women. Because we know 99% of those currently accessing paid parental leave are women. As Professor Marian Baird, co-author of this week’s report has pointed out – we’re facing an 18.8% pay gap nationally. And we know that economic disparities in women and men’s working lives often start at motherhood. By cutting the government’s guaranteed paid parental leave (which was always designed to be used in combination with employer leave, to help more primary carers spend the recommended 26 weeks at home) we can expect many women will be forced to choose between financial stress, or going back to work early to make sure they can make ends meet.  

Fair Agenda member Belinda put it best when she said:

“Seven years ago my partner and I had our first baby — before there was any access to government maternity leave. I vividly remember the stress of being on the phone to the bank, baby on my lap, crying, trying to negotiate loan repayments on our small home. All too soon we ran out of money. I was forced to stop breastfeeding, and had to go back to work when my son when he was just 16 weeks old. I was sleep deprived and exhausted, a shattered mess.

Fast-forward to this year and I’ve just returned from maternity leave, to a role at the University of Melbourne – at a job I chose because of its parental leave policy. Being able to top up the government’s parental leave payments with payments the University offers as part of its employment contracts made all the difference. We could live frugally with me on leave for 9 months. My family could just keep up with bills while I cared for my new baby daughter.”

The good news is – we can still stop these devastating changes coming into effect.

The Senate has the power to decide whether or not to approve these cuts – and with the Greens and Labor already committed to vote against, the future of paid parental leave – and the tens of thousands of mums who will be hit hard by any changes – is in the hands of the Senate cross bench – Senators Lambie, Muir, Lazarus, Wang, Xenophon, Madigan, Day and Leyonhjelm.

They have a critical decision to make – one that could very well change the lives of tens of thousands of women and families. Can you help show them just how much community members are concerned about these cuts? Join the community campaign at www.fairagenda.org/ppl. 

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