Date issued: 12 June 2008

If the Australian Government decides to introduce paid maternity leave, it should foot the bill, says CPA Australia.

Business would be burdened with extra costs if required to fund parental leave, placing them under greater financial strain and acting as a disincentive to employing staff, according to a CPA Australia submission to the Productivity Commission inquiry into maternity leave.

'The model recommended by CPA Australia, if  the government decides to implement a mandatory paid  maternity leave scheme, is one which is government funded, nationwide and paid through direct transfer payment rather than through tax incentives,' said CPA Australia business policy adviser Gavan Ord.

'Any proposed implementation of mandatory paid maternity, paternity or parental leave must also be considered within the pending review of the Australian tax system so it can be examined alongside all other government support provided to families'.

Mr Ord said the pressures of introducing a mandatory employer funded paid parental leave scheme were reflected in the preliminary findings of a CPA Australia-supported survey into gender issues in small accounting firms.^*

The survey, conducted in March this year, included questions on paid parental leave and found that it was not offered by the vast majority of firms.

'These preliminary findings show that a move to a mandatory employer-funded parental leave scheme would bring significant additional pressures to bear on small business in terms of increased costs,' Mr Ord said.

Other recommendations in the submission include:

• Australia-wide eligibility for paid parental leave to maintain simplicity
• the scheme should take effect from the date of birth or adoption
• rolling existing payments currently made to new mothers into a mandatory paid paternity leave scheme

CPA Australia examined the paid parental leave models already in place in the OECD nations. in arriving at its recommendations. Its advocated model,  should a form of parental leave become mandatory, is closest to that implemented in New Zealand.

For further information read the Submission on the inquiry into paid maternity, paternity and parental leave.

^* Professors Glenda Strachan and Mary Barrett; ‘Retaining professional accountants skills: women in small accounting firms.’ March 2008

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