Anne Ruston (SA, Liberal Party, Shadow Minister for Health and Aged Care) Share this | Hansard source

I rise to speak on the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024. I want to state at the outset that, whilst the coalition will be supporting this bill, I will be moving a substantive amendment at the appropriate time to give further choice and control to Australian families.

From the government's perspective, paid parental leave has been quite a tortuous path. Those of us with any history or background in this whatsoever remember the incisive criticism of the then Labor opposition in relation to the former coalition government's generous Paid Parental Leave scheme—a scheme that the Australian people voted on in 2010 and 2013 and that the Labor Party vehemently opposed. The coalition's landmark policy was essentially wage replacement paid parental leave, which included superannuation. But, despite the very unprincipled position that the Labor Party adopted in relation to paid parental leave in the past, we have sought to be much more constructive as the opposition. Where the government has put forward sensible ideas, we have supported them. Indeed, we have supported a range of measures in relation to paid parental leave. The changes contained in this bill essentially seek to extend superannuation contributions to paid parental leave. As I have already touched on, the Albanese government is 14 years late on this reform—but, I suppose, better late than never.

The coalition has long supported the economic security of women and families. We delivered the landmark funding of $5.5 billion through our two women's budget statements; key amendments to paid parental leave legislation while in government, which included introducing special circumstances, which allow a person to meet the work test if they've been impacted by family and domestic violence or a natural disaster or a severe medical condition; allowing JobKeeper and COVID-19 disaster payments to count towards the work test for paid parental leave to prove a genuine connection to the workplace; and indexation of the income threshold for the first time since the scheme was introduced.

In March 2022, as part of the women's budget statement, the coalition underlined its commitment to PPL by announcing enhanced paid parental leave. Enhanced paid parental leave would have seen an investment of $346.1 million over five years to expand PPL, giving working families full choice and control over how they used the 20 weeks of taxpayer funded paid parental leave. Under these measures, the coalition sought to expand the scheme by combining the existing two weeks of dad and partner pay with the 18 weeks paid parental pay to create a single payment; making the 20-week payment fully flexible for eligible working parents so they can share the entitlement between them as much or as little as works for their specific circumstances within two years of their child's birth or adoption; and broadening the income test to allow a household income eligibility test of $350,000 per annum, providing an additional 2,200 families with access to the PPL scheme.

The changes announced by the coalition in March 2022 sought to reduce the complexity of PPL and increase support to new families while ensuring the scheme continued to support the health and wellbeing of birth mothers. It was pleasing to see the government adopt the sensible measures of the former coalition government following the election. The Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 will add superannuation contributions to the Commonwealth funded Paid Parental Leave scheme.

The bill also makes minor technical amendments to the Fair Work Act 2009 relating to unpaid parental leave.

The key measures in schedule 1 will establish a paid parental leave superannuation contribution entitlement as part of the scheme; provide for the calculation of the amount of the PPLSC and the manner in which this amount is to be paid; create mechanisms for the Commissioner of Taxation to correct under- and overpayments of the scheme; provide an avenue for recipients to seek a review of PPLSC decisions made by the commissioner; and give the commissioner new compliance and enforcement powers to assist with the administration of the scheme. Schedule 2 of the bill contains a minor technical amendment to the unpaid parental leave provisions of the Fair Work Act 2009, to clarify the entitlement to keeping-in-touch days, and amendments to the Income Tax Assessment Act 1997 and the Taxation Administration Act 1953 that are consequential to the paid parental leave superannuation contribution related amendments in schedule 1 to this bill.

It is estimated that 180,000 families would benefit from the changes in this bill when the PPL scheme reaches 26 weeks by 2026. The maximum a family would receive in superannuation contributions would be $3,000, based on a superannuation guarantee rate of 12 per cent. From 1 July 2025, for both born and adopted children, parents eligible for the Commonwealth's PPL scheme will receive an additional 12 per cent of their paid parental leave as a contribution direct to their superannuation fund. The contribution will match the superannuation guarantee rate of the year the PPL is taken, as at 1 July of that year. The contribution is to be made by the ATO after the conclusion of each financial year, with an additional interest component to address any foregone fund earnings that may have occurred had the payment been made on a regular basis.

In recognition that it has never been more expensive to raise a family, and in line with the coalition's commitment to support the choices of Australians, the coalition will seek to amend the legislation to introduce more flexibility into the Commonwealth's Paid Parental Leave scheme. Under the coalition's amendment, Australian parents eligible for government funded paid parental leave will be able to choose to receive superannuation on the government funded paid parental leave payment; receive 26 weeks of paid parental leave from 1 July 2025, increasing to 28 weeks from 1 July 2026; or receive a one-off payment equal to the value of the superannuation amount, to help with the costs associated with the arrival of a newborn or adopted child. The amendment seeks to do two things. It seeks to provide parents of a newborn or adopted child with an additional two options: they can choose to take the additional superannuation contributions on PPL payments as outlined in this bill, or they can choose one of the two additional options. Firstly, they could elect to take an additional two weeks of PPL so that, at each stage over the next two years, they could elect to take an additional two weeks more than they would otherwise have been entitled to. Secondly, they could take a one-off payment. We think parents are in the best possible position to determine, in their own circumstances, what it is that they need.

For many Australians, one of the primary purposes of paid parental leave is to provide them with the financial flexibility they need at a special and beautiful time of their lives—the arrival of a newborn or adopted child. Providing parents with the option of taking those two extra weeks leave is something that we think the government should absolutely support. Every parent knows that spending time with their new arrival is worth far more than the financial benefit. Finally, we know how difficult it is, generally, for families, with the cost-of-living crisis they are facing, so providing them with an additional option of being able to take the equivalent amount to the PPL superannuation as a lump sum is a worthwhile amendment. Anyone in this place and anyone watching this who has a child, many of whom, I suspect, have never had the benefit of PPL, know that it's an extraordinarily difficult time financially, so providing these additional options for parents is treating them with the respect they deserve.

On that, we hope the government will see that it is a good idea and will support it. While the coalition will be supporting this bill, our amendments that will be moved offer further choice and control to the Australian families taking paid parental leave.