For the last decade or so, Australia’s federal budgets have often handed out a laundry list of business-facing measures meant to shore up the operations of small and medium-sized enterprises. This year, however, the business community didn’t get nearly as much direct support as in prior years. Instead, it was Australian workers who received a shiny hand out – especially Australia’s working women. Last week, Federal Treasurer Jim Chalmers handed down what has been called a ‘women’s bu
s budget’ which delivered relief on a number of key issues that have long kept women out of the workforce, by boosting paid paternity leave, and making it easier and more affordable to access childcare.
The government will spend $4.7 billion over the next four years easing the cost of childcare by refunding 90 per cent of the costs for a first child, up to an earnings cap of $80,000, while $531.6 million are marked for a more equitable form of parental leave, where either parent can take up to 20 weeks of leave in blocks are small as a day at a time.
These changes will be implemented in July 2023, and over the next four years an additional two weeks a year will be added to the total parental leave time paid, meaning parents will have a full 26 weeks as of July 2026.
“The Women’s Budget Statement’s interlinking of themes of women’s economic equality, ending violence against women and women’s health and housing herald the start of gender responsive budgeting and policymaking,” said Chief Executive Women president Sam Mostyn AO.
“This budget is a strong response to the advocacy of many women’s organisations, including CEW, [and] tells us that women are respected and valued, and that their participation is now regarded as central to Australia’s economic prosperity.”
Woolworths, Australia’s largest private employer, backed the changes, and said they would play an important role in driving workforce participation moving forward.
Business Council of Australia CEO Jenna Westacott also welcomed the changes, saying they will allow Australians to advance their careers without being forced to give up progress to start a family.
“According to KPMG research in 2018, if Australia halved the workforce participation gap, in 20 years’ time the economy would be bigger by around $60 billion each year in today’s dollars,” Westacott said.
“Many large employers are already leading the way to give families flexibility but we support moves that make sure Australian families benefit from a strong minimum standard.”
There’s still more to do
While these changes will make a large difference to women’s financial experience in the workforce, it does little for a work culture that is predominantly led by and for men, and presents barriers for women to overcome at every step.
Former retail manager and trainer for women from the refugee and new migrant community at sustainable fashion brand The Social Outfit Natalie Shehata told Inside Retail that there are many barriers to women’s inclusion in the workforce that go beyond what was covered in the budget, especially for those with refugee and migrant backgrounds.
“There are biases and prejudices in hiring and recruitment; from not hiring women of colour because of their names, because they were not born in this country, or because of the colour of their skin, or because of their hair, to recruiters not hiring women because they are the primary carers for children. I have seen and heard it all, and have firsthand experience myself,” Shehata said.
“I think we need to have an intersectional approach and create more culturally inclusive spaces for all women in the retail industry and beyond.”
Shehata added that, contrary to the goals of the budget, the expanded childcare subsidy won’t be offered to women seeking asylum in Australia – a group that is generally one of the most underemployed in the Australian labor market.
“This support should be available for all working mothers in Australia,” said Shehata, who is also founder of Tommie magazine.
“If women from [these] communities have to pay for childcare with retail wages that don’t even cover childcare costs, then they are immediately in a cycle of unemployment, not out of choice but because of flaws in our systems that don’t acknowledge these barriers.”
A next step, Shehata said, is to look at the issues facing women intersectionally, with the goal of making the support offered more culturally and linguistically diverse to ensure that all women can benefit.
“My hope is that [moving forward] there is more focus on equity-based solutions, empowerment and leadership opportunities for BIWOC, because it is these women who are often the most under-represented and experience the most injustices, but work the hardest and are advocates for all people.”