Jenny Macklin (Jagajaga, Australian Labor Party, Minister for Families, Housing, Community Services and Indigenous Affairs) Share this | Hansard source

I thank the opposition for providing this opportunity to deal with the Paid Parental Leave Bill 2010 at this point. I indicate to the House that the government proposes that amendments (1), (15) and (23) be agreed to and that amendments (2) to (14) and (16) to (22) be disagreed to. I suggest, therefore, it may suit the convenience of the House if we first consider amendments (1), (15) and (23), which are the ones we are going to agree to, and when those have been disposed of then consider amendments (2) to (14) and (16) to (22). Therefore, I move:

That Senate amendments (1), (15) and (23) be agreed to.

I will briefly explain the implications of what the government proposes. The Senate has returned to the House the Paid Parental Leave Bill 2010 and the Paid Parental Leave (Consequential Amendments) Bill 2010 with a series of amendments. The government moved a number of these amendments in the Senate in response to the recommendations of the Senate inquiry and will obviously be accepting these amendments in this place. These government amendments, firstly, insert an object clause in the bill; secondly, clarify that an employer’s obligation to provide parental leave pay under the bill is additional to any other obligation of the employer, in particular an obligation to provide employer funded paid parental leave; and, thirdly, insert a clause to give effect to an existing commitment of the government to have a comprehensive review of the Paid Parental Leave scheme. I indicate to members opposite that these amendments were all agreed to in the Senate when they were debated there. That may help the opposition in their consideration.

For the information of those opposite I will also take this opportunity to refer to the amendments that we will not be accepting. We will not be accepting the amendments moved by the opposition in the Senate to remove employer involvement in Paid Parental Leave. Employer involvement is a central element of the Paid Parental Leave scheme and we want paid parental leave to be considered a normal part of employers supporting women after giving birth to take leave from work to care for their children. The bill’s intention is that women maintain their attachment to the workforce while they are having their family. Women will maintain that strong connection by receiving their government funded parental leave pay through their employers as they would receive any other work entitlement.

Employers will benefit from the scheme through the retention of skilled staff without having to fund the scheme. Our scheme is government funded, not paid for by an increase in the company tax rate for certain companies. For the information of those opposite, only nine per cent of all businesses and only three per cent of small businesses will be involved in Paid Parental Leave in any given year.

To help employers prepare for the scheme, the role of employers in providing government funded parental leave pay will be phased in over the first six months to align with the new financial year. Employers will only be required to pay an employee where they have received sufficient funds. Employers will provide parental leave pay on a business-as-usual basis; they will not be required to lodge regular reports with the Family Assistance Office or establish special bank accounts. Parental leave pay will be paid in accordance with an employer’s normal pay practice and the employee’s usual pay cycle. There is no payroll tax and no workers compensation payable. Paid parental leave will be implemented in close consultation with employers, including through the Paid Parental Leave Implementation Group. This element of the bill, employer involvement in payment for long-term employees, was recommended by the Productivity Commission as it sends a very strong message that taking leave from work around the time of a birth is a normal part of work and family life. The bill is fair to business and fair to families.

The passage of this legislation today is a landmark reform for Australian families. It is the result of a lot of hard work by generations of Australian men and women. Its passage today will be a tribute to each and every one of them. I commend the bill, as amended, to the House.

See this speech in context