An extension to government paid parental leave to 26 weeks is set to become law after crossbench senators David Pocock and Jacqui Lambie struck a $10 million deal with the Albanese government to get extra support for small businesses.
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The Paid Parental Leave Amendment (More Support for Working Families) Bill 2023, which increases the scheme from 20 weeks to 26 weeks by July 2026 and introduces concurrent leave for both parents to take the leave at the same time, is expected to pass the Senate on Monday.
Labor expects 180,000 families will benefit and it regards business is an essential partner in delivering paid parental leave.
With many small businesses often without human resources or finance staff, the senators have secured $10 million from the government over four years to help small businesses adversely impacted by the commonwealth payment.
"Government paid parental leave is a critically valuable entitlement, particularly for increasing women's workforce participation and closing the gender pay and super gaps," Senator Pocock said in a statement.
"The burden of administering this important government payment is felt disproportionately by small business people, many of whom are women."
The ACT and Tasmanian senators will also cosponsor, with UAP senator Ralph Babet but without government support, amendments proposing either an opt-in or opt-out model for small business or compensation for the scheme's red tape.
"Small businesses already have too much red tape, these amendments give Australian small business a choice," Senator Lambie said.
"Once again, the crossbench can demonstrate to the Australian people that independents and micro parties come up with solutions that work."
The Greens are also planning to move amendments relating to the payment of super on the government payment even though the government has now pledged in a pre-budget move to legislate a 12 per cent super equivalent payment to a superannuation fund on behalf of parents receiving the payment.
While generally supportive of plans to expand the scheme, the Greens would like the super plans expedited and would like the employer component of superannuation also paid.
Senators Pocock and Lambie have also argued that Labor's plans for PPL should go further and held a Senate inquiry to find the impact on small businesses and their employees. They want Services Australia to directly administer the payments except in cases where the small business wants to do it.
It is understood they have been invited by Social Services Minister Amanda Rishworth to work on a co-design of improvements to assist small businesses. The Canberra Times sought comment from Ms Rishworth.
"We need to be making it easier, not harder, to run a small business in Australia," Senator Pocock said. "I can't see any downside for small businesses being free to choose whether or not to administer a scheme the government can administer itself, and already does in over a third of cases currently."