Senate debates

Monday, 6 March 2023

Bills

Paid Parental Leave Amendment (Improvements for Families and Gender Equality) Bill 2022; Second Reading

10:02 am

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

I'm very pleased to stand today to speak on the Paid Parental Leave Amendment (Improvements for Families and Gender Equality) Bill 2022. The opposition will be supporting this bill for a number of reasons, and we are glad to see the government has chosen the implement the former coalition government's reforms to paid parental leave which we announced as part of our March 2022 budget. The bill will provide increased flexibility, improve choice and ensure the Paid Parental Leave scheme is fit for purpose for modern families.

The bill increases the total number of weeks of available paid parental leave from 18 to 20 and removes some of the constraints around the two-week period of dad and partner pay and the 12-week/six-week paid parental leave period breakdowns currently in place. We understand the importance of these changes because we know parents make household decisions around caring arrangements to reflect their own personal circumstances, so increasing the number of weeks from 18 to 20, with enhanced flexibility on how those weeks can be shared, reflects this need for choice and flexibility in modern households. It is also important both parents are able to spend the time they choose to spend with their new child, and the increased flexibility encourages both parents to have a period of leave.

The bill removes the notion of primary, secondary and tertiary claimants, taking away some of the rigidity that exists—about who takes the leave, when and how—between the two parents. This bill also expands access to the scheme by introducing a $350,000 income test, which will ensure household income is considered when determining eligibility for PPL, rather than just the individual income of one of the two parents. We strongly support the increased flexibility this bill achieves, which allows parents to use the leave over a two-year period in a way they choose. This allows parents to take leave in one block, in multiple blocks or in whatever way works best for them and their particular family circumstances.

This reform goes to the heart of what the former coalition government sought to achieve in enhancing PPL, which is why we're pleased that our announcements from the March 2022 budget are included in this bill. The coalition has a strong record of supporting government funded paid parental leave, and through my former role as minister for social services I was very proud to be part of a government that made important amendments to strengthen paid parental leave during the last term of parliament. Our PPL scheme gave families flexibility in choosing how they accessed their payments, giving either parent the option, depending on individual households' circumstances, with the last six weeks being able to be shared or taken any time. Importantly, we introduced special circumstances, allowing a parent to meet the work test if they'd been impacted by family and domestic violence, by a natural disaster or by a severe medical condition. We allowed JobKeeper and the COVID-19 disaster payments to count towards the work test for PPL to prove a genuine connection to the workplace, and we introduced indexation on the income threshold for the first time since the scheme was introduced.

As this legislation implements, in the Women's Budget Statement in March 2022 we again underlined our strong commitment to the social and economic benefits of paid parental leave by announcing enhanced paid parental leave. Our enhanced paid parental leave represented an investment of $346.1 million over five years to expand PPL, giving working families full choice and control over how they used their 20 weeks of taxpayer-funded paid parental leave.

So, once again, the coalition will support this bill, given the vast majority of changes reflect the important reforms that we announced as part of our last budget to enhance the scheme and ensure parents are able to make their own caring arrangements based on their individual circumstances. We will support the government in any sensible measures that seek to support Australian families, particularly where those measures reflect the former coalition government's policies. I'm proud the coalition was a real steward of paid parental leave in government, and our enhancements to the scheme saw it become a mainstay in every Australian life. But, where there are enhancements and improvements that can be made, we will absolutely make sure that we stand with those improvements if they are to the benefit of Australian families.

At its heart, paid parental leave should make it easier for parents to make decisions that work for their particular families, that give them the opportunity to spend important time with their new child, unencumbered by the pressures of work where they choose to do so. The changes in this bill that provide greater flexibility for families to determine how they use those 20 weeks of leave reflect the changes in modern families, but this legislation also maintains what is a timeless aspect of paid parental leave, and that is the need to give parents time with their child. We absolutely understand the importance of paid parental leave in alleviating some of the additional pressures felt by families with the birth of a child, and we know that those pressures are particularly strongly felt at the moment, with cost-of-living pressures only rising under this government.

Of course, we'll support good and sensible reforms to paid parental leave, to ensure families are supported through the scheme to take off some of these significant pressures. We'll happily support this bill, acknowledging that a huge number of the changes and a significant proportion of the increased flexibility that this bill delivers were adopted from the policies of the coalition, who announced these important reforms in 2022. I commend the bill.

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