Bruce Billson (Dunkley, Liberal Party, Minister for Small Business) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This bill will implement the government's commitment, foreshadowed during the 2013 election campaign, to reduce the red tape burden and compliance costs on business by ensuring that they are not required to be the paymaster for the government's paid parental leave scheme.

To ease this burden, the paid parental leave legislation will be amended to remove the mandatory requirement for employers to administer government-funded parental leave pay to their eligible long-term employees.

From 1 July 2014, 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 for their employer to pay them.

Importantly, this measure will generate a significant compliance cost saving for Australian businesses, especially small businesses. Small businesses are particularly impacted by regulations, as they often do not have the resources or specialised staff to deal with compliance requirements.

It is estimated that the average annual reduction in compliance costs on business will be $44 million, strongly delivering on the government's commitment to reduce red tape on businesses.

This measure put forward by the government 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.

I commend the bill to the House.

Debate adjourned.