The proposed PPL scheme will require employers to be responsible for making PPL payments where the employee has completed 12 months continuous service prior to the date of birth of the child. The policy objective for involving the employer is to strengthen the connection of employees to their employer and the workforce.

NIA chief executive officer Andrew Conway said that while the NIA is supportive of this policy aim, the involvement of small business in the payment process creates an unnecessary administrative burden that does not justify the stated purpose.

"Given that the Family Assistance Office establishes eligibility for the government funded PPL payments, it seems ironic that when we are trying to lessen the burden on small business, we propose a system which intends to increase the level of complexity that already exists," Mr Conway said.

"If a small business wants to reinforce the bond with its employees, it should be given the

choice to opt into the payment cycle rather than design a system which makes it compulsory," Mr Conway said.

The Australian Government is introducing the PPL scheme from January 1, 2011.The PPL is a government funded payment to support a parent to stay at home to care for their baby fulltime during the vital early months. Eligible parents will receive taxable PPL payments at the level of the federal minimum wage, currently $543.78 a week, for a maximum period of 18 weeks.

To be eligible for the PPL scheme, a person (usually the mother) must be in paid work and have:

· been engaged in work continuously for at least 10 of the 13 months prior to the

expected birth or adoption of the child; and

· undertaken at least 330 hours of paid work in the 10 month period (an average of 7.6

hours per week).

The scheme will cover employees, including casual employees, the self-employed and

contractors. An income test of $150,000 will apply based on the person's adjusted taxable

income in the previous financial year.

http://www.nia.org.au/