ANZ introduces new childcare allowance, but SMEs will struggle to match offer

ANZ has announced a new childcare allowance worth $4,000 in order to promote top-tier talent returning to work after taking paid parental leave, but SMEs leaders say more should be done to help smaller businesses offer similar allowances.

COSBOA chief Peter Strong says more should be done to promote tax breaks for smaller businesses implementing onsite childcare schemes and offering to pay for childcare for their employees.

ANZ said today the measure will be introduced in order to “attract and retain talented women”. The childcare allowance also comes alongside a number of new measures including the payment of super on all forms of paid parental leave.

In New Zealand, paid parental leave will be increased from 12 to 14 weeks. The measures have been announced in conjunction with the launch of the EOWA Women in Leadership Census.

“The 2010 EOWA Census results show that Australian companies are making little progress in improving the representation of women in senior executive roles and on boards,” chief executive Mike Smith said in a statement.

“Improved access to affordable childcare is an important factor in a parent’s decision to return to the workforce. The measures we’ve announced are intended to have an immediate impact on our ability to retain talented women and over time help increase the number of senior women at ANZ.”

The $4,000 allowance will be paid to primary caregivers after their return to work and will work alongside the existing paid parental leave scheme, which offers 12 weeks at full pay.

The announcement comes after rival banks, including NAB and Westpac, have introduced parental leave benefits for its workers. But Council of Small Business of Australia chief executive Peter Strong says more should be done to encourage childcare at SMEs.

“It’s a good move by ANZ. But what worries me is that we can’t seem to get the same support from government. Of course the majority of SMEs are good people and want to help but they won’t issue any benefits if it’s going to cost them too much money.”

Strong says extra tax benefits could be introduced to allow SMEs to introduce onsite childcare, and other services that would help women return to work. He also says more businesses should emphasise the “personal relationship” SMEs are able to offer their female employees.

“I think the strength of what SMEs offer is that personal relationship with their employees. We can’t even compete in terms of offering these services, but the fact is, there are many people who are happy with their life and processes in small business and we should emphasise that.”

“There are a lot of people who work in big business, and yes, they have bigger programs, but to many bigger businesses you’re just a number. And that’s the difference between SMEs and bigger corporations.”

Nareen Young, chief executive of the Diversity Council of Australia, says she also believes it’s time to consider what could be done to help SMEs.

“I do think we need to start thinking about that, and the childcare issue more broadly as well. There are a lot of inequities starting to develop. We do have a childcare crisis in this country.”

“So congratulations to ANZ, that’s great, but there is also an understanding that we need to get the wider employment to introduce such methods, including SMEs.”