Pauline Hanson says parental leave will force small businesses to ‘fold’ – despite no law forcing employers to pay

Pauline Hanson stated this week that small businesses would "fold" due to the costs associated with providing paid parental leave, a claim that Labor suggested indicated a misunderstanding of the policy's implementation. Hanson clarified that her concern was not about eliminating Australia's taxpayer-funded parental leave entitlements. In Australia, employers are not legally mandated to pay for parental leave, although the majority of businesses offer it as a benefit. Employees are entitled to 12 months of unpaid parental leave under current legislation. The discussion arose during a period of political debate concerning budget and economic policies, including potential changes to capital gains tax and negative gearing.