Senate debates

Thursday, 9 February 2023

Bills

Customs Legislation Amendment (Controlled Trials and Other Measures) Bill 2022, Paid Parental Leave Amendment (Improvements for Families and Gender Equality) Bill 2022, Work Health and Safety Amendment Bill 2022; Second Reading

4:47 pm

Photo of Katy GallagherKaty Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | | Hansard source

I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

CUSTOMS LEGISLATION AMENDMENT (CONTROLLED TRIALS AND OTHER MEASURES) BILL 2022

The Customs Legislation Amendment (Controlled Trials and Other Measures) Bill 2022 will amend the Customs Act 1901 (Customs Act) to establish a new regulatory framework (known as Regulatory Sandboxes) to undertake time-limited trials of trade and customs practices and technologies, with approved entities, in a controlled regulatory environment, before committing to legislative change.

Regulatory Sandboxes ensure regulation keeps pace with industry developments, remains fit-for-purpose and does not become a barrier to innovation and productivity. This is among the first regulatory sandbox mechanisms identified within a Customs framework, worldwide.

The Bill will enable the modification or waiver of existing licensing, importing and exporting obligations under the Customs Act, for trial periods of up to 12 to 18 months.

The Bill seeks to encourage innovation through testing new customs practices and technologies, as well as regulatory approaches and business models, with appropriate safeguards.

Results from trials will build the evidence base to inform longer-term regulatory reform and simplification of Australia's trade system, while maintaining and achieving Australia's border security objectives.

The Bill will enable Australia's whole-of-Government Simplified Trade System agenda, which seeks to simplify and digitise the trade system to deliver tangible benefits for Australian businesses, enable trade growth and better protect the community.

More streamlined and innovative Customs practices and technologies will lead to reduced costs and delays for businesses operating at the border, having flow on effects and benefits to consumers.

The Bill will also make a number of technical amendments to the Customs Act, including to provisions relating to Notices of Intention to Propose Customs Tariff Alterations to clarify the legislative arrangements for these instruments.

PAID PARENTAL LEAVE AMENDMENT (IMPROVEMENTS FOR FAMILIES AND GENDER EQUALITY) BILL 2022

Improving paid parental leave is critical reform. It is critical for families, it is critical for women and it is critical for the economy.

The Albanese Government know this.

We know that paid parental leave is vital for the health and wellbeing of parents and their children.

We know that investing in paid parental leave benefits our economy.

And we know that done right, paid parental leave can advance gender equality. We heard these messages loud and clear at our successful Jobs and Skills Summit in September, where gender equality and economic reform went hand in hand.

Businesses, unions, experts and economists all understand that one of the best ways to boost productivity and participation is to provide more choice and more support for families—and more opportunity for women.

That is why Paid Parental Leave reform was a centrepiece of our first Budget, and is supported by the whole Cabinet for the clear benefits it will bring.

The Prime Minister himself said at the time, "a parental leave system that empowers the full and equal participation of women will be good for business, good for families and good for our economy."

We are on the right track. This Bill, the Paid Parental Leave Amendment (Improvements for Families and Gender Equality) Bill 2022, implements the first tranche of the Government's Paid Parental Leave changes announced in the Budget.

It introduces a range of important structural changes to modernise the Paid Parental Leave scheme to ensure it better meets the needs of Australian families. Crucially, the Bill gives more families access to the Government payment, provides parents more flexibility in how they take leave, and encourages them to share care to support gender equality.

These changes, to commence from 1 July 2023, are the first stage of the Government's reforms and lay the foundation for expansion. Then, from July 2024, we will progressively increase the scheme by six weeks until it reaches 26 weeks in 2026—a full six months. This is the largest expansion since Labor established the scheme in 2011.

I am pleased that our changes have been widely welcomed by family and gender advocates, and employer and unions groups, including the ACTU, the Business Council of Australia, the Parenthood, Minderoo's Thrive by Five Foundation, Chief Executive Women and the Equality Rights Alliance.

This is a significant reform, driven by our commitment to get the settings right to maximise women's economic equality. That is why we are introducing the reform in two stages—to take immediate first steps to improve the scheme through this Bill, and to give us time to work through the options for expansion, drawing on expert advice. This includes advice from the independent Women's Economic Equality Taskforce, which the Government has asked to examine the optimal model for the additional six weeks to maximise women's economic equality.

This Bill, and the expansion to 26 weeks by 2026, reflects the Government's commitment to deliver better outcomes for families and advance economic equality for women. The roughly 180,000 families who receive the payment each year will benefit from a fairer, more flexible and more generous scheme. Not only will our changes help families better balance work and care, but they will also support participation and productivity over the longer term, providing a dividend for the Australian economy.

Australians need a Paid Parental Leave scheme that reflects the needs of modern families.

The current scheme does not do enough to provide access for fathers and partners. Currently, dads take Government-paid leave at roughly half the rate of mums. The scheme as it stands today is built on gendered assumptions of 'primary' and 'secondary' carers, which limit parents' ability to share care. Our Bill fixes this.

The current scheme does not treat families equally. The eligibility rules are unfair to families where the mother is the higher income earner. You could have two families with a household income of $200,000—one family is eligible because the father is the primary income earner; the other is ineligible because the mother is the primary income earner. Our Bill fixes this.

Under the current scheme, a father or partner who is a citizen or permanent resident can be ineligible purely because the birth mother doesn't meet the income test or residency requirements. Our Bill fixes this.

From 1 July 2023, the Bill delivers six key changes:

1. combining the two existing payments into a single 20 week scheme,

2. reserving a portion of the scheme for each parent to support them both to take time off work after birth or adoption,

3. making it easier for both parents to access the payment by removing the notion of 'primary' and 'secondary' carers,

4. expanding access by introducing a $350,000 family income test, under which people can qualify if they do not meet the $156,647 individual income test,

5. increasing flexibility for parents to choose how they take paid parental leave days and transition back to work, and

6. allowing eligible fathers and partners to access the payment irrespective of whether the mother or birth parent meets the income test or residency requirements.

It is critical this Bill passes both Houses by March next year, so parents expecting to give birth or adopt on or after 1 July 2023 have the option of pre- claiming three months in advance, so they can receive their Government entitlement as soon as they are eligible.

Currently, there are two payments under the Government scheme. Parental Leave Pay, which provides up to 18 weeks of payment, is primarily targeted to mothers, while Dad and Partner Pay provides up to two weeks of payment to fathers and partners.

Under this Bill, Parental Leave Pay and Dad and Partner Pay will be combined to form a single 20 week payment that can be shared between both parents.

This will give parents more choice and flexibility in how they use and share care, better reflecting how Australian families want to parent.

One of the features of the current scheme is a period of leave for exclusive use by fathers and partners, in the form of Dad and Partner Pay. Our changes preserve this important feature by reserving two weeks of the payment for each parent. By incorporating this reserved portion under a single scheme, rather than as a stand-alone payment, we are making sharing of parental leave between parents a central part of the scheme. This Bill supports both parents to take leave beyond the two-week reserved period. Importantly, single parents will be eligible for the full 20 weeks.

Another significant benefit of the move to a single 20-week scheme is it allows fathers and partners to receive the Government payment at the same time as employer-paid leave. While this is currently available to mothers, legislation requires fathers and partners to be on unpaid leave in order to receive Dad and Partner Pay.

Fixing this inequity removes a financial disincentive for fathers and partners to access the scheme and take time off work to care for a child.

Allowing both parents to claim the Government payment alongside employer- paid leave makes it easier for them to maintain their income while caring for their child, and should result in more dads taking leave.

The Government has been very clear on the role employers should play—the Government's 20-week scheme is the baseline—a national minimum standard. We are encouraged that there are already enlightened employers across Australia competing to offer working parents the best possible deal.

We know what happens when both parents are not supported to take time off paid work to care for their babies—usually mum works much less, or leaves the workforce altogether to take on caring responsibilities, while dad remains in full-time work. This pattern persists for years after the child's birth and is a key driver of gender gaps in workforce participation and earnings.

The Government supports dads and non-birth parents to share the load of caring responsibilities. We know that when they do, it benefits everyone. When fathers take a greater caring role from the start, this establishes patterns of shared care that continue throughout the child's life. In addition to benefits for women and their economic equality, there are also physical, mental and social benefits for men and their children.

The changes in this Bill send a clear message that the Government values men as carers too, and we want to see that reinforced in workplaces and our communities.

This Bill improves gender equality and inclusion under the scheme by removing the notion of 'primary' and 'secondary' carers and allowing all eligible parents to claim the payment. Currently, mothers must make a successful claim for Parental Leave Pay, and then transfer the payment to their partner if they wish to share some or all of it.

This process is complex, administratively burdensome and makes it difficult for fathers and partners to take leave, even when it is in the best interests of the family. In 2021-22, less than one per cent of mothers transferred some of the payment to the father or a partner.

The new, simpler claiming process will also allow eligible fathers and partners to qualify if the mother or birth parent does not meet the income test or the residency requirements. Over 2,000 additional fathers and partners

will have access to the scheme each year because of this change.

The shift to a gender-neutral claiming process is also important because it is more inclusive and recognises that Australian families are diverse.

To guard against any negative consequences for mothers resulting from the new process, the birth parent will have to approve the amount of leave claimed by the other parent.

The Bill will also introduce a family income limit of $350,000, which will operate alongside the existing individual income limit (currently $156,647 per annum). Parents, including single parents, will be eligible for the payment if they meet either the individual income or the family income test.

With the introduction of a family income limit, families will no longer be denied access solely because of the income of the mother. This change is expected to particularly benefit families where the mother is the primary income earner, with nearly 3,000 additional parents becoming eligible each year as a result.

This change is long overdue—between the 2010 and 2017 financial years, the number of women with a taxable income of more than $150,000 has more than doubled. The introduction of a more generous family income test will help ensure the scheme keeps up with the times.

The Government is improving flexibility for families to balance work and family life in a way that best suit their needs. Currently, Parental Leave Pay is split into a 12-week period that must be taken in a continuous block, within 12 months of the birth, followed by six weeks that can be taken flexibly, within two years from the date of birth or adoption.

Currently, if a parent returns to work before the end of their continuous 12-week Paid Parental Leave period, they forfeit any remaining days of the 12-week period. This limits choice for parents, and particularly mothers, in how they transition back to work.

Under these amendments, parents can take all of the payment in multiple blocks, as small as a day at a time, within two years of the birth or adoption of the child. This flexibility will support mothers to return to work whenever they wish, without the risk of losing their entitlements. This will particularly benefit parents who work part-time or are self-employed to continue working after a birth or adoption.

Of course, some birth parents may still wish to take most or all of the payment in a continuous block, and the legislation supports parents to do this if they choose.

We know this is an important option to support physical and mental health and breastfeeding, particularly for mothers who do not have access to any employer- paid leave. Supporting maternal and child health and development remains an important objective of the Paid Parental Leave scheme.

In addition, both parents will have the option of taking Government-paid leave on the same day for up to 10 days of the payment. This will help parents share caring responsibilities from the start, and help dads and partners care for mothers to support their health and wellbeing.

In summary, it is critical that our Paid Parental Leave scheme supports modem Australian families—a scheme that is flexible, fair and drives positive health, social and economic outcomes for both parents and their children. This Bill does just that. Crucially, it gives more families access to the Government payment, provides parents more flexibility in how they take leave, and encourages them to share care to support gender equality.

This Bill is good for parents, good for kids, good for employers and good for the economy.

I commend the Bill.

WORK HEALTH AND SAFETY AMENDMENT BILL 2022

Last year one hundred and sixty-nine workers were fatally injured at work in Australia.

Each of these deaths is a tragedy. Each of these deaths represents a family member who will never come home, a friend or co-worker lost forever. Each of these deaths is preventable.

One death is too many.

The Albanese Labor Government is serious about improving work health and safety in Australia.

The Work Health and Safety Amendment Bill 2022 implements recommendations from the review of the model work health and safety laws, conducted by Ms Marie Boland in 2018.

I would like to thank Ms Boland for her considered examination of the model work health and safety laws and her important recommendations.

I would also like to acknowledge those families who have lost a loved one at work for giving their time to speak or write to Ms Boland. You continue to fight tirelessly to improve the system that let you down to ensure that others do not have to face the same heartbreak as you have.

The Boland report contained 34 recommendations.

So far, not one of the recommendations requiring legislative change has been implemented in the Commonwealth jurisdiction—but this Bill will change that.

The Bill doesn't address the most critical recommendations, but its swift implementation signals how serious this Government is about taking action on work health and safety.

We can do better, we will do better. This Bill is the first step.

Most significantly, the Bill expands the most serious offence under the Commonwealth's current work health and safety laws to include negligence as a fault element. The bar for conviction is currently set too high. This change means that both reckless and grossly negligent employers who expose workers to serious risks will face the most serious consequences and penalties.

The Bill will prevent a person required to pay a penalty under the law from recovering that penalty under a contract of insurance. The penalties in the Act are there as a deterrent. Allowing companies to take out insurance against these penalties makes workplace injuries just another cost of doing business. Prohibiting such insurance forces businesses to take their work health and safety duties seriously. No longer will a statutory penalty just be another line on a balance sheet that an employer can recover from their insurer, while a family has lost a loved one in a workplace fatality.

The Bill clarifies that a health and safety representative is able to choose their own course of training and removes the requirement for the health and safety representative to make this decision 'in consultation with the person conducting a business or undertaking'.

We are also introducing amendments to align service notice provisions to ensure clarity and consistency across the Work Health and Safety Act.

The Bill also amends the Safe Work Australia Act 2008 to clarify that information may be shared with Safe Work Australia when the information is relevant to their statutory data and evidence functions. Safe Work Australia publishes data that is central to work health and safety and workers compensation policy development. Without a decent body of substantive data, governments are limited in their ability to develop good policy that solves real issues. In particular, Safe Work Australia maintains and publishes the Traumatic Injury Fatalities database and the National Data Set for Compensation-Based Statistics, without which we would have no clear view of the extent of work health and safety issues in Australia. This sensible amendment will ensure that Safe Work Australia can continue receiving information necessary to its research and data publication efforts.

Safe Work Australia undertook extensive tripartite consultation seeking feedback on implementing key recommendations of the Boland Review in the model Work Health and Safety laws. This involved consultation across all jurisdictions and with union and employer representatives. In June 2022, the model Work Health and Safety Bill was amended in line with this process.

This Bill would harmonise the WHS Act with the recent changes to the model Work Health and Safety laws.

This Bill is only the beginning, there is still much left to do to make Australians safer at work.

The federal Australian Labor Party has consistently supported the introduction of an industrial manslaughter offence. This Government will take action to put it back on the agenda.

In 2022 we find ourselves in a situation where workers are contracting silicosis. This is an incurable disease, and it is unacceptable that Australian workers face this hazard. Urgent action is needed to protect workers from future harm and to support those who have already been failed. This Government hears the calls for urgent reform. We are committed to getting national traction on this issue.

We also recognise the link between the workplace relations and the work health and safety frameworks.

Consultative, cooperative workplaces are safe workplaces.

Secure jobs, where workers can raise safety concerns without being scared that they will lose their job, are safe jobs.

Workplaces that have a culture of fairness, respect diversity, and promote equality are also healthy workplaces.

In the Secure Jobs Better Pay Bill, the Government has introduced reforms that will see more workers in good jobs: jobs with security, fair pay and proper protections.

We are also implementing the recommendations of the Respect@Work report to eliminate sexual harassment in the workplace.

These significant reforms will have a positive impact on the safety of Australian workers and their workplaces.

This Bill does not solve all these big issues. This is just the beginning of this government's journey to implement the recommendations of the Boland report. With this Bill, the Albanese Labor government is getting on with the job of delivering safe workplaces for all Australian workers. Every Australian worker should be able to go to work and come home to their loved ones safely at the end of each day.

Debate adjourned.

Ordered that the bills be listed on the Notice Paper as separate orders of the day.