Michaelia Cash (WA, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Hansard source

I very much appreciate that additional clarification. I may have some further questions. I know Senator Waters will have some questions in relation to the bill generally. I will continue to ask away. This is in relation to the rate of pay. Again, small and family business understand the current leave arrangements in the Fair Work Act, in particular as they apply to casuals with a 25 per cent loading. This decision goes beyond what the Fair Work Commission itself had recommended in three aspects which we've been discussing.

In relation to the rate of pay, these are questions that have been put to me by small and family businesses in particular—hence why I am seeking answers on Hansard, so they can refer to them.

If I can go to what are referred to as, say, contingent entitlements. Contingent entitlements or work related allowances are payments above the base rate of pay. Normally leave is paid at the base rate of pay under the Fair Work Act. The government has determined that in this case it will be paid at the full rate of pay. In terms of the contingent entitlements or work related allowances, payments above the base rate of pay relate to the work that the employee is participating in. For example, they are made to employees who do certain tasks, have a particular skill they use at work, use their own tools at work, work in unpleasant or hazardous conditions, incur an expense for doing their job. Then you have a look at—and I know you'd be familiar with them—common allowances, for example hot work allowances, cool room allowances, confined spaces allowances and travel allowances. The issue has now arisen that because the government has moved towards what the ACTU had put forward, as opposed to what the Fair Work Commission has stated, there is genuine confusion amongst businesses about how they should actually calculate the rate of pay.

I'm just going to take you through a few scenarios to try and seek guidance, on Hansard, for businesses to actually turn to, in the event that they are confronted with certain scenarios very similar to what we just went through.