Flexible paid parental leave a win for small businesses

parents, parental leave
Couples at home with new baby

Australian Small Business and Family Enterprise Ombudsman, Kate Carnell believes that Australia’s small-business owners will appreciate the flexibility of the new-look paid parental leave scheme that was announced recently by the government.

“This new policy is more family-friendly and small business friendly,” Carnell said.

Ms Carnell pointed out that mum-and-dad business owners often don’t get to use their whole paid parental leave entitlement because they have to be back at work soon after the baby is born; sometimes as soon as a couple of weeks.

“To expect a self-employed parent to exit their small business for an 18-week block is unrealistic and unworkable,” Ms Carnell said.

The Ombudsman also noted that 34 per cent of all Australian business operators are women and that they would need to be able to organise their business in a way that works for them after having a baby. “

“While you have to take the first 12 weeks as a block in the first year, the flexible use of the remaining six weeks will go a long way to ensure their small business can maintain momentum,” Ms Carnell said. This arrangement would also allow part-time work arrangements or small blocks to be taken at a time that suits the new parent.

The ASBFEO earlier said that ideally, the government should also consider allowing small-business owners flexibility around the use of the first 12 weeks as well. Nevertheless, the government’s move was met with appreciation.

Ms Carnell said that believes that the new scheme will give parents the ability to make choices on how they manage what is considered the crucial first two years after a baby is born.