Coalition Cuts Red Tape for Paid Parental Leave

New laws introduced by the Coalition Government is set to cut red tape for business under Paid Parental Leave Scheme.

The Social Services and Other Legislation Amendment Bill 2013 would allow for parental leave pay to be paid directly by Centrelink from March 1, 2014.

Minister for Social Services Kevin Andrews said this change was the step towards the Government’s plans to make Australia’s Paid Parental Leave scheme fairer.

“We know how hard it can be for new parents to manage their budget after the birth of a child,” Andrews said.

“We will deliver a genuine Paid Parental Leave scheme to give mothers six months leave based on their actual wage, rather than being limited to 18 weeks of payment at the national minimum wage.

“This will give new mothers a better choice if they want to combine work with family and continue their career.

“The change will make it easier for employers, who will no longer have to administer the scheme themselves.

“It is an important first step towards a better, fairer Paid Parental Leave scheme that recognises the demands placed on families and employers.”

Employers will still be able to opt in to provide parental leave pay to their employees should both the employer and employee agree to this arrangement.

“The current system requires employers to process parental leave pay after receiving an employee’s entitlement from Centrelink,” Minister for Small Business Bruce Billson said.

“It is unnecessarily complex, and forces small businesses to bear the costs of the extra workload and of restructuring their payroll and accounting systems.”