Retail industry bodies Australian Retailers Association (ARA) and the National Retail Association (NRA) have welcomed the Federal Government’s boost to Paid Parental Leave (PPL).
The updated legislation will add another six weeks of PPL for families, bumping the total leave payable up to 26 weeks - or six months.
This is for both mothers, who make up a majority of retail sector employees, and fathers. Single mothers will be entitled to the full leave payable.
ARA CEO Paul Zahra said this will offer increased flexibility for new families.
“Whilst the scheme is structured to encourage shared access by men and women, women remain the primary carers of young children and stand to benefit greatly from the move,” Zahra said.
“In time, it will also enable more working dads to take on the role of primary carer so that working mums can return to the workforce sooner, if they wish to. It will also improve confidence and security to single parents that may have no other income support mechanisms.”
NRA interim CEO Lindsay Carroll also commented, saying that tens of thousands of women have had to step back from their careers to focus on their new families.
“But now mothers will have access to more leave and greater flexibility where they can take blocks between periods of paid work,” Carroll said.
“The Government needs to move quickly on the delivery of this initiative, so mothers can get back into the workforce where they will grow and contribute positively to economic activity and tax revenue.
“The NRA believes that the skills' shortage in retail and hospitality could be a thing of the past if more women were able to prioritise their careers.”
Zahra echoed this statement, saying the ARA has called for immediate measures to boost workforce participation.
“Retail is in the midst of a crippling labour and skills crisis, with over 46,000 vacancies within retail currently – a significant increase over the previous quarter,” Zahra said.
“This announcement, alongside some of the positive developments out of the Jobs and Skills Summit, will help improve workplace participation by many under-represented cohorts.”
As well as extending the leave timeframe, the government will maintain “use it or lose it” weeks to encourage and facilitate more dads and partners to access PPL.
The Federal Government will introduce its legislative reforms from July next year. From 1 July 2024, the Government will start expanding the scheme with two additional weeks a year until the scheme reaches its full 26 weeks from July 2026.
Further detail of this measure will be released on federal budget night, October 25.
Prime Minister Anthony Albanese said investing in parental leave benefits the Australian economy.
“It is good for productivity and participation, it’s good for families, and it’s good for our country as a whole,” he said.
“More generous and more flexible paid parental leave rewards aspiration and provides every parent of a new baby with greater choice and better support.”
Minister for Social Services Amanda Rishworth also commented, saying that diversity in the new legislation is a priority
“This will benefit mums, it will benefit dads, it’s good for children, and it will be a huge boost to the economy,” Rishworth said.
“We know that treating parenting as an equal partnership helps to improve gender equality.
“It is important that we have a Paid Parental Leave scheme that supports modern Australian families and that complements other parental leave schemes offered by a growing number of employers.”
Minister for Women and Minister for Finance, Senator Katy Gallagher said that this investment in families would not only boost individual choice but would have flow on benefits to the broader economy.
“Having a child shouldn’t be an economic barrier for families, or indeed act as a handbrake on the broader economy, Gallagher said.
“Right now, this burden is borne disproportionately by women, but we know that good women’s policy is also good economic policy and this decision is evidence of that.”