The Abbott Government's decision to slash the number of mothers entitled to publicly-funded parental leave was made despite expert advice showing the existing scheme has improved the health of mothers and babies and lifted female workforce participation.
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A comprehensive evaluation by a government-appointed expert panel found the paid parental leave (PPL) scheme, which provides 18 weeks' leave at the minimum wage to most primary carers, was achieving its aims after just three years in operation. An expert involved in the evaluation warns that the government's proposed changes will compromise its success.
The PPL, introduced by Labor in 2011, had three goals: to increase female workforce participation; to improve the well-being of mothers and babies; and promote gender equity and work-life balance.
The expert evaluation, submitted to the Department of Social Services in November, said the PPL was having a "clear effect" of delaying mothers' return to work after the birth of their baby and then increasing the probability of mothers returning to work before the baby's first birthday. It found the existing PPL "increased employers' retention of mothers when they returned to work."
The investigators found the scheme had "produced small, but statistically significant, improvements" in mothers' average physical and mental health. It was also associated with a lift in the proportion of mothers who were still breastfeeding when their child was six months or older. The increase in breastfeeding duration was "consistent across all groups of mothers" except single mothers. The report also found a "small improvement" in babies' average health following the introduction of PPL.
The investigators said the scheme had improved mothers' perceptions of their career prospects and slightly reduced the likelihood that mothers "felt rushed or pressed for time" when their babies were around 12 months old.
All new mothers are now eligible for the scheme but on Sunday the Treasurer, Joe Hockey announced those with access to an employer scheme that is more generous than the government's scheme will no longer have access to government payments. It is expected almost 80,000 new mothers will lose some or all of their government parental leave payments, saving the budget almost $1 billion over four years.
The government commissioned the independent review panel, led by the University of Queensland's Institute for Social Science Research, to conduct a four-stage review of the program between 2011 and 2014.
One of the reviewers, Sydney University professor of employment relations Marian Baird, warned the government's proposed changes could compromise the success of the PPL. She is particularly concerned the changes will pressure many mothers to return to work more quickly.
"We have the evidence, we know the policy is working but now to turn around and change the policy without any evidence of what the impact is going to be is a retrograde step in terms of policy-making in Australia," she said.
Professor Baird said the scheme was originally designed to allow women to "complement" their employer scheme with the government's one. The goal was to help a much larger proportion of mothers get 26 weeks of paid parental leave which is recommended by the World Health Organisation.
