Senate debates

Wednesday, 18 September 2024

Bills

Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024; In Committee

12:04 pm

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

by leave—I move opposition amendments (1) to (5) on sheet 2854 together:

(1) Schedule 1, item 4, page 3 (before line 27), before the definition of base contribution, insert:

additional leave election means an election made under subsection 115AB(3).

(2) Schedule 1, item 4, page 4 (after line 15), after the definition of nominal interest rate amount, insert:

one-off payment election means an election made under subsection 115AB(4).

(3) Schedule 1, item 4, page 4 (after line 30), after the definition of SG charge percentage, insert:

superannuation election means an election made under subsection 115AB(2).

(4) Schedule 1, item 5, page 6 (before line 1), before Chapter 3A, insert:

Chapter 3AA — Paid Parental Leave additional entitlements

Part 1 — Elections in relation to entitlements

Division 1 — Guide to this Part

A person is eligible for additional entitlements for an income year if the Secretary pays one or more PPL funding amounts or instalments for the person during the income year.

A person can elect to benefit from the PPL superannuation contribution under Chapter 3A, additional parental leave pay under Part 2 of this Chapter or a one-off payment under Part 3 of this Chapter.

Division 2 — Elections in relation to entitlements

115AA Persons who may make elections

(1) A person may make an election under section 115AB for an income year if either or both of the following apply:

(a) a PPL funding amount relating to the person is paid under section 75 in the income year by the Secretary to an employer of the person;

(b) an instalment is both:

(i) payable to the person under section 63; and

(ii) paid under section 84 in the income year by the Secretary to the person.

(2) For the purposes of paragraph (1)(a), disregard any amount of a PPL funding amount that is a debt due to the Commonwealth under subsection 168(2).

115AB Elections under this section

(1) A person who may make an election under this section for an income year:

(a) may make an election under subsection (2), (3) or (4) for the income year; and

(b) must not make more than one election under this section for the income year.

(2) The person may elect for Chapter 3A (Paid Parental Leave Superannuation Contributions) to apply to the person for the income year. Such an election is a superannuation election.

(3) The person may elect for Part 2 of this Chapter (additional parental leave pay) to apply to the person for the income year. Such an election is an additional leave election.

(4) The person may elect for Part 3 of this Chapter (one-off payment) to apply to the person for the income year. Such an election is a one-off payment election.

(5) If the person does not make an election for an income year by the time specified in the PPL rules, the person is taken to have made a superannuation election for the income year.

115AC Requirements for making elections

(1) The PPL rules must prescribe requirements relating to the making of an election under section 115AB.

(2) Without limiting subsection (1), the PPL rules must prescribe requirements in relation to the following:

(a) who the election must be given to;

(b) what form the election must be made in;

(c) what information must be included in, or with, the election;

(d) when the election must be made by.

(3) Without limiting subsection (1), the PPL rules may make provision for and in relation to any other matter relating to the making of elections under section 115AB.

Part 2 — Additional parental leave pay

Division 1 — Guide to this Part

115AD Guide to this Part

A person who makes an additional leave election for an income year is entitled to additional parental leave pay for the income year. The PPL rules must set out the amount of the payment and other requirements relating to the payment.

Division 2 — Additional parental leave pay

115AE Persons to whom this Part applies

This Part applies in relation to a person for an income year if the person has made an additional leave election for the income year.

115AF Additional parental leave pay

(1) The person is to be paid an amount of parental leave pay for the income year in addition to any amount of parental leave pay that is payable to the person for the income year under another provision of this Act.

(2) The amount of additional parental leave pay payable to the person under subsection (1) is to be worked out in accordance with the PPL rules.

(3) The PPL rules must make provision for and in relation to the following matters:

(a) how the payment is to be made to the person;

(b) when the payment is to be made to the person;

(d) the review of a decision relating to the payment;

(e) matters relating to reporting and record-keeping.

(4) The PPL rules may make provision for and in relation to any other matter relating to the payment.

(5) This section has effect despite any other provision of this Act.

Part 3 — One-off payment

Division 1 — Guide to this Part

115AG Guide to this Part

A person who makes a one-off payment election for an income year is entitled to be paid an amount for the income year. The PPL rules must set out the amount of the payment and other requirements relating to the payment.

Division 2 — One-off payment

115AH Persons to whom this Part applies

This Part applies to a person for an income year if the person has made a one-off payment election for the income year.

115AJ One-off payment

(1) The person is to be paid an amount for the income year.

(2) The amount payable to the person under subsection (1) is to be worked out in accordance with the PPL rules.

(3) The PPL rules must make provision for and in relation to the following matters:

(a) how the payment is to be made to the person;

(b) when the payment is to be made to the person;

(d) the review of a decision relating to the payment;

(e) matters relating to reporting and record-keeping.

(4) The PPL rules may make provision for and in relation to any other matter relating to the payment.

(5) This section has effect despite any other provision of this Act.

(5) Schedule 1, item 5, page 6 (before line 19), before section 115B, insert:

115BA Persons to whom this Chapter applies

This Chapter applies to a person for an income year if the person has made a superannuation election for the income year (see section 115AB).

The coalition is really pleased to be putting forward these amendments today. We hope the chamber will give consideration to supporting them, because we know that one of the most important things that we can offer Australians, no matter what policy we're talking about, is the flexibility and control to make decisions about their lives, instead of the government dictating to them in the most minute detail how they go about their lives. So the coalition's amendments provide that, if a family that is intending to take paid parental leave does not wish to take the superannuation payment in the way that has been prescribed by the government in this bill, instead they could have two additional choices in terms of how they might benefit from the legislation that is currently before us today. The first choice would be to allow them to take an extra two weeks of government funded paid parental leave, so, instead of 26 weeks, it would be 28 weeks once the scheme is at maturity. Alternatively, they could take the superannuation as a one-off lump sum payment.

I think anybody who has had children will know that the birth of a child—as fantastic as that is in a family—is often a time when financial considerations are much more acute in the family. So we are putting forward an amendment to this bill to give greater choice and control back to families when they're having a child so that they can make decisions about what best suits their own financial and personal circumstances. That's because one of the things that we believe, as the coalition, is that Australians should be able to make choices about their money and shouldn't be dictated to by the government. It's about giving families greater flexibility and control because we believe families are the ones who are best equipped to make decisions about themselves and not the government. So I commend these amendments to the chamber, and I hope that those in here will see the benefit and the wisdom of allowing Australian families to have that greater flexibility.

Before the amendments are voted on, I am keen to ask the minister some questions on the bill. One aspect of the greater flexibility that the coalition put in place was around making sure that parents could choose how they took their paid parental leave, meaning that it was not just the mother or one partner who was able to get access to paid parental leave but that both partners are be able to do so. Minister, what happens—and how will it be managed through the system—if both partners decide that they want to take paid parental leave? How will those payments be divided?

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