In Australia, men and women’s work lives look pretty similar until a baby comes along. Once women become mothers, they’re more likely to hit pause on their careers, switch to part-time gigs, and see their paychecks shrink. This isn’t just an Aussie drama; it’s a global trend. However, Australia’s “motherhood penalty” is a real plot twist, with moms losing a jaw-dropping 55% of their income—a penalty that drags on for at least a decade.
Australia’s female workforce participation is oddly low, and part-time work is high—despite Australian women being highly educated in the job market. This might seem strange, but it’s really not a surprise considering our extremely expensive, for profit childcare system. It no secret that women do most of the unpaid child caring especially during the early years of parenthood. With average families spending 24% of their earnings on childcare (even with subsidies), it’s no wonder moms are often working part-time or stepping out of the workforce.
The Productivity Commission seems to think this is just moms’ “choice,” rather than a result of unaffordable childcare. But the ACCC’s final report says otherwise: the cost of childcare definitely affects how much it gets used.
If early childhood education were affordable and accessible for everyone, we’d likely see a shift in these so-called “choices.” For instance, in 2009, 48% of moms with young kids were out of the workforce; by 2021, that dropped to 32%. This shows that policy changes really impact employment decisions.
We need better, more affordable childcare and flexible workplaces to boost women’s participation and tackle gender inequality in the job market. The Productivity Commission was supposed to pave the way for this change but seems to think the system is just fine—except for low-income families. In reality, families of all incomes are struggling, and it’s high time Australia made childcare a genuine priority for everyone.