Economists warn Pauline Hanson's stance on paid parental leave and childcare could turn clock back by decades
Australian economists have warned that One Nation leader Pauline Hanson's proposals on paid parental leave and childcare could seriously harm women's workforce participation, productivity, and gender equality.
Economists have warned that One Nation leader Pauline Hanson's stance on paid parental leave and childcare could wind back the clock by decades for working mothers, damage productivity, and worsen gender inequality.
In a speech at the National Press Club on Wednesday, Hanson suggested that women should not be paid by their employers while on maternity leave, hinting at major changes to the childcare system and calling for income splitting for families to incentivize a parent staying home with children.
Currently, paid parental leave is not compulsory for employers, though many offer it. All employees are entitled to 12 months of unpaid leave. The government scheme from July 1 will offer 26 weeks at the national minimum wage.
Leonora Risse, an associate professor in economics at Queensland University of Technology, said any move away from paid leave could have serious financial implications for women, setting them back in terms of financial independence, decision-making, and societal status. She argued that competitive paid parental leave helps women remain in the workforce longer term and boosts productivity.
Hanson has also pushed for income splitting for families with dependent children, which could encourage the lower-paid parent to stay home. One Nation's website states the policy aims to encourage parents to look after their own children and reduce childcare costs.
Independent economist Silvia Griselda said such policies could lead to skills shortages and higher immigration needs, noting that women are generally more educated than men, so limiting their workforce participation hampers economic growth.
Hanson called for an overhaul of the childcare system, now costing about A$16 billion annually, saying it is "completely out of control" and wants money given directly to parents rather than providers. She questioned the need for childcare workers to have degrees.
Caroline Croser-Barlow, CEO of early learning advocacy group The Front Project, said childcare is essential for working parents and that direct payments to parents carry high fraud risk and could compromise quality and safety. Griselda concluded that the combined policies would damage households and the economy in both the short and long run.
