The Federal Coalition’s new paid parental leave scheme could have a knock-on positive effect for brokers, according to the FBAA.
National president, Peter White, says having children is a difficult time for families paying off a home as ‘mortgage payments keep going’.
“Two income families paying a mortgage will obviously be in a better financial position, reducing mortgage stress,” he says.
White believes the reduced pressure will give couples more confidence when entering into a long-term mortgage, which will have spin-off benefits to brokers and everyone else involved in the finance and housing sectors.
“There are many industries relying on the housing market, so I’d imagine the potential benefits to the overall economy are immeasurable.”
Tony Abbott announced the scheme, which will offer new mothers a 26-week replacement wage scheme from July 1, 2015, at a media conference yesterday.
Women earning up to $150,000 a year will be paid their full wage for the period of leave, including superannuation.
Fathers will be eligible for two weeks paternity leave at their actual wage or the national minimum wage (whichever is greater), plus superannuation.