Pauline Hanson's parental leave stance could turn clock back decades, economists warn

Economists are sounding the alarm over Pauline Hanson's recent proposals regarding paid parental leave and childcare, warning that her stance could significantly set back progress for working mothers in Australia. During an address at the National Press Club, Hanson appeared to question the principle of employers paying wages to women on maternity leave, stating, "If women take time off and they are not paid their wages because they’re not working, fair enough. Why should business pay? But they’re not at work. That’s the difference. That’s why the pay gap is there."

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If women take time off and they are not paid their wages because they’re not working, fair enough. Why should business pay? But they’re not at work. That’s the difference. That’s why the pay gap is there.

These comments have drawn sharp criticism from experts like Leonora Risse, an associate professor of economics at Queensland University of Technology. Risse stated that questioning current paid leave policies risks "winding back the clock to many decades back, where it wasn’t an even playing field, and the gender gap was much wider." She emphasized that paid parental leave is crucial not only for women's financial independence and decision-making power but also for maintaining their attachment to the workforce, which benefits overall productivity.

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Questioning these policies is actually winding back the clock to many decades back, where it wasn’t an even playing field, and the gender gap was much wider.

Hanson also indicated potential overhauls to the childcare system and advocated for income splitting, a policy where parents combine their incomes and split the total for tax purposes. One Nation's website suggests this would "encourage parents to look after their own children" and reduce government childcare costs. However, economists like Silvia Griselda fear such policies could disincentivize women's workforce participation, potentially exacerbating gender inequality and hindering economic growth. The party did not respond when asked if it would continue to support government-funded paid parental leave.

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If women can sustain their involvement and their attachment to the workforce and to their employer during their child-bearing years, that’s positive for productivity because it maintains a good job match.