Mon, 30 Jun 2008 11:08:25 GMT

HECS-style for parental leave.

According to ABC News, HECS architect, Bruce Chapman has finally released his proposal for paid parental leave using an income-contingent loan (through CEDA). His baseline idea, which I have endorsed many times, is that parents will be given income support during maternity leave in the form of a loan that will be paid back through the tax system. This is a fair way of approaching the issue, is compatible with government support (both minimum wage paid leave and return to work tax credits) and is easily funded.

Now I haven’t seen the final version of the report but my only quibbles are the emphasis on maternity as opposed to parental leave and I think that the base for repayments needs to be based on household rather than individual income.

[Update: OK I have seen the final version. Sadly, it is not publicly available. You need to pay CEDA for it. But they have moved to a household income test and parental leave in general. So much for quibbles.]

[CoreEcon]