Malarndirri McCarthy (NT, Australian Labor Party, Assistant Minister for Indigenous Australians) Share this | Hansard source

I thank all those who have contributed to this important debate on this bill, the Paid Parental Leave Amendment (More Support for Working Families) Bill 2023. I note the Community Affairs Legislation Committee has examined the bill ahead of Senate consideration. Delivering their report on 5 February, the committee recommended the Senate pass the bill. I was very pleased to see strong support for the bill from a diverse range of family, employer and community groups; unions; gender experts; and economists. I acknowledge that in the committee's report and this second reading debate some of the crossbench have called on the government to further invest in PPL.

I am proud of the strides our government has made since coming to office, and we know there is more to do. The government recently announced we will pay super on PPL from July 2025, which will help normalise parental leave as a workplace entitlement like annual and sick leave and reduce the impact on retirement incomes. We also know gender pay gaps at retirement are primarily driven by gender pay gaps in working life. Investing in paid parental leave is one part of the government's multibillion-dollar and long-term agenda to support women's economic opportunity.

It's worth remembering the government payment is a minimum entitlement designed to complement leave provided by employers, who also have a key role to play. Data collected by the Workplace Gender Equality Agency shows the proportion of businesses providing their own paid parental leave has increased over the last decade. Nearly two-thirds of employers offer their own entitlement, up from fewer than half a decade ago. This positive trend demonstrates that employers increasingly see themselves as having a role alongside government in providing paid parental leave, recognising it is a workplace entitlement rather than a welfare payment. We absolutely want to see this trend keep growing.

The comments we have heard from the opposition and some of the crossbench about removing the employer from the equation risks undermining recent progress to normalise PPL as a workplace entitlement. The Productivity Commission recommended the employer role to promote workplace retention and gender equality. In considering potential administrative impact, the Productivity Commission found that, in any given year, only four per cent of small businesses would need to administer PPL for an employee. Subsequently, an independent evaluation of the PPL scheme, conducted by the University of Queensland over a four-year period, found employers generally experienced a few difficulties in administering the payment and costs were very minimal in terms of both time and money.

Administering the payment is a reasonable contribution from employers, who significantly benefit from the government providing PPL to their employees. Each year, the government spends around $460 million to provide PPL to employees in small businesses. Moreover, two recent Senate committees heard compelling evidence from women's groups, family advocates, economists and unions about how the employer role in administering PPL is important for promoting gender equality. These groups have expressed significant concern with the idea that small businesses shouldn't have to administer the payment. The ACTU said this would be a huge backward step for gender equality. PPL 'should be perceived as a normal feature of employment arrangements' rather than welfare. Jess Rudd from The Parenthood said: 'Parents will lose the umbilical link to their employer or have to go through Centrelink. I've run a small business. I'm all for cutting red tape, but this is just bad policy.' Dr Angela Jackson, a leading economist, said 'it would be a really retrograde step' and 'while it might small time administrative gain for small businesses, the long-term competitive disadvantages will hurt them as a sector. It'll certainly hurt the women that are working for them, and it will hurt the broader economy.'

The government shares the view of the Productivity Commission, women's groups, family advocates, economists and trade unions. Paid parental leave is a workplace entitlement that should be administered by employers. Governments, businesses and unions should be working together to ensure paid parental leave entitlements are as strong and inclusive as they can be. I commend the bill.