Fairer Paid Parental Leave Bill 2016 - Commentary on Ministerial Responses [2017] AUSStaCSBSD 51 (15 February 2017)

• Chapter 2
• Commentary on ministerial responses
• Fairer Paid Parental Leave Bill 2016
• Trespass on personal rights and liberties—retrospective effect1

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Chapter 2

Commentary on ministerial responses

2.1 This chapter considers the responses of ministers to matters previously raised by the committee.

2.2 Correspondence relating to these matters is included at Appendix 1.

Fairer Paid Parental Leave Bill 2016

Purpose	This bill seeks to amend the Paid Parental Leave Act 2010 to introduce revised arrangements for paid parental leave
Portfolio	Social Services
Introduced	House of Representatives on 20 October 2016
Bill status	Before House of Representatives
Scrutiny principle	Standing Order 24(1)(a)

2.3 The committee dealt with this bill in Alert Digest No. 8 of 2016. The Minister responded to the committee's comments in a letter dated 14 February 2017. Set out below are extracts from the committee's initial scrutiny of the bill and the Minister's response followed by the committee's comments on the response. A copy of the letter is at Appendix 2.

Trespass on personal rights and liberties—retrospective effect^[1]

Initial scrutiny – extract

2.4 Clause 2 of the bill sets out when the provisions of the bill are to commence. It states that Schedule 1, which seeks to amend the paid parental leave scheme, will commence on the first 1 January, 1 April, 1 July or 1 October to occur after the day the Act receives Royal Assent.

2.5 Depending on what date the bill may pass the Parliament, this could mean that the changes to the paid parental leave scheme could commence in a matter of weeks after the Act becomes law.

2.6 The paid parental leave scheme gives parents access to 18 weeks of government-funded parental leave pay following the birth of, or adoption of, their child. The amendments proposed in this bill would mean, for some prospective parents, the 18 weeks parental leave pay would not be available after the relevant provisions commence. This could apply to women who are already pregnant and who have made decisions regarding the amount of leave to take from their workplace and childcare arrangements on the basis of the existing paid parental leave scheme.

2.7 Although it may be considered that the commencement of the provision is not, technically speaking, retrospective, there may be a question of fairness as to whether those who are pregnant should have their entitlement to parental leave pay removed after they have already made decisions regarding work and care based on the existing entitlements. Neither the explanatory memorandum nor the statement of compatibility addresses this issue. The committee therefore seeks the Minister’s advice as to the justification for this approach.

Minister's response

2.8 The Minister advised:

With regard to the Fairer Paid Parental Leave Bill 2016, the Committee expressed concerns about the proposed period of time before the measures commence. I am aware of the concern of families in relation to this measure.
The Committee will be aware that the Government introduced a new Bill into Parliament on 8 February 2017, the Social Services Legislation Amendment (Omnibus Savings and Child Care Reform) Bill 2017, which includes among other measures, the Paid Parental Leave (PPL) changes previously introduced in the Fairer Paid Parental Leave Bill 2016.
The PPL measures in the new Bill before Parliament also include changes that address concerns expressed about the 2015-16 Mid-Year Economic and Fiscal Outlook measure. The measure will now commence on the first 1 January, 1 April, 1 July or 1 October that is 9 months after the legislation receives Royal Assent, with an earliest commencement date of 1 January 2018. This will ensure prospective parents have time to plan their finances and structure their leave arrangements before their newborn or adopted child arrives.
In this Bill, the Government will also be increasing the maximum number of weeks of Government-provided Parental Leave Pay from 18 to 20 weeks. This means that the taxpayer funded scheme will now be better targeted to those who do not receive any employer-provided paid parental leave, or whose employer-provided paid parental leave is for less than 20 weeks.
The taxpayer-funded Parental Leave Pay for women without access to any employer paid parental leave will increase from 18 weeks to 20 weeks at the National Minimum Wage, an increase of around $1,300.
Under the revised measure, all eligible parents will be guaranteed a safety net of financial support equivalent to 20 weeks of Parental Leave Pay at the rate of the National Minimum Wage. Those eligible parents with access to an employer scheme of less than 20 weeks paid parental leave will receive a mix of employer and taxpayer-funded paid parental leave, up to 20 weeks in total. Only those with a generous employer entitlement of 20 weeks or more will lose access to the taxpayer funded scheme (around 2 per cent of mothers).

Committee comment

2.9 The committee thanks the Minister for this response. The committee notes the Minister's advice that the recently introduced Social Services Legislation Amendment (Omnibus Savings and Child Care Reform) Bill 2017 (Omnibus bill) includes, among other measures, the Paid Parental Leave changes previously introduced in this bill. The committee notes the Minister's advice that the measures in the Omnibus bill will now commence on the first 1 January, 1 April, 1 July or 1 October that is nine months after the legislation receives Royal Assent, and this 'will ensure prospective parents have time to plan their finances and structure their leave arrangements before their newborn or adopted child arrives'.

2.10 The committee considers its scrutiny concerns regarding the potential retrospective effect of the provisions have been addressed in the Omnibus bill. In light of the Minister's advice that the provisions of this bill have now been incorporated in the Omnibus bill, the committee makes no further comment on this matter.

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[1] Clause 2, commencement.