House debates

Thursday, 27 May 2010

Paid Parental Leave Bill 2010; Paid Parental Leave (Consequential Amendments) Bill 2010

Second Reading

12:39 pm

Photo of Yvette D'AthYvette D'Ath (Petrie, Australian Labor Party) Share this | Hansard source

I rise to speak in support of the Paid Parental Leave Bill 2010 and cognate bill. Can I say how proud I am to be part of a government that is delivering a paid parental leave scheme for the first time ever in this country. This bill will benefit many workers and many families across this country. This bill introduces Australia’s first national, government funded, paid parental leave scheme from 1 January 2011. Parental leave pay will be provided for up to 18 weeks at the national minimum wage and be paid to eligible primary carers who have or adopt a child on or after 1 January 2011 and who can satisfy work, income and residency tests. In most cases the mother will be the primary carer, but allowance is also made for transfers of all or part of the payment to the other parent or to another carer in exceptional circumstances.

From 1 July 2011 parental leave pay may be claimed through the Family Assistance Office up to three months before the birth or adoption. The government will fund employers to pay their eligible long-term employees as part of the scheme. Eligible claimants who are not paid by their employers will be paid by the Family Assistance Office. This bill also contains integrity provisions, such as compliance rules for employers and right of review for employees to ensure that parental leave pay is paid to eligible parents in a timely manner. Any delays, disputes or debts that may arise in the payment process will be managed appropriately by the Family Assistance Office and the Fair Work Ombudsman, depending on who is making payments. Other family payments, such as the baby bonus and the family tax benefit, will remain available for families not eligible for the scheme and for those who choose not to participate in the scheme. An eligible parent could also receive family tax benefit part A while participating in the scheme.

This bill is part of a package of bills which will include the consequential amendments to related legislation, including family assistance, income tax and child support. This package of bills will provide necessary consequential amendments and transitional arrangements associated with the introduction of what will become the new Paid Parental Leave Act 2010, including phasing in the participation of employers in the scheme. Employers may opt to provide any eligible employee with parental leave pay from 1 January 2011. The requirement for employers to pay parental leave pay to their eligible long-term employees will take effect from 1 July 2011.

I said before that this will provide a significant benefit for families across this country. This is long overdue. Australia has been one of only two OECD countries, along with the United States of America, which do not have a comprehensive paid parental leave scheme. The Rudd government’s decision is historic. We have committed $731 million over five years to Australia’s first comprehensive paid parental leave scheme from 1 January 2011. The scheme will cost approximately $260 million per annum and provide paid parental leave to approximately 148,000 new parents per year.

We have heard from a number of members on the other side about their views on paid parental leave. Before I comment on some of the views that have been expressed here today in speaking on this bill, I think it is important that we go back and look at the past comments and views of those who we have already heard from today. The Leader of the Opposition, Mr Tony Abbott, is now out there espousing the importance of paid parental leave. But the reality is that he has always opposed paid parental leave, even saying that he would see it introduced over the Howard government’s dead body.

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