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representatives vote 2024-09-12#1

Edited by mackay staff

on 2024-09-28 17:06:17

Title

  • Bills — Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024; Second Reading
  • Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 - Second Reading - Coalition policies

Description

  • <p class="speaker">Anthony Albanese</p>
  • <p>The Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 brings together two great Labor economic reforms: universal superannuation and paid parental leave. It brings together the two things that drive our government: delivering for people here and now, and building for the future. This is about a modern economy that works for modern families, and it represents another vital step forward in our government's commitment to economic equality for the women of Australia.</p>
  • The majority voted against an [amendment](https://www.aph.gov.au/Senators_and_Members/Parliamentarian?MPID=242515) to the usual second reading motion, which is "that the bill be read a second time" (parliamentary jargon for agreeing with the main idea of the bill). The amendment was introduced by Deakin MP [Michael Sukkar](https://theyvoteforyou.org.au/people/representatives/deakin/michael_sukkar) (Liberal).
  • ### Amendment text
  • > *That all words after "That" be omitted with a view to substituting the following words: "whilst not declining to give the bill a second reading, the House:*
  • >
  • > *(1) notes:*
  • >
  • >> *(a) the Coalition's strong record supporting government funded paid parental leave in Australia;*
  • >>
  • >> *(b) at the 2010 and 2013 federal elections, the Coalition's paid parental leave policy sought to deliver 26 weeks' paid parental leave based on actual wage and included superannuation; and*
  • >>
  • >> *(c) both Labor and the Greens opposed the Coalition's paid parental leave policy; and*
  • >
  • > *(2) calls on the Government to amend the Paid Parental Leave Act to provide choice to Australian families by giving eligible PPL recipients the option of:*
  • >
  • >> *(a) receiving superannuation on the government funded paid parental leave payment; or*
  • >>
  • >> *(b) receiving 26 weeks of paid parental leave from 1 July 2025, increasing to 28 weeks from 1 July 2026; or*
  • >>
  • >> *(c) receiving a one-off payment equal to the value of the superannuation amount to help with costs associated with the arrival of a newborn or adopted child".*
  • <p>We reflected on this commitment in the caucus room of the Labor party on Monday evening. We came together to celebrate 30 years since delegates to the 1994 Australian Labor Party National Conference took the decision to adopt affirmative action with the aim of equal representation. I spoke in that debate as a rank-and-file delegate, one of the 99 who made that decision that has made a difference to our party and, therefore, made a difference to the nation. Ten years after the great Susan Ryan gave Australia the Sex Discrimination Act, Labor took the crucial step of adopting quotas for women to be preselected in winnable seats, and every day that we come into this place we can see the wonderful, history-making consequence: Australia's first ever government made up of a majority of female members. When we look across to the other side of the chamber, we see the consequences of not supporting women to enter parliament in safe seats.</p>
  • <p>Australia's first ever female majority government keeps delivering result after result. It is absolutely true that men can make decisions that benefit women as well as that women can make decisions that benefit women, but, when you have a caucus room, a cabinet and a ministry made up of equal representation, you ensure that it is never an afterthought. Gender equity in this country is front and centre. I want to see a parliament that looks like Australia and looks like the Australian people, not just in gender terms but in faith, in ethnicity and in background. That is what my government is moving towards, more and more.</p>
  • <p>It makes a difference. The number of women in the workforce is at a record high. The gender pay gap has been reduced to 11.5 per cent, reduced by almost three per cent in just two years. We have established 10 days paid family and domestic violence leave because no woman should ever have to choose between her financial security and her physical and mental safety. We are lifting wages in aged care and child care, two workforces which are dominated by women. Later today, the Minister for Education will introduce into this chamber the legislation for the 15 per cent increase in the pay of early educators, an important step forward. Those people&#8212;by and large feminised work forces that look after our youngest Australians and our oldest Australians in aged care&#8212;will get not just our thanks but also the wages that they deserve, in order to show them respect and in order to make sure that those important services can attract the workers and the skilled workers that they need.</p>
  • <p>We reformed the tax cuts that we inherited and made them fairer for working women. Under Labor's tax cuts, every female taxpayer got a tax cut, and nine out of 10 got a bigger tax cut because we still have that wage differential. Lower income people who will benefit from that decrease from 19 cents down to 16 cents in that first marginal tax rate&#8212;rather than the $4,500 reduction in the tax cuts that people in this parliament and other high-income earners will receive&#8212;will tend to spend more; they have a higher propensity to consume and spend it rather than save it. When we sat in cabinet, we got that analysis from the Treasury. The reason that isn't inflationary is that it will encourage more women into the workforce. It will encourage more workforce participation through working an extra day or two or re-entering the workforce earlier after having a child or after an absence from the workforce for some other reason. This is critical reform, just as cheaper child care for 1.2 million families that we have delivered is important, providing cost-of-living relief, investment in early education and economic reform that delivers for women. Making child care cheaper makes it easier for parents to return to work sooner. Doing so, of course, boosts productivity and participation.</p>
  • <p>Last Friday, I announced the next step in our work to address the national challenge of family and domestic violence, a package that includes an investment of $3.9 billion in a new national access to justice partnership, the biggest single Commonwealth investment in legal assistance ever since Federation. In our first budget, we delivered the biggest expansion in paid parental leave since the previous Labor government created it. There's a pattern here. The big reforms&#8212;the big changes that take Australia forward&#8212;are done by the Australian Labor Party.</p>
  • <p>In our first budget we delivered that expansion from 20 weeks to 26 weeks, a full six months. We are making paid parental leave more flexible as well, so parents can share the caring responsibilities and share the experience. Through this legislation being debated here this morning, we are adding superannuation to paid parental leave. This is what happens when women have a seat at the table and seats in the parliament. This is the progress our nation can achieve. This is how Australia can draw on the potential of all of our citizens, not just some. This is how we continue to build an economy that works for people, not the other way around.</p>
  • <p>The first months of your child's life are so special&#8212;exhausting at times, but uplifting. Every day brings new challenges and new joys. You can't put a price on spending that precious time with your new bub, and you shouldn't pay a price for it, either. No mother should be penalised for taking time away from work to do the most important job there is. That is the principle behind paid parental leave and that is the principle behind adding superannuation to it.</p>
  • <p>This will help narrow the gender gap in retirement savings. We know that, at the moment, that gender gap is around about 25 per cent. We also know that that has an impact on the rising rates of homelessness we've seen in older women. The sector that has seen the biggest growth in homelessness in this country over the most recent period, the last decade, is older women. The relationship between lower retirement savings and that is direct and is clear. This will deliver greater economic security for around 180,000 families this year by adding the extension of paid parental leave. Superannuation being paid will make an enormous difference.</p>
  • <p>When we announced this change back in April, I, together the member for Richmond, met some new mums and their children in Ballina. It was a terrific day. It was with The Parenthood as well, led by the remarkable Georgie Dent. They spoke to me directly about what it meant. Caitlin said:</p>
  • <p class="italic">It's so important that super will be paid as part of the paid parental leave. A lot of women get to retirement age, and they don't the same amount of funds as men do, and it's so important for their financial security.</p>
  • <p>Ebony said:</p>
  • <p class="italic">Having the super there shows that we value the role of mothers in society and acknowledge what they do is worth paying for.</p>
  • <p>I can't put it better than that. This legislation affirms our government's respect for the women of Australia, and it's a renewal of our commitment to economic equality.</p>
  • <p>I would have thought this was legislation that should have just sailed through the parliament&#8212;legislation that those opposite would looked at, thought about and said: 'Yes. The time has come.' But, of course, that's not the case. They still don't get superannuation and the important role that it plays in economic security. They never see an issue for which superannuation shouldn't be raided. We now hear that it should be raided for home purchases. We have had proposals that women who are the victims of domestic violence should raid their superannuation as well. Now, with this issue, we don't have them saying, 'Yes, it's a good idea that people have higher retirement incomes and that we close that 25 per cent gap in equality.' They have a range of options, but none of them are about superannuation and none of them are about higher retirement incomes for working women. They just don't get it. So ideological is their opposition to the concept of universal superannuation that they've never seen any reason why it shouldn't be raided over and over again.</p>
  • <p>They apparently have a range of proposals and alternatives here&#8212;lump sum payments, extensions of terms and a range of things&#8212;all of which would destroy the very reason why this legislation is coming forward. They should go and talk to working women about why this is an important initiative. This is something that has come from women in the business community. This is something that has come from women in the union movement. This is something that has come from women in civil society and from equity advocates, but those opposite are going to, once again, try and undermine it.</p>
  • <p>This is the writing of another chapter in the Labor story of fair pay, better conditions of work and dignity and security in retirement, and I'm very proud to join my colleagues in commending this bill to the House.</p>
  • <p class="speaker">Amanda Rishworth</p>
  • <p>I'd like to thank all of those who have contributed to this important debate on the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024. This bill is the third significant improvement the Albanese government has made to paid parental leave. Paying superannuation on paid parental leave is an important step to reducing the gender gap in retirement savings and supporting a dignified retirement for more Australians.</p>
  • <p>The government has listened to calls from the union movement, the women's movement, economists and employers. We know that women make up the majority of primary caregivers in this country. We know that women with children face an average 55 per cent drop in earnings in the first five years of parenthood. We know that the effect of lower income compounds over time, increasing the gap between men's and women's superannuation balances at retirement. The data is clear: women retire with around 25 per cent less super than men.</p>
  • <p>What we are doing with this bill is a making a positive investment into the future of working women. For babies born or adopted from 1 July 2025, this bill delivers all eligible parents an additional 12 per cent of their paid parental leave as a contribution directly to their super fund. This super contribution will match the superannuation guarantee rate and will include an additional interest component. It will rise with any future increases to the legislated superannuation guarantee. Around 180,000 families will benefit from the changes each year. Once the paid parental leave scheme reaches 26 weeks in 2026, based on the superannuation guarantee rate of 12 per cent, the maximum amount a family will receive in superannuation contributions is around $3,150.</p>
  • <p>This bill has been warmly welcomed by parents, employers, unions and economists. It has been praised as an important step to narrow the gender pay gap and boost women's financial security, and it builds on the government's broader efforts to strengthen the superannuation system, including legislating the objective of superannuation, making superannuation concessions fairer and more sustainable and criminalising superannuation theft.</p>
  • <p>I note the second reading amendment moved by the member for Deakin and wish to state clearly from the outset that the government will be opposing this. This is an underhanded move by an opposition that has spent decades trying to undermine superannuation. Their amendment mentions their old, rolled-gold paid parental leave, but it fails to mention that, when they actually had the power and were in government, they axed this idea and then turned to calling mothers 'double-dippers' and 'rorters' and tried to take away their paid parental leave entitlement instead.</p>
  • <p>What they are proposing now is to encourage parents to cash out paid parental leave superannuation contributions, rather than contribute to their retirement savings, wilfully missing the intent of this bill, which is about closing the gender pay gap in retirement savings and ensuring that the government's paid parental leave is treated like any other workplace entitlement that attracts superannuation. Women deserve to retire with the same financial security as men. Under both alternative options proposed by the coalition, parents are going to be disadvantaged at retirement, thousands of dollars worse off.</p>
  • <p>But there's also an equity issue, on the point of women being paid, that the coalition have missed in their proposal. Their option for a parent to take an additional two weeks of paid parental leave equates to about $1,830. In comparison, as I've stated, the maximum paid parental leave superannuation contribution will be over $3,000, and obviously this will increase over time. I don't think it was their intention, and I'm going to give them the benefit of the doubt, but, however you look at this, their proposal is a dud for women.</p>
  • <p>Thanks to Labor's significant investment in paid parental leave, families are already receiving extra support at the time of the birth of their newborn baby, with greater flexibility, a higher income test and more weeks of paid leave. Our reforms have made the scheme stronger and more suitable for the needs of modern families, and through this bill we are not only ensuring families receive extra support at the time of a birth but also boosting their retirement incomes as well. I commend the bill to the House.</p>
  • <p class="speaker">Milton Dick</p>
  • <p>The question before the House is the amendment moved by the honourable member for Deakin be agreed to.</p>
  • <p></p>
  • <p></p>