Introduce a single entitlement to one year of leave per family. This would be shared as preferred by the parents, with an equal split as the default. All leave should be paid at usual salary, partly funded by the government, and partly by the employer (with larger employers contributing more).
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The gender pay gap is mostly driven by women reducing time at work to care for children. Many young couples want to share work and childcare more equally but find it financially difficult with the current government policy. Reform can support more gender equal parenting, enabling more active fatherhood and empowering women at work.
Additionally, birth rates are at a historic low. Urgent action is needed so young people can afford to have kids, including well-paid parental leave.