Louise Markus (Macquarie, Liberal Party) Share this | Hansard source

I rise today to speak on the Paid Parental Leave Amendment Bill 2014. I will first make some comments about the contribution of the member for Shortland. Her comments with regard to the pension are absolutely scurrilous and false. The pension will not be cut. What will alter is how people's pensions increase. People's pensions will continue to increase.

This bill will benefit small business across our nation, with a common-sense approach to a very important sector. The coalition came to the 2013 election with a clear direction to reduce red tape for business. For too long, small business have been shackled by regulation, paperwork and compliance costs. These costs, in both dollars and time, stunt productivity and hinder growth. This bill is another small step in the right direction with regard to reducing red tape. It is a small step, but altogether these bills will make a real-life difference for the day-to-day running of businesses, particularly in the electorate of Macquarie.

This bill takes the 'pay clerk' burden of the Paid Parental Leave scheme away from small business if they so wish—they can opt in if they wish to—and shifts the administration back to the Family Assistance Office. It provides choice for small business. From 1 July 2014, employees will be paid directly by the Department of Human Services, unless the employer opts in to provide parental leave pay to its employees and an employee agrees for their employer to pay them. Removing the mandatory employer role under the Paid Parental Leave scheme will help reduce administration and compliance costs on employers. While this may seem like a simple shift, the difference it will make will be significant. It will save business $44 million a year and the not-for-profit sector $4 million a year.

Earlier this year I was honoured to host the Minster for Small Business, the Hon. Bruce Billson, in the Macquarie electorate. As the minister and I sat and listened to small business operators from the Hawkesbury and the Blue Mountains, the issues became clear: small business owners do not have the time or resources to deal with the excessive regulatory burden that has been placed upon them. They want to be free to run their businesses, run their companies, without the need to employ one extra person just to comply with regulations. There are over 10,000 small businesses in the Macquarie electorate. These small businesses employ local people, produce local goods and are the pillar of our local economy. I want them to continue to see a reduction in the regulatory burden. It is important for them to thrive, with confidence and the capacity to build and grow their businesses. The estimated compliance cost reduction for New South Wales alone would be $14,377,000—over $14 million.

This bill has an interesting history in the chamber, and I would like to comment on it briefly. The Labor government's Paid Parental Leave scheme was given royal assent on 14 July 2010. On 24 February 2011, Labor voted down the member for Dunkley's private member's bill to remove the 'pay clerk' burden from business for the Paid Parental Leave scheme. On 24 May 2012, Labor voted down the coalition's amendment to remove the 'pay clerk' burden from business for the Paid Parental Leave scheme. On 5 March 2014, in the Senate, Labor and the Greens sought to amend the coalition government's amendment to remove the 'pay clerk' burden from business for the Paid Parental Leave scheme, instead limiting it to businesses with fewer than 20 employees, essentially blocking the coalition government's amendment. Finally, on 19 March 2014, as a part of the coalition's commitment to hold a repeal day, Minister Billson introduced a bill to remove the 'pay clerk' burden from business for the Paid Parental Leave scheme.

The inability of Labor to support this notion since its inception shows their complete lack of credibility when it comes to supporting small business or understanding the challenges facing small business. It shows that small business are facing a challenge from the other side of politics. I would like to remind the House that, in the five years from mid-2007, Australia's multifactor productivity declined by nearly three per cent. During this time, Labor introduced more than 975 new or amended pieces of legislation and over 21,000 additional regulations. The Productivity Commission has estimated that regulation compliance costs could amount to as much as four per cent of Australia's GDP. We cannot afford to keep hindering growth and productivity. We are in government to send a clear message that Australia is 'open for business'. We are on track to deliver our commitment of the $1 billion annual target for cutting red and green tape. This bill contributes in some small way towards that.

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