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senate vote 2023-03-06#4

Edited by mackay staff

on 2023-03-10 13:03:19

Title

  • Bills — Paid Parental Leave Amendment (Improvements for Families and Gender Equality) Bill 2022; in Committee
  • Paid Parental Leave Amendment (Improvements for Families and Gender Equality) Bill 2022 - in Committee - Small business

Description

  • <p class="speaker">David Pocock</p>
  • <p>At this stage, I will not be moving my amendments, after some discussions with the government. I have raised the concerns around the burden that this is going to place on small businesses. I accept that there is an argument for medium and large businesses to maintain the interaction and the connection between the employer and the employee in administering PPL. In my discussions with small businesses, small tweaks to payroll can result in not insignificant time. Even a half hour, an hour or two extra hours to do payroll adds up if you are a small business. In 2010, this was raised by small business groups and small businesses. In 2014, there was a Senate committee hearing on this, and it was raised again.</p>
  • The majority voted against [amendments (1) to (10)](https://www.openaustralia.org.au/senate/?gid=2023-03-06.33.1) on sheet 1832 moved by South Australian Senator [Anne Ruston](https://theyvoteforyou.org.au/people/senate/sa/anne_ruston) (Liberal), which means it failed.
  • ### What does the amendment do?
  • Senator Ruston [explained that](https://www.openaustralia.org.au/senate/?gid=2023-03-06.33.1):
  • > *... This pay clerk function of the PPL scheme is something we have long supported so as to remove the unnecessary red tape that's associated with the administration of this really important initiative that has got the bipartisan, or the multipartisan, support of this place. We certainly believe that small businesses and stakeholders and industry groups generally don't support the employer role in the administration of PPL payments because it adds a burden to what is already a very onerous life as a small business operator in this country.*
  • <p>I don't understand why we can't address this. What I'm proposing to government is 12 months to set up a system where small businesses can opt in or opt out of this requirement, to give them the flexibility. Should they be topping up PPL, as some small businesses are, and they want to administer it then they should be able to do that. They shouldn't be forced into a situation where they have to take on this extra administrative burden, particularly as we begin to increase paid parental leave in Australia, which I'm fully supportive of. The evidence is so clear that this a good thing for children, for parents, for families and for our community. This is something that I really would like dealt with by the government. I would like small businesses to be heard. And I would really like to know from the government and the department, in coming up with these changes, which small businesses and small business peak bodies were consulted.</p>
  • <p class="speaker">Larissa Waters</p>
  • <p>I will just make a brief contribution. I'm pleased to hear that Senator D Pocock will not be moving his amendments. We had some concerns that the effect of those amendments&#8212;whilst well-intentioned to try to relieve the administrative burden on small business, which we're conscious of as well&#8212;would be to further sever the connection between the work place and a new parent.</p>
  • <p>This is a work place entitlement, and our concern is that we seek to strengthen that relationship. The whole point of having paid parental leave is to make sure that the connection to the work place is maintained and women's economic participation after the birth of a child can continue, and that they are supported and encouraged to go back into the work force when they so choose. So, I'm just placing on record that we would not have supported those amendments, and we're pleased that they're not being moved today.</p>
  • <p class="speaker">Anne Ruston</p>
  • <p>by leave&#8212;I move amendments (1) to (10) on sheet 1832 together:</p>
  • <p class="italic">(1) Clause 2, page 2 (table item 1), omit the table item, substitute:</p>
  • <p class="italic">(2) Schedule 3, heading, page 57 (line 2), at the end of the heading, add "relating to Schedules 1 and 2".</p>
  • <p class="italic">(3) Schedule 3, item 2, page 57 (line 19), after "amendments made by", insert "Schedules 1 and 2 to".</p>
  • <p class="italic">(4) Schedule 3, item 2, page 57 (line 26), after "amendments made by", insert "Schedules 1 and 2 to".</p>
  • <p class="italic">(5) Schedule 3, item 2, page 58 (line 7), after "amendments made by", insert "Schedules 1 and 2 to".</p>
  • <p class="italic">(6) Schedule 3, item 2, page 58 (line 14), after "amendments made by", insert "Schedules 1 and 2 to".</p>
  • <p class="italic">(7) Schedule 3, item 2, page 59 (line 13), after "amendments made by", insert "Schedules 1 and 2 to".</p>
  • <p class="italic">(8) Schedule 3, item 7, page 61 (line 4), after "amendments or repeals made by", insert "Schedules 1 and 2 to".</p>
  • <p class="italic">(9) Schedule 3, item 7, page 61 (line 9), before "this Act", insert "Schedules 1, 2 and 3 to".</p>
  • <p class="italic">(10) Page 61 (after line 24), at the end of the Bill, add:</p>
  • <p class="italic">Schedule 4 &#8212; Payment of instalments</p>
  • <p class="italic"> <i>Pai</i> <i>d Parental Leave Act 2010</i></p>
  • <p class="italic">1 Section 4 (paragraph beginning "Part 3-5")</p>
  • <p class="italic">Repeal the paragraph, substitute:</p>
  • <p class="italic">Part 3-5 is about employer determinations. If an employer determination is in force for an employer and a person, the employer must pay instalments to the person, unless the employer employs less than 50 employees. In that case, the employer may elect to pay instalments to the person. The Secretary must be satisfied that certain conditions have been met before the Secretary can make an employer determination.</p>
  • <p class="italic">2 Section 6 (definition of <i>acceptance notice</i> )</p>
  • <p class="italic">Omit "section 103", substitute "paragraphs 103(1)(a) and (2)(a)".</p>
  • <p class="italic">3 Section 6 (definition of <i>employer determination</i> )</p>
  • <p class="italic">Omit "section 101", substitute "subsections 101(1) and (1A)".</p>
  • <p class="italic">4 Section 6</p>
  • <p class="italic">Insert:</p>
  • <p class="italic"><i>non-acceptance notice</i>: see paragraph 103(2)(b).</p>
  • <p class="italic">5 Section 100 (paragraph beginning "This Part")</p>
  • <p class="italic">Repeal the paragraph, substitute:</p>
  • <p class="italic">This Part is about employer determinations. If an employer determination is in force for an employer and a person, the employer must pay instalments to the person, unless the employer employs less than 50 employees. In that case, the employer may elect to pay instalments to the person.</p>
  • <p class="italic">6 Section 100 (paragraph beginning "If the Secretary makes")</p>
  • <p class="italic">Repeal the paragraph, substitute:</p>
  • <p class="italic">If the Secretary makes an employer determination for a person and the person's employer and the employer employs 50 employees or more, the employer must:</p>
  • <p class="italic">(a) give the Secretary certain information to enable the Secretary to pay the employer PPL funding amounts for the person; or</p>
  • <p class="italic">(b) apply for review of the employer determination under Part 5-1 or 5-2.</p>
  • <p class="italic">If the Secretary makes an employer determination for a person and the person's employer and the employer employs fewer than 50 employees, the employer may elect to pay instalments to the person. If the employer does not make an election, the Secretary must pay instalments to the person.</p>
  • <p class="italic">7 Subsection 101(1)</p>
  • <p class="italic">Omit "under this section", substitute "under this subsection".</p>
  • <p class="italic">8 After paragraph 101(1)(a)</p>
  • <p class="italic">Insert:</p>
  • <p class="italic">(aa) the employer employs 50 or more employees; and</p>
  • <p class="italic">9 After subsection 101(1)</p>
  • <p class="italic">Insert:</p>
  • <p class="italic">(1A) The Secretary must make a determination under this section (the <i>employer determination</i>) that a person's employer is to pay the person instalments if the Secretary is satisfied, when making the determination, that:</p>
  • <p class="italic">(a) either:</p>
  • <p class="italic">(i) a payability determination under section 13 or 14 that parental leave pay is payable to the person for a child is in force; or</p>
  • <p class="italic">(ii) an initial eligibility determination under section 26A for the person in relation to a child is in force; and</p>
  • <p class="italic">(b) the employer employs fewer than 50 employees; and</p>
  • <p class="italic">(c) the employer has made an election under section 109 to pay instalments and that election applies to the person; and</p>
  • <p class="italic">(d) the person has consented in the claim to the employer paying instalments to the person; and</p>
  • <p class="italic">(e) the person has a continuous flexible period for the child and is likely to be an Australian-based employee of the employer during that period; and</p>
  • <p class="italic">(f) there are no other flexible PPL days prior to the person's continuous flexible period in respect of which:</p>
  • <p class="italic">(i) parental leave pay is payable to the person for the child; or</p>
  • <p class="italic">(ii) the person is initially eligible for parental leave pay for the child; and</p>
  • <p class="italic">(g) the employer has an ABN.</p>
  • <p class="italic">10 Paragraph 101(3)(a)</p>
  • <p class="italic">After "subsection (1)", insert "or (1A)".</p>
  • <p class="italic">11 Paragraph 101(3)(b)</p>
  • <p class="italic">After "paragraph (1)(a)", insert "or (1A)(a)".</p>
  • <p class="italic">12 Subsection 101(4)</p>
  • <p class="italic">Omit "subsection (1)", substitute "subsections (1) and (1A)".</p>
  • <p class="italic">13 At the end of section 101</p>
  • <p class="italic">Insert:</p>
  • <p class="italic"> <i>Calculating number of employees</i></p>
  • <p class="italic">(7) For the purpose of calculating the number of employees employed by an employer at a particular time for the purposes of this section:</p>
  • <p class="italic">(a) subject to paragraphs (b) and (c), all employees employed by the employer at that time are to be counted; and</p>
  • <p class="italic">(b) seasonal workers and other irregular casual employees are not to be counted.</p>
  • <p class="italic">14 Section 103</p>
  • <p class="italic">Repeal the section, substitute:</p>
  • <p class="italic">103 Employer response to notice of employer determination</p>
  • <p class="italic">(1) If an employer is given a notice under section 102 that an employer determination has been made under subsection 101(1), the employer must, within 14 days after the date of the notice, do one of the following:</p>
  • <p class="italic">(a) give the Secretary a written notice (the <i>acceptance notice</i>) that complies with section 104;</p>
  • <p class="italic">(b) apply for a review of the employer determination under Part 5-1 or 5-2.</p>
  • <p class="italic">Note: This subsection is a civil penalty provision (see section 146).</p>
  • <p class="italic">(2) If an employer is given a notice under section 102 that an employer determination has been made under subsection 101(1A), the employer may, within the period referred to in subsection (3):</p>
  • <p class="italic">(a) give the Secretary a written notice (the <i>acceptance notice</i>) that complies with section 104; or</p>
  • <p class="italic">(b) give the Secretary notice (the <i>non-acceptance notice</i>), orally or in writing, declaring that the employer does not accept the employer's obligations to pay instalments to the person.</p>
  • <p class="italic">(3) For the purposes of subsection (2), the period is 14 days, or such longer period allowed by the Secretary, after the date of the notice given under section 102.</p>
  • <p class="italic">15 Paragraph 106(c)</p>
  • <p class="italic">After "subsection 101(1)", insert "or (1A)".</p>
  • <p class="italic">16 Subsection 108(1) (after table item 1)</p>
  • <p class="italic">Insert:</p>
  • <p class="italic">17 Subsection 108(1) (table item 2, column 1)</p>
  • <p class="italic">Omit "section 103", substitute "subsection 103(1)".</p>
  • <p class="italic">18 Subsection 108(1) (after table item 2)</p>
  • <p class="italic">Insert:</p>
  • <p class="italic">19 Section 146 (cell at table item 10, column 1)</p>
  • <p class="italic">Repeal the cell, substitute:</p>
  • <p class="italic">Subsection 103(1)</p>
  • <p class="italic">20 Paragraphs 157(1)(b) and 159(1)(b)</p>
  • <p class="italic">Omit "section 103", substitute "subsection 103(1)".</p>
  • <p class="italic">21 Subsections 203(2) and 207(1)</p>
  • <p class="italic">Omit "section 101", substitute "subsection 101(1)".</p>
  • <p class="italic">22 Subsection 207(5)</p>
  • <p class="italic">Omit "section 103", substitute "subsection 103(1)".</p>
  • <p class="italic">23 Subsection 207(5) (note)</p>
  • <p class="italic">Omit "Section 103", substitute "Subsection 103(1)".</p>
  • <p class="italic">24 Application of amendments</p>
  • <p class="italic">The amendments made by this Schedule apply in relation to an employer determination that is made on or after the commencement of this Schedule in relation to a claim for parental leave pay that is made before, on or after that commencement.</p>
  • <p>I thank Senator Pocock for raising this really important issue in relation to the administrative burden on small businesses. This pay clerk function of the PPL scheme is something we have long supported so as to remove the unnecessary red tape that's associated with the administration of this really important initiative that has got the bipartisan, or the multipartisan, support of this place. We certainly believe that small businesses and stakeholders and industry groups generally don't support the employer role in the administration of PPL payments because it adds a burden to what is already a very onerous life as a small business operator in this country.</p>
  • <p>I also commend Senator Pocock for allowing the 12-month period to enable a lead-in, which should provide time for Services Australia to be able to arrange the necessary back-of-house processes necessary to implement this change. The coalition want to put on the record that we will always support anything that reduces compliance burden placed on the engine room of our economy, which is small businesses and, accordingly, we will be supporting this amendment and thank Senator Pocock for moving it.</p>
  • <p class="speaker">Don Farrell</p>
  • <p>I thank Senator David Pocock for the constructive discussions that have gone on in the last hour or so, and we will continue those discussions and ensure that the basis of those discussions will be implemented. It is remarkable that Senator Ruston now jumps up to move Senator Pocock's amendments. If this was such an important issue and the opposition were so concerned about small business, why didn't they move these amendments themselves in the first instance? I think that is the $64 question. I think I do have an answer to that. Although Senator Ruston and her colleagues in the coalition talk the talk on small business, they never ever walk the walk. We've only had to see what has happened with the Bellarine Peninsula. What happened to small businesses in the tourism industry during the pandemic? You didn't care an iota.</p>
  • <p>You never cared one iota about those small businesses. Suddenly&#8212;</p>
  • <p class="speaker">Helen Polley</p>
  • <p>Senator Henderson, the senator should be heard in silence.</p>
  • <p class="speaker">Don Farrell</p>
  • <p>Thank you for that protection, Temporary Chair. I make the point that you can't believe the coalition when they say they are remotely interested in helping small business. There's only one party in this country that's going to help small business, and that is the Australian Labor Party. We're the only party that is interested in helping small business&#8212;</p>
  • <p class="speaker">Sarah Henderson</p>
  • <p>The Geelong Manufacturing Council says that you are destroying manufacturing businesses.</p>
  • <p class='motion-notice motion-notice-truncated'>Long debate text truncated.</p>