Economists have warned that proposed policy changes by One Nation leader Pauline Hanson regarding paid parental leave and childcare could significantly harm working mothers, damage economic productivity, and worsen gender inequality.
During an address to the National Press Club, Hanson suggested that employers should not be obligated to pay wages to women on maternity leave, questioning the rationale behind it since they are not actively working. She also indicated potential overhauls to the childcare system and advocated for income splitting for families, a policy that would allow parents to combine and split their incomes for tax purposes, thereby incentivizing one parent to stay home with children.
Risse, an economics professor, stated that questioning paid parental leave policies would revert Australia to a state of wider gender gaps and financial inequality for women. She emphasized that competitive paid parental leave is crucial for women's long-term workforce participation and overall productivity, maintaining a good job match between employees and employers.
Economist Silvia Griselda noted that policies encouraging women to stay home could lead to skills shortages and necessitate increased immigration. She pointed out that if a significant portion of the educated female workforce opts out of employment, it would limit economic growth and productivity. Griselda also warned that the combined effect of Hanson's proposed policies would be detrimental to both households and the broader economy.
Hanson also criticized the current childcare system, deeming it "completely out of control" and suggesting that government funding should be directed to parents rather than childcare providers. Caroline Croser-Barlow of The Front Project countered that childcare is essential for working parents and that investing in high-quality early learning environments is critical for children's development. She also raised concerns about potential fraud risks and compromised quality if payments were made directly to parents.