Coalition pushes Government to take paid parental leave administration burden off SMEs

Opposition small business spokesman Bruce Billson will introduce a private member’s bill seeking to shift responsibility for administering the Government’s paid parental leave scheme from employers to Centrelink’s Family Assistance Office.

Under the current design of the Gillard Government’s paid parental leave scheme, which comes into effect on January 1, 2011, Centrelink will handle PPL payments for the a transitional six month period to allow employers to prepare for the new system.

However, after that employers will be required to handle and process payments from the Government, make payments to employees and ensure records are properly kept.

But Billson wants the Family Assistance Office to retain the job of administering PPL payments after the six month transitional period.

“If it is good enough for Centrelink to administer payments under the scheme for the first six ‘transitional’ months and for the Government to invest taxpayer funds in setting up the necessary systems, it makes perfect sense to continue these arrangements indefinitely,” he says.

Billson says employers will face an added red-tape burden as well as the costs of revising pay systems, receiving and reconciling Government instalments, and passing on payments.

“Small businesses don’t have a pay office or a human resources department. This is just a pointless and needless additional burden.”

“It’s completely bewildering why the Government doesn’t see the worth in this measure.”

Billson has also expressed concerns that the PPL system could add to employers’ payroll tax bills and workers’ compensation premium.

“No State or Territory has taken any action the Government said would expressly exempt paid parental leave payments from the calculation of payroll tax and workers compensation, and the question of additional employer superannuation liabilities has simply been deferred.”

However, Families Minister Jenny Macklin has hit back at these claims, accusing Billson of “scaremongering”.

She says state and territory governments have confirmed PPL will not be subject to payroll tax, and says the Government has designed the scheme such that PPL is “delivered as a workplace entitlement, just like sick leave or any other form of leave”.

“We believe it is important for women to remain connected to their workplace when they take time off to have a baby.”

Billson says he will lodge a notice for the bill next week and hopes it may come before Parliament for debate prior to the end of the year.

Given the power of independent MPs in the new Parliament, Billson’s private members bill may stand a better chance than it would of in the past.

“There have been changing to standing orders that private members bill have the prospect of not only being introduced, but debated and voted on.”

Billson says he has had “some encouraging discussions with some of the independents” and is hopeful the bill might get support in both the House of Representative and the Senate.

Council of Small Business of Australia chief Peter Strong has backed the move.

“If the Government wants to pay someone, pay them. Don’t involve a third party unless it’s absolutely neccessary.”