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  1. #1
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    Default PPL Review

    The department of Social Services just published a review of the current PPL. The consultations happened between Jan and Jun 2013.

    You can find it here
    http://www.dss.gov.au/sites/default/...iew_report.pdf

    It mostly find that the payment must be increased to replacement wage levels or a percentage of replacement wages, and increased from 18 to 26 weeks.

    ETA it also suggests that the gvt should keep finding the national minimum wage component while employers would fund the balance.
    There are suggestions about removing the means testing that discriminates against women with high income especially main or sole breadwinners.

    @kw123 I thought this would be of interest
    Last edited by ExcuseMyFrench; 11-06-2014 at 23:21.

  2. #2
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    Thanks will have a read later! I am assuming that superannuation will also be included? Its so important and so many don't seem to realise that it is. I thinking spreading the cost between Govt and employers makes most sense. The usual response is that it will damage small business and make employers not hire women. I think that is nonsense (especially as, lets be honest, women and men do tend to do different types of work generally). And yes it means there would be cost to small business. But this IS a cost of having a business, so should just be factored in. This is how it works in the UK so I don't see why Australia should be any different, and it could work here. My parents in the UK are small business owners and frequently grumble about this (they have predominately female employees) but they just have to suck it up!

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    For some reason I can never start a new paragraph by hitting enter/return when using the website... annoying!

  4. #4
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    Below are a few extracts from the report that I found interesting :

    > Whether employers should make superannuation contributions in relation to Parental Leave Pay

    The 2009 report by the Productivity Commission which informed the design of the PPL scheme recommended that employers provide superannuation contributions on PLP, but that the implementation of this component of the PPL scheme be deferred for at least three years and be considered as part of the PPL review.
    In submissions to the review stakeholders who commented on the issue were divided about whether superannuation contributions should be made on PLP. Among those who thought the PPL scheme should include superannuation contributions, views were mixed about whether contributions should be funded by employers or the Government.


    > PLP recipient characteristics

    The median age of all payment recipients in 2012-13 was 32.0 years, and the average age was 31.9 years.
    The age profile of PLP recipients is slightly older than that of all mothers. This is expected as older mothers have greater workforce attachment.
    Of all parents who received PLP in 2012-13, 94.8 per cent were partnered.

    Around 54 per cent of recipients who started payment in 2012-13 had an income of $50,000 or less, 40 per cent had an income between $50,001 and $100,000, and around six per cent had an income above $100,000.


    > The cost of Parental Leave Pay

    In 2012-13 the gross cost of PLP (payment outlays with no offsets) was $1,380 million. When the offsets from tax, Family Tax Benefit and Baby Bonus are taken into account, the net cost is around $270 million.


    > High income mothers who are the main or only breadwinner

    A submission to the PPL review from an individual and correspondence received about the PPL scheme indicates that some parents consider the PPL claim hierarchy to be discriminatory.
    …. the paid Parental Leave Act is discriminatory. I think it is inequitable that my husband (with a previous year income of $70K) and I (with a previous year income of $155K) were not eligible for PPL in the first instance, as the income of the mother is used to determine eligibility. A couple in otherwise identical circumstances, where the man earned $154K and the woman $70K, would have been eligible. (Submission 20, p. 5)

    A number of stakeholders have called for a change from the previous financial year individual income test to a post-birth family or partner income test.


 

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