Media Release
Tuesday, 9 February, 2010
Government-funded Paid Parental Leave welcome but business still needs help
CPA Australia has welcomed news that the Federal Coalition has adopted a policy of Government-
funded paid parental leave.
“The fact that both sides of politics’ schemes are Government-funded is welcome. Businesses are
already straining under the increased operating costs of a post-GFC environment.
“The incidence where the primary caregivers in Australian households also work have increased greatly
and continue to do so. It makes good economic and social sense to have a workforce which can more
effectively juggle the dual roles of caregiver and breadwinner.”
“Paid parental leave is a necessary reality and is a crucial component of a modern workforce that will
help ensure Australia’s global economic competitiveness in the 21st century,” CPA Australia CEO Alex
Malley said.
“What are also realities are the cost and operational implications for businesses.”
“These include the cost of an increased regulatory burden as well as increased cost and decreased
availability of finance – especially to small to medium-sized enterprises (SMEs).”
Mr Malley warned however that the costs associated with paid parental leave went beyond direct
payment of a parental leave allowance.
“Businesses will have to find and train staff to cover for absences due to parental leave. This is not just
a cost burden but finding the right staff can be very difficult as reflected in the current debate over
skilled migration.”
“This is not an argument against paid parental leave, rather a reminder of the need for governments to
be mindful of the broader ramifications to business which go beyond the cost of a wage or salary.
“What’s also needed are a range of broader business-related initiatives to ensure the continuing health
of the private sector. These include tax and other business incentives, some of which could potentially
be addressed through the Henry Review into Australia’s Tax System.
Media Enquiries: Licardo Prince, External Affairs Executive, 03 9606 9746/0401 777 917
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