Only Big Business Pays for Coalitions Family Bonus

Senator Ian Macdonald has today welcomed the Coalitions Paid Parental Leave Policy announcement as a windfall for northern Australian families.

This policy shows how serious the Coalition is about helping families struggling under Labors increases in the cost-of-living.

The Coalition plan provides for 26 weeks of Paid Parental Leave at 100 per cent of the individuals current wage, or at the minimum wage rate, whichever is greater.

The old Labor plan provided 18 weeks only and the maximum rate of pay was minimum wage, said Senator Macdonald.

Senator Macdonald, who is Coalition spokesman for Northern and Remote Australia, has praised the fully-funded policy as a win for both northern families, and for northern businesses.

The scheme will be funded by a 1.5 per cent levy on companies with a taxable income in excess of $5 million. This levy will be offset by the modest company tax cut proposed by the Coalition to take effect from 1 July 2015.

Small businesses throughout the north will enjoy the benefits of the company tax cut, but will be free from the 1.5 per cent levy. They will be able to provide best-practice working conditions for their staff, without having to worry about the impact on their bottom line he said.

The Senator also pointed out the benefits of reduced costs to many of the big businesses who will be paying the levy.

Many of these companies will now be able to discontinue the in-house parental leave schemes they currently operate and fund. So on top of the benefit of the company tax offset, many will be able to find savings when the Coalitions plan takes over.

This is great news for northern families, and great news for northern businesses.

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