Federal budget boost to parental leave, childcare could lift women's workforce participation
ABCIn 1971 a High Court judge said that the cost of childcare for a single mother was not a deductible tax expense. "It is not really such a big support, to be honest," Emilia says, noting she's originally from Poland and Alex is from Germany, where both parental leave and childcare incentives are more generous. "For many women, they're working part time, they've got children in care, what you find is that when you add in tax, the clawback of welfare benefits and those out-of-pocket childcare costs, they're losing 80/90, even 100 per cent of their additional income from going three to four or four to five days a week," Ms Wood says. "That would cost about $600 million a year, on top of about the $2.3 billion that the government currently spends on parental leave," Ms Wood says. She supports Grattan's policies on childcare and parental leave, but stresses that there needs to be an adequate safety net for lower-income women who are out of paid work often in caring responsibilities.