Site navigation

Change font size: SmallerLargerReload

Sex Discrimination navigation

Back to Table of Contents

Valuing Parenthood - Options for Paid Parental Leave: Interim Paper 2002

Appendices

Appendix A: Technical Appendix

A.1 Introduction

This Appendix sets out currently available information describing women's labour force participation and the ways in which women combine work and family responsibilities in Australia. The Appendix also includes information about existing maternity and parental leave arrangements to provide a background to discussing any future paid maternity leave scheme.

A.2 Statistical overview

There remains a serious lack of statistical information available about maternity, family responsibilities and work arrangements. As can be seen below, some of the available research is also outdated and limited in scope.

A.2.1 Women, work and children in Australia

A.2.1.1 Women and work
A.2.1.2 Women and childbirth
A.2.1.3 Women, work and children
A.2.1.4 Return to work after childbirth

A.2.2 Access to maternity and parental leave

A.2.2.1 Unpaid Parental Leave
A.2.2.2 Paid Parental Leave

A.3 Parental leave: industrial arrangements

A.3.1 Introduction

This section sets out current parental leave arrangements in Australia. It refers to parental leave because most existing arrangements for unpaid leave, and some for paid leave, provide for parental rather than maternity leave.

Section A.3.2 looks at current unpaid parental leave provisions in Australia. Attention is given to data on the take up rates and the average duration of parental leave.

Section A.3.3 provides an overview of available information on paid parental leave.

A.3.2 Unpaid parental leave

A.3.2.1 Current arrangements for unpaid parental leave

Maternity or accouchement leave provisions have existed in the public sector since 1973 with the enactment of the Maternity Leave (Commonwealth Employees) Act 1973. Australia's national standard of 12 months unpaid maternity leave was first introduced into federal industrial awards following the Maternity Leave Test Case in 1979. [258] The entitlement to leave was extended to adoptive mothers in 1985 [259] and to natural and adoptive fathers (on a shared basis) in 1989. [260] This standard is now established in Commonwealth legislation.

The Workplace Relations Act 1996 is the primary legislative instrument at federal level which regulates employee entitlements. Under the Workplace Relations Act, permanent full time and part time employees who have 12 months continuous service with their employer have a minimum entitlement to 52 weeks of shared unpaid parental leave following the birth or adoption of a child. Except for one week, parents cannot take leave simultaneously as it is designed for the primary care-giver. Employees taking unpaid parental leave have a right to return to the position they held prior to taking leave, or to one similar in status. [261]

State legislation generally mirrors the federal provision. Legislation in two States, Queensland and New South Wales, also covers casual employees who have regular/continuous service with one employer.

In May 2001, an AIRC decision granted access to unpaid parental leave to federal award-covered casual employees employed on a 'regular and systematic basis for several periods of employment or on a regular or systematic basis for an ongoing period of employment during a period of at least 12 months, and has a reasonable expectation of on-going employment'. [262] These new provisions will be inserted into federal awards on application by the award parties on an award-by-award basis.

Generally speaking, this minimum entitlement does not distinguish widely between maternity, paternity and adoption leave. Parental leave entitlements allow either the mother or the father to take leave as they determine between themselves. This contrasts with arrangements in many of Australia's top 20 trading partners and the majority of OECD member countries, where a designated period of maternity leave is followed by further entitlements to parental or family leave, which can be taken by either parent. [263]

Originally maternity leave entitlements did require a compulsory period of maternity leave, generally six weeks before and six weeks after the birth. As HREOC's Pregnant and Productive Report observed, the requirement for a pregnant employee who is willing to do her job to commence maternity leave at a specified time is considered discriminatory. [264] While it is recognised that a period of leave generally will be taken, it is up to women to decide on the period of leave they require. For some women, in the absence of paid leave, this decision may unfortunately be made largely on financial grounds.

The compulsory period of leave was removed from the standard federal award clause during the Award Simplification Process, [265] however some awards, enterprise agreements and statutory provisions may still provide for a compulsory period of leave. [266] Federal legislation and some State legislation continues to provide additional entitlements that recognise the different circumstances of pregnancy. These include

These provisions recognise that women, during pregnancy, have certain needs to be accommodated. They recognise the different circumstances of pregnancy and operate to ensure that women are not disadvantaged because of their child bearing role.

A.3.2.2 Employees eligible for unpaid parental leave
Background

The 1988 AIFS study based on a survey of 2 012 women who gave birth in 1984 found that 76 per cent of those women employed during pregnancy (921 or 46 per cent of total sample) were eligible to take maternity leave as they were permanent employees with more than 12 months service. [269]

The Australian Living Standards Study (ALSS) conducted in 1991 - 1992 found that 75 per cent of women in its full time employee sample were eligible for parental leave. Some 47 per cent of full time male employees in the sample indicated that they were eligible for parental leave, while the number of eligible part time females was less than 40 per cent. [270] Part time employees' lack of eligibility was most likely due to the high level of part time employees that worked on a casual basis. For men, lack of eligibility reflects delays in implementation of the 1989 Parental Leave decision and the absence of a statutory entitlement until 1993.

A recent ABS survey of women in New South Wales estimated that 154 900 women aged 18-54 with a child under the age of 15 had taken unpaid maternity leave in the last five years. [271] ABS statistics on Victoria found that 44 per cent of women who took a break from employment to have a child took maternity leave. [272]

Current eligibility for unpaid parental leave

Current labour force data allow for an estimation of employees eligible for unpaid parental leave based on 12 months service with their current employer. Assessment of eligibility should include casual employees as the entitlement is gradually being extended to employees under federal awards, and in States and Territories. [273] Nonetheless, some casual employees may fall outside the definition of 'regular and systematic employment' and as a consequence not be eligible for leave.

Table A.1 shows that, based on the length of time with their current employer, about 80 per cent of permanent employees, both male and female, would meet the statutory requirement of 12 months employment for parental leave. A little over half of all casual employees would also meet the basic length of service requirement. [274]

Table A.1: Length of time with current employer, permanent and casual employees by gender, Australia, November 1998 (per cent)

 
Full time permanent employees
Part time permanent employees
Full time casual employees
Part time casual employees
Males
Less than 1 year
16.1 %
26.3 %
35.8 %
53.2 %
1 year or more
83.9 %
73.7 %
64.2 %
46.8%
Total
100 %
100 %
100 %
100 %
 
Females
Less than 1 year
18.0 %
16.1 %
41.6 %
38.7 %
1 year or more
82.0 %
83.9 %
58.4 %
61.3 %
Total
100 %
100 %
100 %
100 %

Source: ABS 6254.0 Career Experience, Australia November 1998, 10-11.

A.3.2.3 Unpaid parental leave take up rates

Eligibility for leave does not provide a reliable guide to the numbers of employees taking parental leave. To start, the number of births in any year is significantly less than the number of employees. For example, there were just under a quarter of a million births in 2000 (including births to women not in the labour force) compared to approximately nine million employed persons. [275]

Added to this is the fact that women and men may choose to resign from employment or take other forms of leave rather than take parental leave for a number of reasons, such as preferring to concentrate solely on family responsibilities. In addition, although both parents may be eligible for leave, usually only one person in a couple can take parental leave at any given time.

The 1988 AIFS study found that 57 per cent of women employed during pregnancy who were eligible for unpaid maternity leave actually took this leave. [276] Eligibility for maternity leave in this context relates to eligibility requirements such as working continuously for the same employer for 12 months and being employed on a permanent, rather than temporary or casual, basis. It is reasonable to argue that take up rates may have increased since the 1980s as women's labour force participation increased, anti-discrimination provisions were implemented, the relative novelty of maternity leave subsided, and, more recently, since unpaid parental leave has been extended to casual employees under certain circumstances.

A.3.2.4 Duration of unpaid parental leave

While the statutory maximum is 12 months, parents have a choice about the length of leave that they take. [277] Data on the actual duration of leave taken are scant. This section of the paper sets out available data.

Older studies, such as the one conducted by AIFS, found that 73 per cent of women taking maternity leave returned to work within 18 months. About 65 per cent of women who were eligible for and took maternity leave returned to work with the same employer within the 12 month statutory period. [278] In this survey, male partners of women were asked about the leave they had taken at the time of the birth. On average, male partners took 9.7 days and this was most likely to be taken as recreation leave. [279]

Table A.2: Duration of breaks from the workplace of employed people who had taken a break from work in the last six years when their youngest child was born.

Duration of leave Percentage of women Percentage of men
less than 6 weeks 8.33 96.5
6 weeks to less than 3 months 11.51 2.1
3 months to less than 6 months 18.66 *
6 months to less than 12 months 30.64 *
12 months or more 27.10 *

* subject to sampling variability too high for most practical uses.
Source: ABS 6254.0 Career Experience November 1998, 23.

This ABS survey referred to in Table A.2 involved 232 employed mothers with children under six years. It found that 72 per cent of these women had returned to work within a year of the birth of their youngest child. [280] Almost 60 per cent took more than six months leave. Note that the proportion of all women who are working within a year of the birth of their youngest child is likely to be significantly lower than indicated, as this survey did not include women who were not employed at the time of the survey and women who did not return to work within six years of the birth.

For the vast majority of men any break taken was for less than six weeks and most took some form of paid leave. [281] It is most likely that this was paid annual or long service leave.

Industry variations are of course likely. For example the Shop Distributive and Allied Employees Union estimates that 90 per cent of its members who take up unpaid maternity leave take the full 12 months. [282]

A.3.3 Paid maternity leave

A.3.3.1 Introduction

While minimum maternity leave entitlements provide for unpaid leave, a proportion of Australian employers also provide some form of paid maternity or parental leave. Entitlement to such leave may be available under awards, enterprise agreements or individual agreements, company policies or legislation covering public sector employees. This section considers available data on the incidence of paid maternity leave across the Australian workforce. Information on paid paternity and adoption leave has also been included where available, to provide a more comprehensive view of existing paid parental leave arrangements. Each of the key nationwide surveys are considered. There are also a number of State based surveys, including ABS surveys, which have not been included here, however none of these State surveys are conducted on a regular basis.

A.3.3.2 The 1995 Australian Workplace Industrial Relations Survey (AWIRS 95) [283]

AWIRS 95 is a national survey of workplaces with 20 or more employees, that includes information about workplaces and employees. A structured questionnaire was used to survey 2 001 workplaces. This sample represents a population of about 37 200 workplaces, employing 3.6 million employees. Workplaces were selected from each State and Territory, and cover all industries except agriculture, forestry and fishing, and defence. AWIRS was also conducted in 1990, but has not been conducted again since 1995. The AWIRS database is managed by DEWR.

A limitation of AWIRS 95 for current analysis is that it relates to the period prior to the introduction of the Workplace Relations Act 1996 (Cth), and hence to some extent represents a different industrial context.

AWIRS 95 made the following findings.

Table A.3: Paid maternity and paternity leave in workplaces with 20 or more employees, 1995
Paid paternity leave
Paid paternity leave
Workplace characteristics
% workplaces
% employees
% workplaces
% employees
All workplaces
34
36
18
18
Employment size
20-49
32
32
18
18
50-99
37
38
18
19
100-199
32
31
17
18
200-499
30
30
14
14
500 or more
38
44
11
13
Sector
Private
23
24
13
12
Public
59
57
31
23
Industry
Mining
29
28
11
10
Manufacturing
19
22
8
10
Electricity, gas and water supply
36
30
23
22
Construction
15
19
12
13
Wholesale trade
18
12
10
8
Retail trade
20
18
11
11
Accommodation, cafes and restaurants
21
21
7
8
Transport and storage
26
23
14
11
Communication services
87
93
26
33
Finance and insurance
38
26
24
20
Property and business services
23
27
7
11
Government administration
54
43
26
16
Education
66
73
43
38
Health and community services
48
48
23
12
Cultural and recreational services
31
43
22
27
Personal and other services
43
40
31
26

Source: AWIRS 95 main survey employee relations management questionnaire in Alison Morehead et al Changes at Work: The 1995 Australian Workplace Industrial Relations Survey Longman Melbourne 1997, 451.

A.3.3.3 Workplace Agreements Database (WAD) [290]

WAD includes all approved Certified Agreements under federal legislation since January 1997. This database is managed by the Department of Employment and Workplace Relations (DEWR).

A limitation of WAD is that it only records formal arrangements included in Certified Agreements. This means that provisions included in underlying awards, earlier agreements or personnel practices are not recorded, thus potentially underestimating the extent of family friendly provisions available in workplaces. In addition, Certified Agreements are not evenly distributed across industries.

In particular, CAs [Certified Agreements] are over-represented in the manufacturing, construction, transport and storage and government administration and defence industries and under-represented in the wholesale trade, retail trade, property and business services and education industries. [291]

For the period January 1997 to June 2001, DEWR analysis of WAD found

Table A.4: Periods of paid maternity leave and paid paternity leave in federal Certified Agreements (CAs) 1997-2001

Number of CAs % of CAs
Period of paid leave Maternity Leave Paternity Leave Maternity Leave Paternity Leave
Days: 1
1
8
#
1
Days: 2
13
29
1
3
Days: 3
7
33
0.3
4
Weeks: 1
196
766
8
82
Weeks: 2
913
27
39
3
Weeks: 3
24
11
1
1
Weeks: 4
73
19
3
1
Weeks: 5
2
3
0.1
0.3
Weeks: 6
500
37
21
4
Weeks: 7
2
1
0.1
0.1
Weeks: 8
21
*
1
*
Weeks: 9
24
3
1
0.3
Weeks: 10
1
*
#
*
Weeks: 12
539
8
23
1
Weeks: 13
6
*
0.3
*
Weeks: 14
4
*
0.2
*
Weeks: 16
1
*
0.04
*
Weeks: 18
3
*
0.1
*
Number of CAs with Paid Leave
2330
936
As a % of all CAs
7
3

Source: Department of Employment and Workplace Relations Workplace Agreements Database dated 3 April 2002 unpublished data for Period 1/1/97 to 31/12/01
* no incidence recorded
# less than 0.05 per cent

Table A.5: Incidence and Duration of Paid Maternity Leave By Industry, 1997 - 2001
INDUSTRY 1997
Incidence of Federal Agreements
%
(average wks
per yr)
1998
Incidence of Federal Agreements
%
(average wks per yr)
1999
Incidence of Federal Agreements
%
(average wks per yr)
2000
Incidence of Federal Agreements
%
(average wks per yr)
2001
Incidence of Federal Agreements
%
(average wks per yr)
Mining
*(*)
*(*)
*(*)
*(*)
5(12)
Manufacturing
2(5)
3(4)
4(4)
5(5)
5(4)
Electricity, Gas and Water Supply
11(11)
5(13)
7(11)
28(8)
38(12)
Construction
2(1)
2(2)
2(2)
1(2)
2(1)
Wholesale Trade
7(9)
*(*)
3(6)
9(4)
33(1)
Retail Trade
3(5)
1(6)
4(7)
5(7)
3(4)
Accommodation, Cafes and Restaurants
*(*)
*(*)
*(*)
2(6)
5(4)
Transport and Storage
2(8)
1(7)
*(*)
4(8)
2(7)
Communication Services
11(6)
*(*)
29(8)
21(8)
20(12)
Finance and Insurance
24(7)
37(7)
12(5)
34(7)
35(7)
Property and Business Services
*(*)
3(8)
6(8)
9(8)
6(9)
Government Administration and Defence
4(9)
16(9)
15(9)
20(10)
34(10)
Education
43(11)
32(9)
32(9)
53(10)
44(11)
Health and Community Services
8(7)
57(2)
51(2)
37(3)
23(6)
Cultural and Recreational Services
2(9)
6(10)
19(9)
24(9)
38(10)
Personal and Other Services
*(*)
2(6)
12(8)
14(11)
8(6)
Agriculture, Forestry and Fishing
*(*)
*(*)
9(12)
7(-)
*(*)
TOTAL
4(7)
10(4)
9(4)
6(7)
11(7)

Source: Department of Employment and Workplace Relations Workplace Agreements Database dated 3 April 2002 unpublished data.
* industry agreements recorded no paid maternity leave provisions
- industry agreements recorded no female employees

A.3.3.4 Equal Opportunity for Women in the Workplace Agency (EOWA) Data [298]

EOWA collects data on paid parental leave as part of the reporting process under the Equal Opportunity for Women in the Workplace Act 1999 (Cth). Organisations in the private sector with over 100 employees are required by the Act to provide an annual report on the equal opportunity programmes that are provided within their organisation. Data on paid parental leave were collected through telephone conversations between EOWA assessors and the reporting organisations. EOWA's predecessor, the Affirmative Action Agency, collected similar data through surveys of reporting organisations.

In 2001, 2 541 organisations reported to EOWA. 2 104 organisations were surveyed and 92 per cent (1 935) of these organisations responded to the questions on paid maternity and paternity leave. [299]

For 2000-01, EOWA data indicated the following.

A.3.3.5 Agreements Database and Monitor (ADAM) [310]

ADAM is a database of registered Certified Agreements. It contains information on over 9 500 Certified Agreements in the Federal, New South Wales, Queensland, Western Australian and South Australian jurisdictions. It also contains over 1 200 federal Australian Workplace Agreements (AWAs). [311] The database is managed by Australian Centre for Industrial Relations Research and Training (ACIRRT).

ADAM shows the following.

Table A.6: Incidence of paid maternity leave provisions in currently operating Certified Agreements
% agreements
All current agreements
6.7
Union agreements
7.9
Non-union agreements
2.6
Public Sector
21.2
Private Sector
3.4
Industry group:
Mining/Construction
0.5
Food, Beverage and Tobacco Manufacturing
2.9
Metal Manufacturing
4.3
Other Manufacturing
0.8
Electricity, Gas and Water
22.6
Wholesale/Retail Trade
2.0
Transport/Storage
3.6
Communications
-
Financial Services
7.4
Public Administration
17.7
Community Services
19.0
Recreational and Personal Services
6.0

Source: ADAM Database, 2002, ACIRRT, University of Sydney, (n=2208) in Australian Centre for Industrial Relations Research and Training Agreements Database and Monitor Report 32 University of Sydney March 2002, 8.

Table A.7: Incidence of paid maternity leave provisions in certified agreements, 1992-2001
Year
% of certified agreements
1992
2.0
1993
0.7
1994
1.0
1995
0.3
1996
3.2
1997
5.2
1998
6.6
1999
6.1
2000
6.4
2001
6.5

Source: ADAM Database, 2002, ACIRRT, University of Sydney, (n=9524) in Australian Centre for Industrial Relations Research and Training Agreements Database and Monitor Report 32 University of Sydney March 2002, 8.

A.3.3.6 Australian Workplace Agreements Research Information System (AWARIS) [317]

The AWARIS contained a sample of AWAs, and was managed by the Office of the Employment Advocate up to 31 December 1999. Information on AWAs is now collected as part of ADAM which is maintained by ACIRRT.

The data on AWAs reported here were prepared by the former Department for Employment, Workplace Relations and Small Business (DEWRSB), based on AWARIS data and was reported in Work and Family State of Play. [318]

The sample used by the former DEWRSB

… comprises AWAs from the 1 056 employers with approved AWAs as at 31 December 1998. The sample comprises the earliest approved AWA for each employer. [DEWRSB] have weighted the sample by the number of employees with AWAs for each of these employers to provide indicative population estimates for family-friendly provisions applying to around 42 106 employees. [319]

The potential for significant variation between AWAs within an organisation mean that this method of analysis may not provide a true reflection of existing AWAs. As such these figures should be used with care.

In considering AWAs as a measure of access to paid maternity leave, it is important to recognise that AWAs are not evenly spread across industries.

Government administration and defence and communication service industries have a higher representation of AWAs, while manufacturing, wholesale trade, retail trade, education, and health and community services have a relatively lower representation of agreements.

Similarly, managers and administrators, and intermediate clerical, sales and service workers have a higher representation of AWAs, while tradespersons and related workers, intermediate production and transport workers, elementary clerical, sales and service workers and labourers and related workers were under-represented.

AWAs are more common in smaller organisations, with 42 per cent of AWAs in the sample made in organisations with less than 20 employees compared to four per cent in organisations with 500 or more employees. [320]

Fifty-eight per cent of AWAs were made with men and 42 per cent were made with women. [321]

Former DEWRSB analysis of AWARIS shows

Table A.8: Period of paid maternity and paid paternity leave by Australian Workplace Agreement, up to 31/12/98
Period of paid leave Number of AWAs
Paid maternity leave Paid maternity leave
Days: 3
0
27
Weeks: 1
216
11493
Weeks: 2
65
1
Weeks:4
114
0
Weeks: 5
1
1
Weeks: 6
116
9
Weeks: 8
501
0
Weeks: 12
11390
1
Weeks: 13
26
0
Number AWAs with paid leave
12429
11532
As a % of all AWAs
30
27

Source: AWARIS data up to 31/12/98, unweighted n=1056, weighted by number of employees gives n=42 106 quoted in Department of Employment, Workplace Relations and Small Business Work and Family State of Play 1998 Commonwealth of Australia Canberra 1998, 91.

A.3.3.7 Survey of Employment Arrangements and Superannuation (SEAS) [326]

SEAS is an ABS household survey that collected information on the diversity of employment arrangements and superannuation coverage in Australia. The survey collected information from individuals (April to June 2000) and superannuation funds and administrators (May to October 2000). The survey was a special stand-alone survey. SEAS collected information on paid maternity and paternity leave, however these data are unpublished.

SEAS found

Table A.9: Entitlement to paid maternity or paternity leave - Employees (excluding owner-managers)

Entitled to paid maternity/paternity leave
Not entitled
Did not know
Total
('000)
(%)
('000)
('000)
('000)
Female
Self identified casuals
3.4
0.4%
891.5
59.9
954.8
Other employees
1232.4
53.6%
537.5
529.9
2299.8
Total
1235.8
38.0%
1429
589.8
3254.6
Male
Self identified casuals
3.7
0.6%
583.1
54.7
641.5
Other employees
1204.1
40.9%
758.1
985.2
2947.4
Total
1207.8
33.7%
1341.2
1039.9
3588.9
Total
Self identified casuals
7.1
0.4%
1474.7
114.6
1596.4
Other employees
2436.6
46.4%
1295.7
1515.1
5247.4
Total
2443.7
35.7%
2770.4
1629.7
6843.8

Source: ABS 6361.0 Survey of Employment Arrangements and Superannuation April - June 2000 unpublished data.

Table A.10: Female employees (excluding owner-managers) entitled to paid maternity leave
Public sector
('000)
Private sector
('000)
Not determined
('000)
Total
('000)
% of total female employees
Labour force status
Employed full time
402.4
537.9
9.1
949.4
50.9%
Employed part time
116.5
167.9
2.0
286.5
20.8%
Industry
Agriculture Forestry and Fishing
-
1.8
-
1.8
4.5%
Mining
-
3.2
-
3.2
47.1%
Manufacturing
-
86.2
-
86.2
36.7%
Electricity Gas and Water Supply
2.9
1.9
-
4.7
49.5%
Construction
0.5
12.3
-
12.8
32.0%
Wholesale Trade
0.3
37.1
-
37.4
33.8%
Retail Trade
1.2
108.6
-
109.7
20.2%
Accommodation Cafes and Restaurants
0.1
28.2
0.6
28.9
13.4%
Transport and Storage
5.5
14.8
-
20.3
30.8%
Communication Services
20.1
4.2
0.7
25.0
59.1%
Finance and Insurance
11.2
92.7
0.4
104.2
59.0%
Property and Business Services
8.6
104.1
0.6
113.2
30.5%
Government Administration and Defence
113.1
1.4
0.4
114.9
68.1%
Education
180.1
59.0
0.6
239.7
57.0%
Health and Community Services
147.7
120.0
6.8
274.4
44.9%
Cultural and Recreational Services
10.7
13.3
0.9
24.9
28.2%
Personal and Other Services
17.2
17.4
0.1
34.6
31.4%
Occupation
Managers and Administrators
27.1
24.1
-
51.3
64.6%
Professionals
247.4
136.4
5.9
389.7
54.2%
Associate Professionals
56.8
83.7
0.6
141.2
46.0%
Tradespersons and Related Workers
3.3
15.8
-
19.0
24.3%
Advanced Clerical and Service Workers
27.0
80.6
0.4
108.1
44.1%
Intermediate Clerical, Sales and Service Workers
121.0
231.1
2.9
355.0
37.4%
Intermediate Production and Transport Workers
0.8
26.0
-
26.7
25.6%
Elementary Clerical, Sales and Service Workers
20.3
69.7
0.9
91.0
17.9%
Labourers and Related Workers
15.0
38.4
0.3
53.8
20.5%
Time worked in job
Less than 1 year
47.3
157.0
2.4
206.7
23.7%
1 year to less than 5 years
133.3
271.3
4.2
408.8
34.2%
5 years to less than 10 years
110.4
136.3
3.0
249.7
48.4%
10 years and over
227.9
141.4
1.4
370.7
55.2%
Total
518.9
705.8
11.1
1235.9

Source: ABS 6361.0 Survey of Employment Arrangements and Superannuation April - June 2000 unpublished data.

A.3.3.8 Household, Income and Labour Dynamics in Australia (HILDA) Survey [333]

HILDA is a household-based panel survey that collects information on economic and subjective well-being, labour market dynamics and family dynamics. The survey is funded by the federal Department of Family and Community Services. The Melbourne Institute of Applied Economics and Social Research (University of Melbourne), the Australian Council for Educational Research and the Australian Institute of Family Studies are jointly responsible for design and management of the survey.

Wave 1 of the survey was conducted in the second half of 2001. Four questionnaires (three personal interviews and one self-completion questionnaire) were used to collect the information from 13 962 members of 7 680 households. The sample was drawn from 488 different neighbourhood regions across Australia.

Data from Wave 1 of the survey are expected to be available in October 2002.

Preliminary HILDA data show the following.

These data are based on a raw data set that is still subject to further editing and cleaning. The data are unweighted and subject to further change.

A.3.3.9 Awards

A review of the top 100 federal awards undertaken by the former DEWRSB found that six awards included provision for paid parental leave. [336]

A.3.3.10 Conclusions

Conclusions that can be drawn from the available data are limited. Each of the data sets outlined above measure a different group of employees in a different way, and as such are not directly comparable.

In very general terms, conclusions can be drawn from the data that

It is not possible from the available data to determine which industrial instrument is most commonly used to provide paid maternity leave. Of the top 100 federal awards, only six include provision for paid maternity leave. Similarly, only a very limited number of federal Certified Agreements (seven per cent) include a formal provision for paid parental leave, indicating that enterprise bargaining has not significantly increased women's access to paid maternity leave. The proportion of currently operating AWAs that include provision for paid maternity leave is negligible (0.7 per cent). Data are not available on the number of company policies that provide paid parental leave.

A significant limitation with the majority of available data is that most data only record whether workplaces or agreements provide some form of paid maternity leave. They do not provide information on the number of women who are actually eligible for paid maternity leave. Eligibility criteria, such as the need for 12 months service, mean that many women will not be eligible for paid maternity leave, even though they may work in organisations that provide for such leave. Employees who fall outside of these formal conditions, such as contract workers, will not have access to paid maternity leave. Similarly, casual employees' limited access to leave entitlements mean that they will generally not have access to paid maternity leave, even where they work in organisations that offer this type of leave. This is highlighted by SEAS data which found that only 0.4 per cent of casual employees had access to paid maternity leave. [337] This means that the figures outlined in this section of the paper are likely to overstate significantly the availability of paid maternity leave.

Further, the available data do not record the number of women who take maternity leave. Even though paid maternity leave may be available, this does not mean that women actually use this leave. The take up rate of paid maternity leave is a crucial factor in determining the effectiveness of workplace provision of paid maternity leave. A range of factors, such as workplace culture or concern to avoid disrupting career prospects, may mean that women are unwilling to take up paid maternity leave.

A.4 Government payments to parents

A.4.1 Introduction

The Federal Government provides a range of income support payments to families to assist with the costs of raising children, including newborns. The stated aim of these payments is to recognise the needs and choices of both single and dual income families. [338]

Government payments to parents through allowances and tax benefits are a means of supporting parents generally in child care, rather than directly assisting women to take leave from work at the time of child birth. However, government payments to parents are part of the framework of support for maternity in general and have been included for that reason.

A.4.2 Maternity Allowance

The purpose of Maternity Allowance is to help families with the extra costs associated with the birth of a new baby. It is paid for all babies (including stillborn babies and babies who die shortly after birth).

Claimants must be eligible for Family Tax Benefit Part A within 13 weeks of the child being born or, for adopted children, within 13 weeks of the child being entrusted into their care where the child was under 26 weeks at date of placement.

Maternity Allowance is paid as a non taxable lump sum of $798.72. Multiple births attract payment for each baby. [339]

In the financial year 2000-01, 210 120 families received Maternity Allowance in respect of 214 355 children. [340]

A.4.3 Maternity Immunisation Allowance

Maternity Immunisation Allowance is paid for children after the child reaches 18 months old and either has been fully immunised, or is exempt from the immunisation requirement. A valid exemption can be for medical reasons or a parent's/carer's conscientious objection to immunisation.

Claimants must have been paid Maternity Allowance for the child or be eligible for Family Tax Benefit Part A when the child meets the immunisation or exemption requirements. It is paid as a non taxable lump sum of $208. [341]

In the financial year 2000-01, 203 939 families received Maternity Immunisation Allowance in relation to 207 547 children. [342]

The Government spent $218 million on Maternity Allowance and Maternity Immunisation Allowance in 2000-01. [343]

A.4.4 Family Tax Benefit Part A (FTB(A))

The purpose of FTB(A) is to help families with the costs of raising children. It is paid to families with children up to 21 years and young people between 21 and 24 who are studying full time (and not receiving Youth Allowance or a similar payment).

FTB(A) is based on combined family income. There is no assets test for FTB(A). Payments are made either fortnightly through the social security system, or through the tax system as a lump sum payment at the end of the financial year, with the added option to reduce the amounts withheld from wages paid to either parent. FTB(A) recipients may also qualify for Rent Assistance.

The maximum rate of FTB(A) for each child aged under 13 years is $122.92 per fortnight or $3 204.70 per year and is paid to families with an income up to $29 857 a year. The payment is then reduced on the basis of earnings. FTB(A) will stop for a family with one child aged 0-17 years when their income reaches $80 665. [344]

As at 30 June 2001, 1 799 706 families (with 3 482 290 children) received FTB(A). Of these families, 35 per cent received the maximum rate of payment. [345]

A.4.5 Family Tax Benefit Part B (FTB(B))

The purpose of FTB(B) is to provide extra assistance to single income families, including sole parents, especially families with a child aged under five years. FTB(B) is paid to families with children up to 16 years and children between 16 and 18 years who are studying full time.

The primary earner in a partnered relationship and sole parents are not subject to an income test. However, the secondary earner in a two parent family is income tested. There is no assets test for FTB(B). Payments are made either fortnightly through the social security system, or through the tax system as a lump sum payment at the end of the financial year, with the added option to reduce the amounts withheld from wages paid to either parent.

The maximum rate of FTB(B) for a child under five years is $105.56 per fortnight or $2 752.10 per year and is paid where the second income earner earns up to $1 679 per year. The payment is then reduced on the basis of the secondary earner's income, cutting out at earnings of $10 853 per year if the youngest child is aged under five years. [346]

As at 30 June 2001, 1 181 040 families (with 2 276 133 children) received FTB(B). Of these families, 72 per cent received the maximum rate of payment. [347]

Government spending in 2000-01 on Family Tax Benefit Part A and Part B was $10.076 billion delivered via the social security system [348] and $11 million delivered via the tax system. [349]

A.4.6 Parenting Payment (PP)

The purpose of Parenting Payment is to assist people with children, particularly low income families, by providing an independent income. Parenting Payment is paid to one parent who is the primary carer of a dependent child (child must be aged under 16). The two main streams are Parenting Payment (single), and Parenting Payment (partnered).

Parenting Payment is taxable and is subject to an income and assets test. Parenting Payment is paid fortnightly in arrears through the social security system.

The basic rate of payment is up to $421.80 per fortnight for sole parents and up to $332.80 per fortnight for partnered parents (up to $399.00 per fortnight may be paid if partners are separated by illness, respite care or gaol). Parenting Payment recipients may also qualify for Pharmaceutical Allowance, Education Entry Payment and Employment Entry Payment. [350]

A sole parent with one child will receive the maximum rate of payment if their income is up to $136.60 per fortnight, with payment stopping once their income has reached $1 205.60 per fortnight. [351] In the case of partnered parents where the partner is not a pensioner, for maximum payment the eligible parent's income must be no more than $62 per fortnight and the partner's income must be no more than $561 per fortnight. A part payment may be available provided the eligible parent's income is less than $589.71 per fortnight, the partner's income is less than $1 036.43 per fortnight and the combined income of the couple is less than $1 150.71. Where the partner is a pensioner, maximum payment is made where the couple's combined income is up to $124 per fortnight and payment cuts out at a combined income of $1 179.42. [352]

As at 1 June 2001, 416 661 parents received Parenting Payment (single) and 205 379 parents received Parenting Payment (partnered). [353]

Government spending on Parenting Payment was $5.325 billion in 2000-01. [354]

A.4.7 Child Care Benefit

Child Care Benefit helps with the cost of child care for long day care, family day care, in-home care, occasional care, outside school hours care, vacation care and registered care.

Child Care Benefit for approved care can be paid directly to child care services to reduce the fees charged, or as a lump sum to parents in October following the previous financial year. This payment is subject to an income test but is not subject to an assets test. Child Care Benefit for registered care is paid by direct credit and is not subject to an income or assets test.

The maximum rate of payment for child care in a Commonwealth funded approved child care service provider is $129 a week for a non school child in 50 hours of care. The maximum rate is payable for family incomes under $29 857 or for families on income support. For a family with one child in approved