Coalition calls on Mark Arbib to support push to take parental leave pay responsibilities off SMEs

The Coalition will introduce amendments to the paid parental leave scheme this week that would require Centrelink’s Family Assistance Office to distribute payments to parents, stripping small business of the responsibility to do so.

Shadow Small Business Minister Bruce Billson says he is discussing the amendments with crossbencher MPs, but says Labor’s new Small Business Minister Mark Arbib should prove his commitment to reducing red tape for small- and medium-sized businesses by supporting his push.

“I’ve been liaising with crossbenchers and they’ve been prepared to give me a hearing,” Billson says.

Billson says the bill is designed to give choice to SMEs; those that already have their systems in place can continue making the payments, so long as both employer and recipient agree.

“But for employers without the resources or inclination to be the unpaid paid clerks for the Government, they won’t be required to do so.”

Billson says the time and effort taken to distribute the payments would be better spent running businesses.

The amendments follow an unsuccessful attempt by Billson to have Centrelink continue its role in distributing the payments. (Small business took over distributing the payments from July 2011.)

He lost that push by one vote and is now calling on SMEs to make their voices heard on the issue.

“I’m encouraging small business to point out to the crossbenchers how important this is.”

Billson adds that given Arbib has highlighted red tape as a prime concern among SMEs, he should embrace this opportunity to reduce their burden.

But the Government says it will not support the amendment. Arbib said today that Billson should “focus his attention on standing up for small business within his own party by convincing his colleagues to dump their new tax on business under Tony Abbott’s parental leave scheme.”

The Coalition’s paid parental leave is much more generous than Labor’s, offering 26 weeks’ paid parental at full replacement wage up to a maximum annual salary of $150,000. It would be distributed by the Family Assistance Office and funded by a tax on big business.

“The Coalition’s plans to slug business with a new 1.5% tax to pay for its PPL Scheme has been slammed by the business community as double taxation that will push up prices and cost jobs,” Arbib said.

Questioned last month on the prospect of removing small business from the responsibility of distributing the scheme, Arbib said a large number of Australian families have taken advantage of the scheme and it hadn’t been raised as an issue during his discussions with small business people.

“That’s not to say it’s not a concern, but it’s not something that’s been raised with me. I’ll keep talking with small business people about those sorts of issues but there’s plans to make changes there,” he said.