Coalition wants Centrelink to distribute parental leave payments, calls on support from independent MPs

The Coalition is calling on independent MPs to support its push for paid parental leave to be distributed by Centrelink on behalf of business.

It is proposing to amend the law so that an employer and employee need to consent for the employer to make the payments, otherwise the Family Assistance Office will make the payments on behalf of the business.

Shadow Small Business Minister Bruce Billson says before the Government “outsources its role in handling payments, they need to get the consent of employer and employee”.

Billson says the amendments will allow for well-equipped businesses and those that have already incurred the cost of adopting their payroll systems to continue with their current practice, but relieve reluctant businesses of their current responsibility.

When paid parental leave was first introduced in January, it was administered by the Family Assistance Office. Six months later, responsibility for administering the payments was transferred to business.

Billson launched a private member’s bill about a year ago for the FAO to continue administering the payments after the June 30 deadline, but it was rejected by one vote.

Now, Billson says the FAO push is Coalition policy, and he is calling on cross-benchers Tony Windsor, Rob Oakeshott and Andrew Wilkie to support the move.

“I’ve re-engaged with them,” Billson says. “The independents that didn’t support the bill last time did attract stern criticism from small business,” Billson notes.

“I’m hopeful they’ve reconsidered their position and might be supportive.”

Comment was sought from the offices of Tony Windsor and Rob Oakeshott this morning.

Billson says the amendments had been scheduled for debate today, but the resignation of Speaker Harry Jenkins means it might be deferred until next year.

Billson says the feedback since business assumed the responsibility for administering paid parental leave in July has been mixed: big organisations are largely nonplussed, but small business sees it as yet another “red tape and compliance burden”.

Billson says in addition to supporting the Government’s fine-tuning of the payment, there needs to be one change: “to try and protect particularly small business from this pay clerk paid parental leave burden”.