Budget 2008-09 > Women's Budget Statement 2008-09 > Women's Economic Security and Independence
Women's Budget Statement 2008-09 - Women's Economic Security and Independence
The Government respects the choices of Australian women regarding their decision to work or stay at home to care for family members. Women in their prime working age take on multiple roles including paid, unpaid and voluntary work. Australia must value the unpaid work of caring, predominantly done by women, as well as supporting opportunities for their increased workforce participation. Many women want to work more hours than they currently do, but cite caring for children or dependent adults as the main reason they don't.
Paid work provides women with economic independence and increases their retirement savings. Increasing women's participation in the workforce is also an important way to further Australia's economic growth. The Government is concerned about the lower workforce participation rates of Australian women compared with their counterparts in other countries and is committed to achieving reform in the areas that impede women's chances to take up job opportunities. Workplace arrangements should deliver flexibility for employers and employees, fair wages and conditions, productive work practices and a balance between work and family responsibilities.
The tax cuts that will come into effect in July this year are an important first step to longer-term tax and welfare reforms which will provide more women with the opportunity to work. To address hurdles to workforce participation faced by women with young children, the Government is making quality child care more affordable and more accessible. The Government is increasing the Child Care Tax Rebate from 30 per cent to 50 per cent of out of pocket costs from July 2008 and establishing up to 260 additional child care and early learning centres.
Ensuring that parents have access to affordable, high quality child care that helps them to balance their work and family responsibilities is a high priority for the Government. Top quality affordable child care is a necessity for working parents and it must also provide a positive educational experience for children. The increase in the Child Care Tax Rebate reflects the Government's commitment to improving the opportunities for women to balance their work and family life.
The Government is developing National Employment Standards which will increase the safety net of minimum conditions, providing for additional unpaid parental leave and introducing a right for parents to request flexible working arrangements such as part-time work, flexible working hours and working from home arrangements until their child reaches school age. The Government has also asked the Productivity Commission to examine different models of support for parents in the labour force with newborn children including paid maternity, paternity and parental leave.
Work and family measures should provide different forms of flexibility to people whether they are caring for children, other family members or the frail and aged. The Government has created an Office of Work and Family within the Department of Prime Minister and Cabinet so that policy-making to support work and family takes place centrally and at the highest level.
The Office of Work and Family is driving a comprehensive response to child care for working families and is addressing the needs of Australian parents who choose to care for children at home in their early years. It is also looking at ways to support women who may be caring for an ageing relative or child with a disability.
Budget and other measures
This Budget delivers a significant increase in the take home pay of working mothers through tax cuts and child care relief. A mother employed two days a week with two children in child care will receive relief of up to $71 a week. A mother working five days a week with two children in child care will receive relief of up to $136 per week.
Personal income tax cuts
In recognition of the financial pressures on many Australian families, the Budget delivers tax relief worth $46.7 billion over the next four years.
Early childhood
This Budget commits $2.4 billion over the five years from 2007-08 to early childhood education and care initiatives to ensure our youngest Australians have the best possible start in life. One of these initiatives includes increasing the rate of Child Care Tax Rebate from 30 to 50 per cent of working families' out-of-pocket expenses for approved child care costs from 1 July 2008. This gives all eligible parents access to a benefit that is better than tax deductibility. It will deliver $1.6 billion over four years to Australian families, with benefits ranging between $500 and $2,500 per year for the average family. The Government will lift the cap from $4,354 to $7,500 (indexed) per child per year.
$4.4 billion to help families meet schooling costs
Australian working families are set to benefit from the Government's decision to create a new Education Tax Refund, to help with the cost of education. About 1.3 million families (with 2.7 million students) will be eligible for the refund tax offset which is expected to benefit Australian families by more than $1 billion a year.
Schools
The Government is meeting its commitment on schools and providing support for technology, infrastructure, curriculum and resourcing through a $3 billion downpayment on building a world class school education system.
Higher education
This Budget provides a further $1.8 billion to strengthen Australian universities and other higher education institutions including $500 million to help universities rebuild their campus infrastructure.
Indigenous
The Government is delivering $1.2 billion over five years, including 37 2008-09 Budget measures, towards closing the gap between Indigenous and non-Indigenous Australians. The Government has a comprehensive plan to tackle Indigenous disadvantage, make communities safe for children and families and promote economic participation.
Employment
This Budget commits $3.7 billion over three years to implement a new integrated Employment Services system to provide greater flexibility for providers to streamline services for individual job seekers.
Jobs, Education and Training Child Care Fee Assistance (JETCCFA)
The Government is delivering $23.9 million over the next four years to extend JETCCFA from one to two years for approved study. This initiative will help parents with child care needs to improve their skills through education and training and will give them enhanced opportunities for their sustained employment and workforce participation.
Fresh Ideas for Work and Family
The Fresh Ideas for Work and Family Program delivers on the Government's election commitment to increase workforce productivity and participation. The program will invest $12 million over three years to encourage small businesses to implement practices that help employees balance their work and family obligations as well as improve employee retention and productivity.
Housing affordability and homelessness
The Government is tackling housing affordability and homelessness with a Budget housing package investing $2.2 billion over the next four years on boosting rental stocks, helping people save for their first home, making new homes more affordable and building new homes for the homeless.
Counselling support doubled to ease financial stress
The Government is supporting working families under financial pressure by expanding financial counselling services and support as part of a $20 million Government commitment over four years.
Support and recognition of carers
Australia's carers are set to benefit from an $822 million package of measures to increase support and recognition of their vital economic and social role. Budget measures include fairer and simpler access to financial support of up to $546.80 per fortnight for 19,000 additional eligible carers looking after children with a severe disability, bonus payments for recipients of Carer Payment, Carer Allowance and eligible service pensions and $100 million for additional supported accommodation for people with disability to help ageing parents who can no longer care for their disabled children at home.
Older Australians
Older Australians will benefit from a range of Budget initiatives including bonus payments, national transport concessions, free internet kiosks and portability of concession cards when travelling overseas. The Government will guarantee that the Age Pension will increase in line with the higher of the consumer price index, increases in male total average weekly earnings or the living cost index for age pensioner households. This comes on top of our $5.6 billion commitment over five years to increase the Utilities Allowance and Seniors Concession Allowance to $500, paying the $500 Seniors Bonus again and increase the Telephone Allowance to $132 for those with home internet access. The first quarterly instalments were paid in March, with the next instalment due in July.
Veterans and their families
Australia's veterans will benefit from an increase in total Veterans' Affairs funding as the Government delivers on its election promise to restore the value of veterans' compensation. This includes funding of $6.34 billion for compensation and income support pensions and $4.87 billion in funding for health. The Government will also extend the number of repeat prescriptions available to the almost 290,000 veterans, war widows and widowers who have a chronic health condition.
Helping volunteers pay their petrol bills
In a move that significantly expands the Volunteers Grants Program the Australian Government has committed an additional $15 million over three years to help community organisations and their volunteers with their work, including help to pay their fuel bills.
