AMANDA RISHWORTH:
Well, I’m so pleased to be here with Katy Gallagher, the Minister for Women and Minister for Finance, and, of course, our Treasurer Jim Chalmers and also Ashling, Josie and Leo, because today is a really good day for Australian families.
Today, the government has introduced our next tranche of legislation to improve Paid Parental Leave in this country. We have not only improved flexibility, encouraged shared care of Paid Parental Leave and increased the means testing to have a more generous family income test. But in addition to that, we have extended Paid Parental Leave to 26 weeks, finishing in 2026. And today we have introduced a bill that will pay superannuation on Paid Parental Leave.
This is a really significant reform to ensure that those receiving the government Paid Parental Leave not only get the support at the time of their newborn baby, but also don’t miss out on their retirement savings in the form of superannuation. Now this work was really spearheaded by Minister Gallagher through the Women’s Economic Equality Taskforce and was a key recommendation for this. Of course, it is also critical that we are protecting and boosting retirement incomes and the Treasurer has led so much work, not only on ensuring that there’s superannuation on Paid Parental Leave, but securing our superannuation system to ensure that it delivers for people in retirement.
So this really is a whole of government effort, a really important government effort. And of course, it is families like Ashling and her family that will see benefit into the future as a result of these changes. So I’ll hand it over to Minister Gallagher now to add some extra words.
KATY GALLAGHER:
Thanks Amanda and thanks everyone for coming. It’s lovely to be here with Amanda and Jim, Ashling and Josie and Leo. You know, one of the many great things about being in government is when you have moments like this, which is, seeing an idea that’s been campaigned for a long time translate into legislation. And once passed, will make a real difference for over 180,000 families across Australia who will access the Paid Parental Leave scheme and also having super paid on it. And a couple of things, because we are encouraging the second parent and the male partner&ndash–the father, to take leave.
So some of the changes that Amanda has talked about, it’s really important for women that we continue to encourage shared care arrangements that the women isn’t the only parent taking leave, and that’s changing in Australia, and it’s a really welcome change. But the other thing is, we also know that women pay a financial penalty when they take time out to care for children.
We know that that’s often referred to as the ‘Motherhood Penalty', and we believe that women shouldn’t pay an additional financial penalty just because they’re taking time out to do important work like this, with the soundtrack [of children] behind me. So paying super on that recognises that the value and importance of the time taken out of the paid workforce to care for children.
So I’m really thrilled that we’ve been in a position as a Labor government to take up this reform to make sure it gets done in our first term and over time, it’s going to make a substantial impact on women’s retirement incomes, which we know is part of our agenda about addressing gender inequality and making sure that we’re doing everything we can to drive the economic empowerment of women. I’ll hand to Jim.
JIM CHALMERS:
Well, Leo and Josie are really excited about super on Paid Parental Leave, and so are we. This is a really big day for Australian parents and especially for the mums of middle Australia. We’ve been working on this policy for some time and we’re really proud to be legislating it. Today, I want to pay tribute to Amanda and to Katy and also to Stephen Jones for all the work that’s gone into this.
This is a really important part of our efforts to make sure that Australian women earn more, keep more of what they earn, and retire with more as well. This is all about a more secure retirement for more Australian women in particular, and that’s why today is such an important day.
Now we’ve spent this week delivering for middle Australia. We’ve been focused on the main game, not political games. We’ve been focused on things like legislating superannuation on Paid Parental Leave, while our political opponents are focused on dividing and diminishing our community. This is about the cost of living. It’s about retirement. It’s about fairness. It’s about making sure that more Australian women can retire with more super and have a more dignified and secure retirement. As a consequence, if there’s one thing that this government is about above all else, it’s about Australians earning more and keeping more of what they earn, and by paying super on Paid Parental Leave, people will be retiring with more as well.
As Amanda said a moment ago, this isn’t a change which is being made in isolation. Extending and expanding paid parental leave, closing the gender pay gap, and we saw good progress on that last week, with more work to do. This is part of a full effort right across the Albanese Labor government, with these 2 ministers playing the key leading role to make sure that we are investing in economic security for Australians, broadly, but especially for Australian women. Over to Aisling.
ASHLING:
I just wanted to say how great it is all these changes that are being made. I come from an early childhood background myself, and just showing the importance of that extra time with the children and the extra super that’s going to be there, just not having to worry about money and just get out to spend time with your children. Those first few years are really the most important years. Yeah, it’s just really great changes that are being made.
JOURNALIST:
Aisling, while you’re here. How much is this going to save your family?
ASHLING:
Well we’re not planning on having any more, but I know for friends that we have here it is going to make a huge difference.
JOURNALIST:
How many families will be eligible to access this scheme?
RISHWORTH:
It is approximately 180,000 families each year that access the government Paid Parental Leave scheme. And in terms of the contribution when our scheme gets to the full 26 weeks, it will be approximately $3,000 extra in a family’s super account.
JOURNALIST:
Minister, there’s some figures around, like women retiring with 25 per cent less super, or a third less super than men. So how much of that gender gap do you think might be closed with the Paid Parental Leave super. And also, do you think that the scheme that the government is introducing might provide extra incentive for other companies who don’t pay super on top of their Paid Parental Leave entitlements?
RISHWORTH:
I’ll start with your second question first. Obviously, ensuring that employers continuing their efforts when it comes to Paid Parental Leave is really important. We’ve seen over the last decade or so, an increase in employers paying Paid Parental Leave increased from 48 per cent to over 60 per cent so this is a good trend, and we think by paying superannuation on the government scheme, it sends a real message about how important it is for also employers to make that contribution as well. We really have complementing schemes in this country, but by the government paying superannuation on Paid Parental Leave. That is a critical element in terms of, and Katy might want to add to this, in terms of the contribution to that gap in superannuation earnings.
This is one component that seeks to close that gap. It is not the silver bullet. But of course, it is about things like pay equity in this country. It is about closing that pay gap. It is about supporting shared care, as Katy mentioned, ensuring that women are equally able to share care with their partner. So there are lots of elements around gender equality and economic women’s security that contributes and can improve and close that retirement savings gap.
JOURNALIST:
Can I just ask how crucial Labor’s aged care reforms are to saving the scheme in terms of savings to the Budget?
CHALMERS:
I’m happy to do that, but I just spotted some friends from the union movement, which I should have shouted out at the start – Jenny and Neil and colleagues from the ASU. I think one of the things that we want to acknowledge today is the really important work that the labour movement has played in making sure that we get this outcome today. And so I wanted to acknowledge you guys as well.
Obviously, we’ve made it really clear in the time that we’ve been in office that we want to deliver better care and better services in a more sustainable way. If you think about the big pressures on the Budget, aged care, NDIS, health care, defence and interest on the debt that we inherited from the Liberal Party. We’ve made it really clear that we’ve been working methodically to make sure that we can deliver a higher standard of care and better services in a more sustainable way, and so it’s an important part of our agenda. We’ve been engaged, I think, in meaningful discussions and negotiations across the Parliament, and we hope to be able to say more about that. We’ll have more to say about that.
Subsequently, there have been, there has been literally years of work and months of discussions with other parties in the parliament. I think you’ve all read in the press during the course of the week that those discussions have been underway. Our goal here is to deliver better care for more people as they age in a more sustainable way. Spending on aged care will continue to grow, even if we are able to implement the sorts of reforms recommended to us by the Aged Care Taskforce. Anika Wells, with the support of Mark Butler, Katy Gallagher, the Prime Minister and others, has been working around the clock, having received those recommendations from the Taskforce, and have been doing a characteristically terrific job to make sure that we can deliver more and better care for more people. To do that in a more sustainable way, we have to recognise the pressures on the aged care system. Business as usual won’t cut it in aged care in the coming decades.
We know from the intergenerational report and from other analysis that investment in aged care, which is important, which we support, will continue to grow as a share of our economy over time. We can’t ignore that, and that’s one of the motivations for the reforms we’ve been discussing with others. But not the only motivation. Obviously, our primary motivation is to deliver more and better care in the context of an aging population.
JOURNALIST:
Just on the NDIS, I just wanted to ask regarding the $14 billion of savings over the next 4 years that are projected from your reports. Do you think this will be partially undermined by the cost you need to put into foundational supports? And if I could ask on that, do we have an indication of what that will cost or when the modelling will be out? Because, of course, Treasurers are working on that – they have been since December. So where is that moment up to?
CHALMERS:
I will obviously have more to say about the discussions with the states and territories on the NDIS, but first, we should acknowledge the really quite considerable progress that Minister Shorten has made in the course of this week, whether it’s the arrangements with the states, whether it’s the progress that we hope to make in the parliament before the end of today, what we’ve made very clear is that we have the capacity to continue to invest in the NDIS. Growth in the NDIS continues to be strong in terms of spending.
Our primary motivation is providing a decent level of care for people who rely on the NDIS, but we’re making really good progress, and this is what, where it links with the question that others asked me about aged care. You know, there is a lot of pressure on the care economy, a lot of pressure on the Budget. Our motivation, whether it’s in the NDIS or in aged care, is to provide a higher standard of care in a more sustainable way, and that’s why it’s really important the progress that we’ve been making this week.
JOURNALIST:
But will the $14 billion be undermined by the need to invest in foundational supports?
CHALMERS:
I don’t see it that way. I don’t see foundational supports as undermining our efforts on the NDIS, more broadly, I see it as a complimentary effort.
JOURNALIST:
On the Reserve Bank reforms, just given talks with the Coalition seem to be at a dead end. Are you open to talking with the Greens to try and get it through the Senate?
CHALMERS:
I don’t think they are. I wouldn’t describe the negotiations with the Coalition the way that you have.
JOURNALIST:
What concessions are you willing to make on putting people on the new board then to get it through?
CHALMERS:
What I’d say this about the Reserve Bank reforms is I’ve been engaging with the Shadow Treasurer for a long period of time, as you know, as you’ve written about it. Some of those discussions have been relatively recently.
There have been, from memory, about half a dozen issues that the Shadow Treasurer has raised, I think, in good faith, and we’ve done our best to accommodate the views that he has put forward. Those discussions are ongoing. My preference remains to come to an agreement with the Coalition, rather than with the smaller parties in the Senate, and that’s what I’m working on.
JOURNALIST:
I have question for Minister Rishworth about gambling. Stakeholders got chapter and verse what the government’s proposal is on restricting ads, but they’re still in the dark about the other recommendations of the murphy report. Is it Labor’s intention to ban inducements as well?
RISHWORTH:
When it comes to the Peta Murphy report, we are diligently working through all the recommendations. In terms of a number of the recommendations, indeed, about 21 recommendations. They have interactions with states and territories. They are connected with states and territories, and so we will continue to work through that report, as well as with our state and territory colleagues.
One point I would make is we have been working very significantly across the board when it comes to initiatives to tackle online gambling harms, and I’ll just go through a couple of those, including banning credit cards because you shouldn’t have you shouldn’t be betting with money that you don’t have. That’s a critical reform. The pre‑verification, actually being able to identify who you are before you can participate in gambling, it’s really important to ensure that something like BetStop, which was also a new initiative, actually works.
So we are working very diligently, and there have been a number of measures that we’ve implemented in conjunction with states and territories, and I’ll continue to do that and work with Minister Rowland to respond to the final report.
JOURNALIST:
Back on aged care, Australians who are about to retire very early in their retirement, they’re quite very anxious at the prospect of having to pay more for their aged care than what they factored in. What assurances can you give that Labor’s plan to reduce costs in the sector won’t overburden or pass on those costs to people who hadn’t factored it in?
CHALMERS:
Yeah, we’ll obviously have more to say about aged care reform. I think I’ve indicated to you that we’ve been having meaningful discussions with the Coalition, because we would prefer these changes to be meaningful discussions with the Coalition, because we would prefer these changes to be bipartisan, given the really long lead times and really long timeframes that we’re talking about and some of those intergenerational pressures that we’re trying to deal with in the Budget.
Obviously, we’ve been really focused on, really cognisant of the anxieties that people might have about changes in aged care. In my view, it’s not tenable, it’s not viable to continue the current system the way that it is forever. And so we’re being upfront with people about that something needs to change in aged care in order to have that higher standard of care for more people in a more sustainable way. So when we have more to say about aged care reform, obviously, a big part of that will be being upfront with people about what we’re asking of them and what the transitional arrangements would be to assuage some of those concerns that you raised.
JOURNALIST:
Do you know when people might be able to see the bill? Is that a possibility for the next sitting fortnight?
CHALMERS:
We’ll have more to say about that at subsequent points.
JOURNALIST:
Minister Rishworth what is stopping the government from treating family and domestic violence like terrorism, in regards to using all the tools available? And do you expect a substantial ramp up recommended through the rapid review?
RISHWORTH:
Firstly, I would say that our government, from its first day, has taken family and domestic violence incredibly seriously. It has been a really significant priority. If you look at the first piece of legislation we put through the parliament, it was 10 days of family and domestic violence leave. So we have now over 3 successive budgets– and I would like to really acknowledge the support I have had from the Treasurer and the Finance Minister– we have $3.4 billion worth of investments over 85 initiatives, and we have continued to work with states and territories on this issue. I know that Minister Gallagher might want to add to this.
When it comes to high–risk offenders, actually sharing information across jurisdictions was something that was reported at National Cabinet, and something that I know data and digital ministers are looking at, but I agree with the Domestic Family and Sexual Violence Commissioner. This is a serious issue. It needs to be a priority of government. It needs to look at all those areas, prevention, early intervention, response and healing and recovery if we’re going to break the cycle. It needs to look at emerging issues, like some of the extreme misogynistic content that is fed to young people online.
These are serious new and emerging issues to tackle and I have no doubt that the independent rapid review, which was commissioned out of National Cabinet, will look at what extra things we can do to bolster the action we are already taking under the National Plan.
JOURNALIST:
The CFMEU indicated that they’re considering High Court action with the administration bill. Would there be a backup plan if the High Court were to overturn your bill?
CHALMERS:
Look, I’m not interested in engaging in legal hypotheticals. We’ve made our position on the CFMEU clear. Obviously, there are a bunch of processes underway, and I don’t want to pre‑empt the outcome of those.
JOURNALIST:
There’s a debate at the moment about government spending. You’ve pointed to the delivery of 2 budget surpluses, but the budget is forecast to go back into deficit and to stay there going into the next election. What will your message be to Australians about whether Labor has given up the fight for a structural budget surplus?
CHALMERS:
Well, because of the government’s efforts, and here I salute my mate Katy Gallagher, we’ve improved the bottom line of the budget by, I think, $215 billion. A big part of that has been turning 2 big Liberal deficits into 2 big Labor surpluses. But we’ve also made sure that the surpluses going forward are smaller than what we inherited.
The deficit for the coming year is much smaller than what we inherited from our political opponents. And so we’ve been working very hard, in 2 ways, in the near term to turn those Liberal deficits into Labor surpluses, but also to make sure that we’re dealing with some of the structural issues in the
Budget that your colleagues asked us about at the start of the press conference.
What we’ve done is we’ve been able to clean up a lot of the waste and rorts in the near term. We found almost $80 billion in savings. We’ve banked almost all of the upward revision to revenue. We’ve made sure that where there is additional spending, it is either unavoidable or desirable spending, including giving people cost‑of‑living relief that our political opponents don’t support. And so I think a defining feature of our government has been responsible economic management, and that will be a factor at the election.
JOURNALIST:
Are you concerned about Deloitte employment forecasts today?
CHALMERS:
I haven’t got my head around the Deloitte forecasts, I have been in the Cabinet Room with the PM and Katy and others. I’ll get my head around that.
What we’ve really seen in the labour market is around the middle of last year, unemployment was about 3.5 now it’s 4.2 and because of the really quite extraordinary participation gains that we’ve made, we’ve managed to create almost a million jobs, new jobs in the economy since we’ve been in office. And that’s a record for a parliamentary term, almost a million jobs created, even as that unemployment rate has been ticking up, even as job ads have been trailing away the last 11 of the last 12 months.
So what we’re seeing overall is a quite remarkable record of job creation under Prime Minister Albanese. But we know that there is softness around the edges of the labour market. We’ve seen that in lots of data, the job ads, and we’ve seen it in the unemployment rate as well. And I would expect when I get my head around the Deloitte figures that they reflect some aspects.
JOURNALIST:
Just finally Larissa Waters and the Greens said earlier this year they weren’t going to support your changes to the super, those big super balances over $3 million, unless you added super to PPL. It was a huge part what they were talking about. So I’m just wondering regarding that second policy regarding super and the concession tax rate. Have the Greens assured their support? Where’s that up to? Can we expect to see that piece of legislation?
CHALMERS:
I wanted to repeat your very compelling point, which is that the Greens said that they would support our superannuation tax changes were we to pay the superannuation guarantee on Paid Parental Leave, and we are keeping our end of that particular bargain with this really exciting development that we are talking about today.
We’re in discussions with the Greens and with the crossbenchers in the Senate to pass as much of our agenda as we can. We’re very keen to pass that measure and there a number of other pieces of legislation that we’re in discussions with them about as well. Thank you.