Will Abbott’s PPL cost as much as high-speed rail? > Check the facts
Who: “If we were to build this entire 1,748km high-speed rail project by 2035 it would cost less than Mr Abbott’s unaffordable, unfair paid parental leave scheme over the same period of time,” Prime Minister Kevin Rudd.
The claim: Building the high-speed rail project over 21 years would cost less than the Coalition’s paid parental leave (PPL) scheme.
The facts: The Coalition’s paid parental leave scheme will cost $5.5 billion per year. It will replace Labor’s paid parental leave scheme which costs $2 billion per year. This means that the Coalition’s scheme will cost the budget an additional $3.5 billion per year.
The Coalition’s scheme will therefore cost the budget an additional $73.5 billion from 2014 to 2035. This is in 2012 dollars and assumes no behavioural change because of the scheme.
A government study found that high-speed rail on the east coast of Australia between Brisbane and Melbourne via Sydney and Canberra would cost $114 billion. This is in 2012 dollars.
The finding: When we deduct the cost of Labor’s PPL scheme from the cost of the Coalition’s scheme then the Coalition’s scheme costs less by 2035 than high-speed rail between Brisbane and Melbourne.
Discussion of evidence: The Coalition’s PPL scheme would cost the budget an additional $73.5 billion from 2014 till 2035. This is the cost of the scheme minus the cost of Labor’s scheme which would be in place if the Coalition’s scheme is not introduced.
High-speed rail would cost $114 billion which is more than the Coalition’s PPL not less.
The only way the Coalition’s scheme would cost more is if Labor was proposing to scrap its own PPL scheme. This is not the case.
Between the Lines Newsletter
The biggest stories and the best analysis from the team at the Australia Institute, delivered to your inbox every fortnight.
You might also like
Facts are among the biggest casualties in the war against renewable energy
Around this time 12 years ago, Barnaby Joyce stood up and declared the average family lamb roast was about to cost $100.
If the GST worked properly, it would pay for Australia’s biggest infrastructure projects – new analysis
New analysis by The Australia Institute reveals that Australian states and territories are being short-changed tens of billions of dollars in GST revenue – enough to pay for some of the nation’s biggest infrastructure projects.
Turnbull was right – but it’s government that really matters
On the eve of his defeat as Liberal Party leader in 2009, Malcolm Turnbull gave an interview to press gallery legend Laurie Oakes that still shocks hardened political watchers today.


