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Paid Parental Leave Bill 2010

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6111

2008-2009-2010

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

 

Paid Parental Leave Bill 2010

 

 

(1)     Page 2 (after line 10), after Division 1, insert:

Division 1A—Objects of this Act

3A  Objects

                   The objects of this Act are:

                     (a)  to provide a government-funded payment for eligible working parents who take parental leave, whether employed on a full-time, part-time, casual, contractual or self-employed basis; and

                     (b)  to support parents, particularly women, to maintain their connection with the workforce and encourage workforce participation; and

                     (c)  to provide a government scheme that is intended to be additional to any existing entitlements to paid parental leave .

[objects clause]

(2)     Page 2 (after line 10), after Division 1, insert:

Division 1B—Payments under this Act

3B  Payments under this Act

                   To avoid doubt, a payment made under this Act by an employer to a person does not discharge, and must not be taken to discharge, an obligation of that employer to provide paid leave under any other law, or under an industrial instrument, employment contract or other arrangement.

[payments are additional to existing obligations]

(3)     Clause 7, page 19 (lines 23 to 27), omit “18”, substitute “26” (thrice occurring).

[increase entitlement to 26 weeks]

(4)     Clause 11, page 22 (line 30), omit “125 days”, substitute “181 days”.

[increase entitlement to 26 weeks]

(5)     Clause 11, page 22 (line 31), omit “18 weeks”, substitute “26 weeks”.

[increase entitlement to 26 weeks]

(6)     Clause 36, page 44 (line 24), omit “56”, substitute “84”.

[permissible break]

(7)     Clause 36, page 45 (line 7), omit “56”, substitute “84”.

[permissible break]

(8)     Heading to Chapter 3, page 61 (line 1), at the end of the heading, add “ and superannuation ”.

[superannuation]

(9)     Clause 62, page 61 (at the end of line 10), after “(see Part 3-3).”, insert “Instalments are treated as salary or wages for superannuation purposes (see Part 3-6).”.

[superannuation]

(10)   Page 101 (after line 8), at the end of Chapter 3, add:

Part 3-6—Superannuation

115A  Entitlement to superannuation

                   Parental leave pay instalments are to be treated as income, in the nature of salary or wages, and as part of ordinary time earnings for the purposes of superannuation law.

115B  Payments in lieu of superannuation

             (1)  Section 115A does not operate so as to impose taxation.

             (2)  If, under section 115A, a superannuation contribution may not be made to a person in relation to an instalment because of the operation of subsection (1), the Secretary may make a payment to the person in lieu of that superannuation contribution.

115C  Regulations—Superannuation

             (1)  Regulations made for the purposes of this Part may provide for the following matters:

                     (a)  the calculation of amounts of superannuation;

                     (b)  the making of superannuation contributions;

                     (c)  the calculation of amounts to be paid in lieu of superannuation;

                     (d)  the payment of amounts in lieu of superannuation.

             (2)  Without limiting subsection (1), regulations made for the purpose of that subsection may:

                     (a)  modify provisions of this Act or of the superannuation law; or

                     (b)  provide for the application (with or without modifications) of provisions of this Act or of the superannuation law, to matters to which they would otherwise not apply.

115D  Interpretation

                   In this Part:

superannuation law means:

                     (a)  the Superannuation Guarantee (Administration) Act 1992 and instruments made under that Act; and

                     (b)  the Superannuation Industry (Supervision) Act 1993 and instruments made under that Act; and

                     (c)  the Income Tax Assessment Act 1997 , and instruments made under that Act, to the extent that they deal with superannuation.

[superannuation]

(11)   Page 233 (after line 7), after Division 3, insert:

Division 3A—Review of Act

301A  Review of operation of Act

             (1)  The Minister must cause a review of the Act to be conducted by an independent panel.

             (2)  The review must:

                     (a)  start not later than 1 October 2012; and

                     (b)  be completed within 3 months.

             (3)  The review must report on:

                     (a)  the operation of the Act; and

                     (b)  the options for extending the PPL period; and

                     (c)  the options for including concurrent paid partner leave; and

                     (d)  the options for payment of superannuation in connection with PPL; and

                     (e)  the impact of the Act on pre-existing entitlements; and

                      (f)  collective bargaining outcomes as they relate to paid parental leave schemes; and

                     (g)  any other matters considered relevant.

             (4)  The panel must give the Minister must a written report of the review.

             (5)  The Minister must cause a copy of the report to be tabled in each House of the Parliament within 15 sitting days of receiving the report.

[review of Act]

(12)   Page 233 (after line 7), after Division 3, insert:

Division 3B—Data on the impact of PPL

301B  Publication of data on the impact of PPL

             (1)  The Secretary must publish information on the following:

                     (a)  the number of people receiving PPL instalments;

                     (b)  the number of people paid instalments:

                              (i)  by employers; and

                             (ii)  by the Secretary;

                     (c)  PPL periods.

             (2)  The Secretary must routinely consult with Fair Work Australia on bargaining outcomes in enterprise agreements with respect to paid parental leave schemes and publish a report on those consultations, including information about the extent to which enterprise agreements contain additional paid parental leave entitlements and changes to those bargaining outcomes over time.

             (3)  Information required to be published under this section to must be:

                     (a)  updated at least every 6 months, not later than 31 December and 30 June each year; and

                     (b)  published on the department’s website.

[publication of data on the impact of PPL]

(13)   Page 236 (after line 25), after clause 308, insert:

309  Schedule(s)

                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

[amendment of Fair Work Act—entitlement to leave]

(14)   Page 236 (after line 25), at the end of the bill, add:

Schedule 1—Amendments relating to paid parental leave

Fair Work Act 2009

1  Subsection 67(1)

Omit “An”, substitute “Subject to section 67A, an”.

2  Subsection 67(2)

Omit “A”, substitute “Subject to section 67A, a”.

3  After section 67

Insert:

67A  Additional application—paid parental leave

             (1)  This section applies in relation to an employee if:

                     (a)  the Secretary makes a determination under Part 2-2 of the Paid Parental Leave Act 2010 that parental leave pay is payable to the employee for a child; and

                     (b)  at the time the Secretary makes that determination, the employee does not meet the requirements of subsection 67(1) or (2); and

                     (c)  the employee has, or will have, completed at least 3 months of continuous service with the employer immediately before the day the Secretary makes the determination.

             (2)  The employee is entitled to leave under this Division.

Note:          An employee qualifying under this section is entitled to leave during the employee’s PPL period for the child (see section 70A).

             (3)  In this section, unless the contrary intention appears, any term that is defined in the Paid Parental Leave Act 2010 has the meaning given in that Act.

4  Section 70

Omit “An”, substitute, “Subject to section 70A, an”.

5  After section 70

Insert:

70A  Modified application—entitlement to paid parental leave

             (1)  This section applies to an employee who is entitled to leave under this Division because of section 67A.

             (2)  The employee is entitled to:

                     (a)  unpaid parental leave during the employee’s PPL period for the child; and

                     (b)  if the leave is associated with the birth of a child—an additional period of unpaid parental leave of up to 6 weeks before the birth.

             (3)  In this section, unless the contrary intention appears, any term that is defined in the Paid Parental Leave Act 2010 has the meaning given in that Act.

[amendment of Fair Work Act—entitlement to leave]



 

6111—EM

2008-2009-2010

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

Paid Parental Leave Bill 2010

 

Statement pursuant to the order of the Senate of 26 June 2000

Amendments (3), (4) and (5)

The effect of amendments (4) and (5) would be to extend the duration of the entitlement to parental leave pay, resulting in additional amounts being paid. The increased expenditure would be met from the standing appropriation in clause 307 of the bill.

Amendments (4) and (5) are therefore presented as requests.

Amendment (3) is a consequential amendment and is therefore also presented as a request.

Amendments (8), (9) and (10)

Amendment (10) provides that parental leave pay instalments are to be treated as income for superannuation purposes, and that regulations made provide for the calculation and payment of superannuation. For some classes of people - particularly those whose usual superannuation guarantee payments are funded by the Commonwealth - any extra expenditure required to meet those payments would by met from standing appropriations in existing Acts.

The amendment is conditional: it is restricted in operation to ensure that it does not operate to impose taxation. To the extent of that limitation, the amendment provides that the Secretary may make payments in lieu of superannuation. The increased expenditure involved in making these payments would be met from the standing appropriation in clause 307 of the bill.

Amendment (10) is therefore presented as a request.

Amendments (8) and (9) are consequential amendments and are therefore also presented as requests.

 

 

Statement by the Clerk of the Senate

pursuant to the order of the Senate of 26 June 2000

The Senate has long accepted that an amendment should take the form of a request if it would have the effect of increasing expenditure under an appropriation clause in a bill.

On the basis that amendments (4), (5) and (10) would result in increased expenditure under the appropriation in the bill, it is in accordance with the precedents of the Senate that those amendments be moved as requests.

The Senate has also long accepted that an amendment should take the form of a request if it would have the effect of increasing expenditure under a standing appropriation in another Act. To the extent that amendment (10) also operates to have this effect, it is again in accordance with the precedents of the Senate that thee amendment be moved as a request.

It is also in accordance with precedents for the consequential amendments to be moved as requests.