Southern State Superannuation (Parental Leave) Amendment Bill

Introduction and First Reading

The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Justice Reform, Minister for Planning, Minister for Industrial Relations, Minister for Child Protection Reform, Minister for the Public Sector, Minister for Consumer and Business Services, Minister for the City of Adelaide) (16:38): Obtained leave and introduced a bill for an act to amend the Southern State Superannuation Act 2009. Read a first time.

Second Reading

The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Justice Reform, Minister for Planning, Minister for Industrial Relations, Minister for Child Protection Reform, Minister for the Public Sector, Minister for Consumer and Business Services, Minister for the City of Adelaide) (16:38): I move:

That this bill be now read a second time.

This bill seeks to amend the Southern State Superannuation Act 2009, which contains the government's Triple S superannuation scheme for public sector workers. The main proposal dealt with in the bill seeks an amendment to the definition of 'salary' to ensure that the requirement to pay superannuation on parental leave payments is reinstated. I seek leave insert the remainder of the second reading explanation in Hansard without my reading it.

Leave granted.

Up until November 2012, superannuation had been payable to members of Triple S on parental leave payments. However, the Statutes Amendment and Repeal (Superannuation) Bill 2012 amended the definition of 'salary' under the Southern State Superannuation Act 2009 to bring the definition of remuneration on which employer superannuation contributions are payable into conformity with the requirements of the Commonwealth's Superannuation Guarantee (Administration) Act 1992, and in doing so made it clear that payments in respect of parental leave are not a component of 'salary' that would attract an employer superannuation contribution. Notwithstanding the legislative provisions, payment of superannuation on parental leave is not prohibited. An employer may elect to make payments or additional payments over and above any prescribed minimum.

Concerns have recently been expressed by public sector groups over parental leave payments not attracting superannuation on the basis that the public sector is the employer of choice for women and that women in employment must not be disadvantaged in terms of their superannuation entitlements. In addition, the WPEA: Salaried 2014 provides a commitment that existing conditions of employment will not be reduced, as did the South Australian Government Wages Parity (Salaried) Enterprise Agreement 2009 which was in operation at the time of the legislative amendment. It is also apparent that other interstate jurisdictions continue to pay superannuation on paid maternity and adoption leave, irrespective of federal legislation. This includes Queensland, Tasmania and Western Australia.

The Bill therefore seeks to amend section 3(1) of the Southern State Superannuation Act 2009, so as to rescind section 3(1)(ba) to reinstate the payment of superannuation on parental leave. It is proposed that this amendment will operate with retrospective effect from 19 November 2012. This is considered appropriate given the nature of the payment and the potential industrial and social implications canvassed above. There is also no budget impact as a result of the proposal to make the amendment retrospective, as no reductions were ever made to agency budgets in 2012 when the original legislative change was made.

I commend the Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

This clause is formal.

2—Commencement

This clause provides for the measure to be taken to have commenced immediately after paragraph (ba) of the definition of salary was inserted by the Statutes Amendment and Repeal (Superannuation) Act 2012.

3—Amendment provisions

This clause is formal.

Part 2—Amendment of Southern State Superannuation Act 2009

4—Amendment of section 3—Interpretation

This clause proposes the deletion of paragraph (ba) from the definition of salary. As a consequence of this amendment, parental leave will be a component of salary for the purposes of the Act.

5—Amendment of Schedule 1—Transitional provisions

This clause proposes the deletion of a transitional provision that was inserted when the definition of salary was amended to exclude parental leave.

Debate adjourned on motion of Ms Chapman.