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Date Published : Tuesday, July 01, 2008
Parents exploring ways of remaining a home while their children are babies should be able to apply for a loan to provide them with paid leave.
A report commissioned by the Committee for Economic Development of Australia (CEDA) proposes establishing a HECS-style loan system that would fund up to nine months' of paid leave.
The think tank recommends that a 'user-pays' approach could be used to supplement government-funded maternity and paternity leave, enabling parents to access more paid leave if they chose to do so.
According to a new paper by the committee, politicians need to adopt a more progressive approach to parental leave in order to improve current provision for parents and businesses.
Davis Byers, chief executive of CEDA, stated: "Most of the current debate centres around consideration of proposals for a much shorter period of paid maternity leave of 14 weeks funded by the government.
"A longer period of parental leave would provide a better opportunity for maintaining a parent's longer-term attachment to the workforce. It would also increase the likelihood that parents would return to work with the same employer."
The report proposes creating a scheme offering a loan of around $14,000 to parents wanting to stay at home with their children for six months, complementing a government-funded scheme providing 14 weeks of paid maternity leave.
Created by economists Professor Bruce Chapman and Tim Higgins of the Australian National University, the plans include a repayments system that would come into force when households cross a certain income threshold.
HECS-HELP is a loan provided to students by the Australian Government, which pays the loan amount directly to the higher education provider and records the debt with the tax office.
Find and apply online for the best loan deals

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