Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Hansard source

I will take this interjection. I talk to businesses every single day, day and night, every weekday and every weekend. The message they're giving me, Senator Henderson, is that they like what they see with the Anthony Albanese Labor government. They like what they see because they know that not only are we a pro-worker government but also we are a pro-business government. You can do both. You can help workers in this country, as we are doing with this legislation; and you can help businesses. Of course, what we've done with this piece of legislation is do exactly that: help workers and help businesses.

The role of employers in the Paid Parental Leave scheme is not changing under this bill. Employers play an important role in maintaining a connection to work for parents and, particularly, women time off to care for children. Roughly five million Australians work in small businesses with fewer than 20 employees. In designing the changes, the government carefully considered impacts on business. The government has made sure that with this bill employers don't face any new regulatory burdens when paying paid parental leave.

Evidence to the Senate committee inquiry on this bill demonstrated that our changes, particularly the increased flexibility, will benefit employers and employees, without any additional administrative burden on businesses. Did you hear that, Senator Ruston? I'll repeat it for you because I know you weren't listening: evidence to the Senate inquiry on this bill demonstrated that our changes, particularly the increased flexibility, will benefit employers and employees, without any additional administrative burden on business. Throughout the Senate inquiry on the bill no submissions or witnesses raised the mandatory employer role as an area of significant concern, not even the peak body representing small businesses, the Council of Small Business Organisations of Australia.

We know that nearly 40 per cent of businesses who administer paid parental leave pay to their employees choose to do so. They opt in even though they were not required to under the legislation. Businesses administer paid parental leave because it's a workforce entitlement not a welfare payment. It was the Productivity Commission that recommended businesses administer PPL payments so that mothers maintain a connection with their employer while on leave. Taking this approach means that women are more likely to return to work and employee turnover falls, which is obviously good for business, particularly small business.

Clearly, concern about the employer role is not a unanimous viewpoint. The Minister for Social Services—who is doing a terrific job, I have to say—has offered to work with Senator David Pocock to investigate the issue and see if there is a need to find solutions. Today we've committed to support a reference to a committee and agree that we consult with Senator Pocock on the terms of reference for that reference.

We're bringing forward another bill on PPL, prior to July 2024, to implement the expansion of the 26 weeks. This provides an opportunity to consider findings from the consultation process. We are very willing to consider what improvements can be made but we don't agree to a change that may have unintended negative consequences, including for mothers' connection to work. We need a clear understanding of the issue and implications of any change before it's enshrined in legislation, and our reference will do this. The Australian people and prospective parents deserve nothing less.