Chesters lauds parental leave reforms

A right not a luxury: Member for Bendigo Lisa Chesters, pictured with Luke Cherry from the Australian Services Union, said caring for family should never come at the expense of financial security later in life. Photo: SUPPLIED

FEDERAL Member for Bendigo Lisa Chesters has welcomed reforms to the Paid Parental Leave allowance, which came into effect on 1 July and increased the amount of leave available to families to 24 weeks.

The weekly payment rate increased from $915.80 to $948.10 in line with the increase to the National Minimum Wage, resulting in a total increase of $775.20 over the span of the entitlement.

The amount parents can access at the same time also increased from two to four weeks.

Additionally, a 12 per cent superannuation contribution will now be paid on government Paid Parental Leave.

The 12 per cent endowment, based on the increase to the Superannuation Guarantee that also started on 1 July, will be paid as a contribution to recipients’ nominated superannuation fund.

Ms Chesters said taking the opportunity to spend time with your newborn should not be a luxury- it’s a right everyone in the Bendigo electorate deserves.

“Increasing Paid Parental Leave to 24 weeks and paying super on that leave sends a powerful message – caring for family should never come at the expense of your financial security later in life,” she said.

“This milestone change in how (it’s) delivered in Australia will help bridge the gap in super outcomes for women and men.

“It’s a step toward a more equal Australia.”

Minister for Social Services Tanya Plibersek said investing in more generous and flexible Paid Parental Leave is a no-brainer.

“For the first time ever, superannuation will be paid on Paid Parental Leave because Australian women told us they were worried about poverty in retirement and were sick of being penalised for parenting,” she said.