Budget 2020: How it will help thousands of new mums on parental leave and what it means for childcare fees

The 2020 federal budget has been released with the government setting a financial plan for post-Covid recovery.

The big winner in the budget is for new parents with thousands of new mothers able to qualify for paid parental leave after changes to eligibility requirements.

The temporary changes are expected to help 9000 new mums, as well as 3500 new dad and partners.

The federal government has changed the work test period for Paid Parental Leave (PPL). Usually mothers must have worked 10 of the 13 months prior to the birth or adoption of their child in order to qualify for paid parental leave.

But for parents with children born or adopted between March 22 this year and March 31 next year, the work period will be extended to 10 months out of the previous 20.

Women’s Minister Marise Payne says extending the work test period will “ensure that parents whose employment has been impacted by COVID-19 are supported and that women can remain connected to the workforce.”

What other areas have been affected by the 2020 budget?

Childcare

The Budget papers predict childcare centres will increase their fees this year, driving taxpayer subsidies higher.

Treasury forecasts that taxpayer funding of childcare is set to grow 13 per cent in real terms this year.

“The increase primarily reflects expected continued growth in the use of child care by families and also reflects expected increases in fees charged by childcare providers,’’ the Budget papers state.

Women in the workforce

According to Ms Payne prior to the COVID-19 pandemic, “women’s workforce participation had reached a record high, and the gender pay gap was at a record low.”

“As we navigate our way out of a health and economic crisis, it is critical that women play a central role in our recovery,” she said.

Ms Payne said the Morrison Government would invest $50 million in the Women@Work Program to help restore and exceed the pre-COVID-19 record levels of women’s workforce participation.

While a further $35.9 million will be invested in the Boosting Female Founders Initiative to support up to 282 additional start-ups and 4,300 women entrepreneurs.

The Australian Government will invest an additional $1.2 billion to help Australian businesses employ 100,000 new apprentices or trainees. Businesses who take on a new Australian Apprentice will be eligible for a 50 per cent wage subsidy, regardless of geographic location, industry or business size.

School funding

Schools will receive record federal funding of $21.5 billion this year, based on need however private schools have been given more funding than public schools.

Private schools, including grammar and religious schools, will have their funding boosted 25.6 per cent over the next three years, to hit $16.1 billion by 2023/24.

Public schools will see federal funding grow by 21.6 per cent, to $11 billion, over the same period.

Ovarian cancer drug subsidy

A major new drug subsidy will see women suffering from ovarian cancer gain access to a high cost $140,000 treatment, Lynparza, for just $41.

Ovarian cancer is hard to diagnose and as a result is one of the most deadly cancers with few treatment options.