Senate debates

Wednesday, 16 June 2010

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

In Committee

12:36 pm

Photo of Chris EvansChris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Hansard source

I am a big target. The government will not be supporting these amendments. I understand the argument that Senator Hanson-Young puts and I have a couple of things to say about it. Firstly, we think the amendment is a bit unclear and its consequences are unclear. We are not sure of all the implications of the amendment. Having said that, that is not the basis of our opposition. Under this proposal, it appears that both employers and government would be required to meet the cost of introducing compulsory superannuation contributions on parental leave pay. It appears that the level of contribution of each of these parties for a person would depend on that person’s circumstances.

The key principle is that the bill does not provide for superannuation contributions on parental leave pay and Senator Hanson-Young seeks to amend the bill to bring about a change so that superannuation contributions will be paid. Our approach is in line with the Productivity Commission’s final report, which proposed that superannuation contributions under the scheme be delayed until after the review of the scheme. As I say, I understand the reasons for the amendments moved by Senator Hanson-Young. I share her concern about lifetime superannuation contributions of women and the inequities in the scheme. It has been an issue I have been engaged with for many years from my early days in the Senate when I was on the Senate Select Committee on Superannuation as it then was.

As I understand it, the current superannuation guarantee legislation does not require employers to make contributions while persons are on private parental leave arrangements, so the super guarantee legislation does not require it. Some employers apparently do; some do not. But, in line with the Productivity Commission report, we have decided not to support superannuation contributions on parental leave pay at this stage. It is something that we have picked up under the review of the scheme. Like many of the issues, I think this reflects Senator Hanson-Young and the Greens’ desire that it go further. I understand that. This is about the government having worked to reach a proposition that is workable and broadly supported, and while it does not deliver everything some people would want we think it is a major reform. It is a good scheme; it will deliver for working parents. As I say, while a superannuation payment is not included at this stage, it is something that we will take up in the review in line with the Productivity Commission’s final report.

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