Why Europe is the wrong model for paid parental leave

If we can draw one lesson from the experience of Britain and the other European states now forced into austerity, it is that the cost of new entitlements and promises gradually add up— until suddenly the bill is simply too big to manage.

Under the Howard government, yearly increases in family payments became the norm. Family tax benefits A and B, the baby bonus and childcare benefits were introduced, expanded or increased under the Coalition.

Labor is not immune to lavishing cash on families either. Besides paid parental leave, the Rudd and Gillard governments have introduced a bonus for older children who stay in school or training, as well as significant tax refunds for school uniforms and education expenses. In 2009, the Rudd government paid a $950 cash "back to school bonus" for every child in a low or middle income family.

On a per capita basis, Australia is among the most generous countries in the world when it comes to providing financial support for families with children.

And while there is always some group or other lobbying for increased spending on families, there are very few voices asking when it is appropriate to stop.

There has been an extensive public discussion about paid parental leave over the past few years. Now that we've decided we want it, let's have a discussion about where the money should come from— and what other spending we should cut to meet the cost. Otherwise, we risk ending up like Britain.