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ABC News
National
By Claudia Forsberg 

Parental leave changes condemned by economist

Mick Davies is taking advantage of more flexible parental leave entitlements. (Supplied: Mick Davies)

Council worker Mick Davies says having time off to be with his kids has been fantastic for him and his family, but he never thought it would happen.

He said not having to worry about the financial implications of not being at work was great because he was "getting paid to do the day-to-day chores with the kids".

"[It] also allows my partner and myself to bond with our newborn longer than the two weeks that I would initially have taken off in my own time," he said.

Mr Davies is one of an increasing number of dads taking advantage of more flexible parental leave entitlements being trialled in some workplaces, including where he works at Bass Coast Shire Council.

The entitlements will be more widely available under the federal government's changes to paid parental leave, which were flagged in the budget.

The government will increase paid parental leave from 18 to 20 weeks, to be shared among parents as they see fit from March next year.

But some economists are worried the changes will result in fewer dads taking up the leave as the "use-it-or-lose-it" provision is scrapped.

Impacts for working women

Economists say combining the total number of paid parental leave weeks could mean mothers continue to take the lion's share because the incentive for fathers to take leave has almost been eliminated.

"The real issue here is the loss of the use-it-or-lose-it provision for dads," Impact Economics economist Angela Jackson said.

Are changes to parental leave a step forward or backwards?

She is part of a group of economists and policy experts who work with governments and businesses to provide analysis and communication that help tackle Australia's biggest public policy issues.

In Australia, dads are currently guaranteed two weeks paid parental leave at the minimum wage.

"For most dads, that medium earnings is only around four days of leave and at some of the lowest paid fathers leave in the world and the OECD," Ms Jackson said.

There are concerns factors including stigma, the cost of childcare and the gender pay gap will make dads less likely to take parental leave now the "use it or lose it" provision for dads has been scrapped.

Ms Jackson said dads should consider taking the leave anyway as it was "beneficial, both from an economic perspective and also for kids".

"What we're losing is our most productive, educated workers through this arrangement," Ms Jackson said.

Take a look at the trends

Trends in Australia are showing that women are increasingly becoming more educated than men in terms of university qualifications.

Australian Bureau of Statistics data shows women aged between 25-29 achieved non-school qualifications at up to 77 per cent compared to 69.5 per cent for men of the same age range last year.

The figure jumped to 80 per cent for women aged between 30-34 compared to 74.8 per cent for men of the same age range.

"We're amongst the most educated women in the world," Ms Jackson said.

"But when it comes to economic participation, we actually dropped to 70th in the world and we're going backwards relative to the rest of the world."

Impacts for families and kids

A report from the Grattan Institute shows that children in families where mums and dads are caring more equally have benefited immensely in terms of the bonds formed with parents and "the exposure to more varied stimuli [which can] enrich a child's development".

"Children also benefit from additional time spent with fathers or partners in their early lives," the report states.

The aim of the government's new budget proposal for parental leave is to encourage fathers or partners to take more leave as well as "increase choice" and "flexibility" for both parents according to the Women's Budget Statement 2022-23.

Mr Davies said he did experience "a little bit" of the way men had been "left out of the conversation" on parental leave but said his experiences with his current workplace since taking leave had been positive.

"With my partner, you got to have respect for what they're going through," he said.

"So, this is not a holiday, this is a time to bond and heal for my wife and you know, for all our kids to bond together."

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