Ursula Stephens (NSW, Australian Labor Party, Parliamentary Secretary for Social Inclusion and the Voluntary Sector) Share this | Hansard source

Clause 98 of the bill ensures that payment of an instalment of parental leave pay is not relevant for the purposes of the provision of any Commonwealth, state and territory law dealing with workers compensation or accident compensation. The purpose of that provision is to ensure uniformity and consistency across jurisdictions and to avoid the need for amendments to relevant state and territory legislation. What it does is create certainty for employers regarding the intended interaction between the government’s Paid Parental Leave scheme and workers compensation laws.

On your question about payroll tax: parental leave pay will also be exempt from payroll tax under the Australian government’s Paid Parental Leave scheme due to start on 1 January 2011. The government has confirmed that employers providing parental leave pay to their eligible employees will not be liable for payroll tax under current state and territory payroll legislation. The treasurers from all states and territories have provided advice to confirm this—that is, that parental leave pay under the Australian government scheme is exempt. The government has welcomed this advice and appreciates and wants to thank state and territory governments for their consideration of this issue.