IN A MOVE that will not see it deliver on its earlier promise of 14 weeks paid maternity leave until 2010, the Australian Labor Party has announced details of its Baby Care Payment.
IN A MOVE that will not see it deliver on its earlier promise of 14 weeks paid maternity leave until 2010, the Australian Labor Party has announced details of its Baby Care Payment.
Revealed in a joint statement by Federal Labor Leader Mark Latham, Deputy Labor Leader and Shadow Minister For Employment, Education and Training, Jenny Macklin, and Shadow Minister For Family and Community Services, Wayne Swan, the payment will be worth $3,000 in 2005 and rising to $5,380 by 2010.
When fully phased in by 2010 the Baby Care Payment will be the equivalent of 14 weeks pay at the Federal minimum wage after tax.
After the birth of their baby, eligible mothers will receive the payment over a minimum period of 14 weeks, or up to 12 months. The Baby Care Payment will be tax free and means tested.
All women whose family income is below the Family Tax Benefit Part A cut-out will be eligible for the full payment. For each additional dollar above the cut-out, the Baby Care Payment will be reduced by 30 cents. The ALP said that around nine out of ten mothers are expected to receive a payment.
From 1 July 2005, Labor will phase out and cap the Baby Bonus. The Baby Care Payment will replace the Maternity Allowance, but the Immunisation Allowance will remain.
Over the next four years the Baby Care Payment will cost taxpayers $2.2 billion.
“Unlike the Howard Government’s flawed Baby Bonus, Labor’s baby care payment gives new mothers help when they need it most - at the time of the birth of their child,” ACTU president Sharan Burrow said.
