The Abbott government's plan to scale back paid parental leave is a "retrograde step" for working mothers and could affect their health and that of their babies', a Senate inquiry has heard.
Under the plan, nearly 80,000 new mothers would be prevented from receiving $11,500 through the federal scheme because they work for private companies with existing paid parental schemes. It is expected to save the Commonwealth nearly $1 billion over four years.
The Australian Council of Trade Unions and Women on Boards – a group supporting female executives – on Tuesday described this as a "retrograde step" for women in the workplace, as it would force new mothers to return to work earlier, with many unable to afford to take maternity leave as a result.
ACTU president Ged Kearney said most families relied on two incomes, with some mothers also the main breadwinner.
"The financial impact on these families is enormous," she said.
University of Sydney working women researcher Dr Marian Baird said most countries saw such entitlements as a "social investment". She said some would stop working altogether because they no longer saw themselves as valued members of the workforce.
"Australia would be going against the trend by reducing, rather than increasing paid leave available to mothers," she said.
The Australian Nursing and Midwifery Federation said in its submission the plan could also undo health benefits associated with longer maternity leave periods, including lower stress levels and reduced rates of post natal depression.
Member Emily Shepherd is eligible for the paid parental leave scheme because her child is due to be born before its planned start next year. She told the inquiry that this reduced the stress on her and her partner, who both worked full-time, and meant she would be better able to breastfeed her child for 26 months in line with the World Health Organisation's recommended guidelines.
Social Services Minister Scott Morrison has rejected criticisms of the Fairer Paid Parental Leave Amendment Bill, saying that most families that would be affected by its changes had an average household income of $150,000.
It is unclear whether the bill will pass, with Labor, the Greens and some crossbench senators opposed to it.
The Abbott government had initially planned to increase paid parental leave from 18 weeks at the minimum wage to 26 weeks at a woman's full wage - up to a cap. Prime Minister Tony Abbott backed down on this when he failed to get enough support from the party room.
Women on Boards chairwoman Ruth Medd said that more employers provided additional support for women returning to work after the scheme was introduced in 2011, citing petrol company Caltex, which provided employees higher wages to work to cover the cost of childcare.
"The average workplace paid parental leave scheme has increased from six to nine weeks so at least some are playing the game, doing the right thing and realising they need to support their women," she said. "It'd be a great disappointment if the government discouraged employers (from doing this) which may be the effect of this scheme."
Gerard Dwyer, national secretary of the Shop, Distributive and Allied Employees' Association, agreed, saying the scheme had normalised parental leave and been an important bargaining tool for enterprise bargaining agreements.
"There is no country in the world that makes it a disincentive for employers to contribute (to paid parental leave), that's what this bill does."
