5 March 2014

Labor blocks Government’s attempt to save business from $44 million red-tape burden

Note

This media release discusses Labor blocking the Government’s attempt to save business from $44 million red-tape burden.

Labor proved today they just don't get business and have no understanding of how unnecessary costs adversely impact on jobs and business viability.

Instead of supporting the Government to remove the 'pay-clerk' burden from the paid parental leave scheme they moved to increase costs to business by $37.3 million, compared to the Government's plan.

The Government wanted to relieve all businesses of this compulsory red-tape burden but Labor blocked this move for a third time and sought to limit it to businesses that employ less than 20 people without explaining how this cut-off would be calculated.

This is unacceptable to the Government which is why we will attempt to see this measure fully implemented as per our election commitment on Repeal Day so that all businesses can benefit.
Because of Labor's procedural games the Government won't proceed with 'pay-clerk' changes in the Social Services and Other Legislation Amendment Bill 2013.

This effectively means Labor has voted down this $44 million red-tape reduction measure three times, having twice done so under the Rudd-Gillard-Rudd Government, which has again denied the full benefits of business cost relief today.

The Australian Chamber of Commerce and Industry conducted a survey of its members on the Paid Parental Leave scheme in May 2013.

In the survey, 84.3 per cent of businesses either agreed or strongly agreed that "the Government should not require employers to be the paymaster for the Paid Parental Leave scheme".

The evidence is clear from business that Labor has got the wrong end of the stick on this trying to limit this red-tape reduction measure in this way.

Under the Government's plan businesses of all sizes would be relieved of the red-tape burden of acting as the 'pay-clerk' for the paid parental leave scheme unless the employer and employee both 'opt in' to having the employer administer payments.