Scott Morrison (Cook, Liberal Party, Minister for Social Services) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This bill introduces the 2015 budget measure that will provide a fairer Paid Parental Leave scheme. From 1 July 2016, this measure will ensure government-funded payments under the Paid Parental Leave scheme are more fairly targeted to parents who do not also have sufficient access to employer-provided parental leave or similar payments.

Parents will no longer be able to receive employer-provided primary carer leave payments (or other like payments) as well as the full amount of parental leave pay under the Paid Parental Leave scheme.

Parents who are entitled to receive employer-provided payments in excess of the total amount of parental leave pay under the Paid Parental Leave scheme will not receive any parental leave pay under the Paid Parental Leave scheme.

Parents who are entitled to receive employer-provided payments of less than the total amount of parental leave pay under the Paid Parental Leave scheme will receive a top-up to ensure they can access the maximum rate.

This measure recognises the primary role of government-funded parental leave payments as a safety net. Payments should be aimed at people who need them most because they cannot access employer-funded payments at all or cannot access payments of the same value as, or higher than, the Paid Parental Leave scheme payments.

Some minor amendments are being made to the Paid Parental Leave scheme, including providing more generous backdating provisions so parents have more time to lodge a claim in certain circumstances.

This bill also takes the opportunity to reintroduce the measure provided by the Paid Parental Leave Amendment Bill 2014, which is currently before the Senate.

To reduce the red-tape burden and compliance costs on business, the measure removes the requirement for employers to provide government-funded parental leave pay to their eligible long-term employees.

From 1 April 2016, employees will be paid directly by the Department of Human Services, unless an employer opts in to provide parental leave pay to its employees and an employee agrees to their employer paying them.

Importantly, this measure is strongly supported by the business community. In a member survey conducted by the Australian Chamber of Commerce and Industry in May 2013, 84.3 per cent of businesses agreed or strongly agreed that the government should not require employers to be paymasters for the Paid Parental Leave scheme.

The government is committed to continuing to reduce red tape burdens for business, including new and established businesses, as a critical step towards improving Australia's productivity. Unnecessary red tape hinders innovation, investment and job creation.

Debate adjourned.