The federal government will commit to paid parental leave from January 2011 for those earning less that $150,000 a year, federal Treasurer Wayne Swan says.
Mr Swan, who will hand down his second budget on Tuesday, said the scheme will pay the federal minimum wage for 18 weeks and will be funded by the government, not business.
"This is a very significant reform," Mr Swan told the Nine Network.
"The scheme must be introduced in a measured and responsible way, particularly taking into account a global recession."
He said the early years of a child's life are important for prospects in later life, while the quality of family life is impacted by the quality of work life.
"We have got to get that balance between work and family right, and paid parental leave is an essential reform," he said.
"We are one of only two countries in the western world that doesn't have paid parental leave."
He said the scheme will be of particular benefit to low- and middle-income earners.
"Where the primary carer's income is over $150,000 they won't be eligible," he said.
"We are very mindful that this significant reform must be progressed in a measured and responsible way."
However, the independent senator Nick Xenophon says Australia cannot afford to further delay the introduction of paid parental leave.
Senator Xenophon told Sky News the scheme was long overdue, and should be introduced despite its effect on an already difficult budget.
"I think it's a question of can we afford not to do it right now," he said.
"When you consider the social benefit in giving mums paid maternity leave, I think ... it's a good thing to do right now, irrespective of the fact that things are relatively tough."
While he was pleased that there was now a start date for the reform, Senator Xenophon said he may push for it to be brought forward.
"January 2011 - it's a good start, but let's see whether it can be pushed forward a little," he said.
Senator Xenophon said he also remained concerned that single parents could miss out on planned pension increases.
"It doesn't make sense to me for the government to be giving long overdue increases to senior citizens in terms of pensions, but that sole parents, single mums in particular, will miss out," he said.
"Last time I checked, they still have to pay just as much as everybody else at the checkout for the basic essentials of life and I think there's an anomaly there."
Meanwhile, the opposition says announcing a federal paid parental leave scheme so far in advance may stop employers introducing their own measures in the interim.
"My fear about this being stretched out to 2011 is that the employers that want to continue, or do implement maternity schemes, will just simply pull up stumps," treasury spokesman Joe Hockey told ABC Television.
"Because now they know that the Rudd government with taxpayers money is going to step into the breach, they don't need to do anything."
He said BHP announced a "very generous" scheme last week.
"Who is going to pay for this at the end of the day? This says everything about their budget," he said.
"On the one hand they're handing out cheques for $900 ... and on the other hand they are saying it is going to be a tough budget.
"On the one hand they say we have got to have sustainable budgets into the future, now they are putting promises on the never-never."
However, ACTU president Sharan Burrow says the paid parental leave to be announced comes after 30 years of campaigning by women across Australia.
She said the 18 week paid leave was about "dignity and respect for women".
"If you are an older mum like me, then it's a present for your daughters and granddaughters - because this is all about dignity and respect for women," Ms Burrow told reporters on Sunday.
"It's all about saying, like other countries do, that we value the contribution of women, of their children and of their partners."
Former Democrats leader Natasha Stott Despoja - who tabled the first attempt at paid maternity leave legislation seven years ago - has welcomed the government's announcement that it will be introduced.
However, she said she was disappointed at the delay until 2011.
"I'm thrilled - I welcome the government's commitment to paid maternity leave," she told AAP from Bangkok where she is holidaying.
"The eternal shame of successive governments has been the lack of paid leave for Australian women on the birth or adoption of a child.
"However, I'm frustrated at the slow movement of this debate.
"It's almost seven years to the day that I tabled Australia's first paid maternity leave legislation... which is essentially the model that the government adopted today, albeit means tested and with a delayed start period."
She said the delayed introduction was "like being a little bit pregnant".
"I understand the government's economic excuses but they don't necessarily stand up in the face of billions of dollars of handouts and especially given research recently that show the economics are do-able but also beneficial," she said.
"There's no reason to delay on the introduction of this scheme."
Greens Senator for South Australia Sarah Hanson-Young welcomed the government's commitment but also rejected the delay.
"There can be absolutely no justification for delaying paid parental leave until beyond the next election," Senator Hanson-Young said in a statement.
"At a time when so many mums and dads are feeling the pinch, we need a government-funded paid parental leave scheme in place as soon as possible to give young parents the support they need."
Front page
RSS Feed