Pauline Hanson’s stance on paid parental leave and childcare could turn clock back by decades, economists warn | Australian politics

One Nation could turn back the clock for working mothers by decades, damaging productivity and worsening gender inequality, economists have warned.

In a controversial speech at the National Press Club on Wednesday, Pauline Hanson suggested women should not receive wages from their employers while on maternity leave. He also signaled major changes to the child care system and called for family income sharing to encourage families to stay home with their children.

The One Nation leader told the press club: “If women are taking leave and not getting paid because they’re not working, that’s fair enough. Why should businesses pay? But they’re not at work. That’s the difference. That’s why the pay gap exists.”

Paid parental leave is not mandatory for employers, but many offer it as a way to attract staff, and all employees are entitled to 12 months of unpaid leave. From July 1, the government’s paid parental leave scheme will offer parents 26 weeks at the national minimum wage.

Leonora Risse, associate professor of economics at Queensland University of Technology, said the move away from paid leave could have serious financial consequences for women.

“Questioning these policies actually means going back decades ago when there was no level playing field and the gender gap was much wider,” Risse said.

“This not only has financial consequences for women, but it also sets women back in terms of decision-making, having financial independence, having a say, and having status and respect in society.”

Competitive paid parental leave enables women to stay in the workforce longer and increase productivity, Risse said.

“If women can maintain their participation and commitment to the workforce and their employers throughout their childbearing years, that will be positive for productivity because it ensures a good job match,” she said. “We worked really hard to validate this and prove that it benefits productivity as well as well-being.”

Guardian Australia asked One Nation if it would continue to support government-funded paid parental leave, but the party did not respond.

Hanson also pushed for income sharing for families with at least one dependent child; This may encourage low-wage parents to stay at home or work less to care for their children. The policy, which also exists in other countries including France, will allow both parents to add their income and split the total, meaning the income will be subject to two tax-free thresholds.

One Nation’s website says the policy will “encourage parents to care for their own children and reduce the cost to the state of child care, particularly pre-school, while also encouraging home education.”

Independent economist Silvia Griselda said policies to encourage women to stay at home could lead to skills shortages and the need for more migration.

“Women tend to be more educated than men on average, so if you want half the workforce not to work, that means we’re kind of limiting the growth and productivity of the Australian economy.

“[And] “If there is a skills shortage in Australia, Australia needs to overcome this through immigration.”

Risse said income sharing needs to be carefully designed to ensure women can remain financially independent.

“One of the ways that gender equality policies have progressed over time is that women have really gained the right to have their own bank account, their own financial flow, and not be dependent,” she said.

“Income sharing may seem potentially fair in practice, but it also introduces potential risk or compromise to women’s financial independence.”

Hanson also called for an overhaul of the child care system, which costs about $16 billion a year. In his speech, he said the system was “completely out of control” and needed to be investigated, and said he wanted the money to go directly to parents rather than childcare providers.

“I was a mother of four children. I did not have a college degree to care for my children. Why are we now expecting these child care centers to have students or people with some kind of degree who can care for children?” said Hanson.

Caroline Croser-Barlow, CEO of early learning advocacy group The Front Project, said child care is essential for working parents.

“We have an economy that expects two parents to work and then says we’re not willing to invest in high-quality, safe environments for your child,” Croser-Barlow said.

“You wouldn’t let a plumber work on a house without a plumbing map, right? So why would you let people take care of your kids, develop their brains, without having the opportunity to learn and understand what really works?”

He said paying parents directly pose a “very high risk of fraud” and could compromise quality and safety.

Griselda said the policies put together would harm households and the economy.

“What he’s saying is, we don’t like paying taxes, we need to lower taxes, so we shouldn’t be paying for parental leave or child care. Let’s let mom stay at home. That will definitely limit the economy in the long run, even in the short run.”