ABBOTT’S PPL SCHEME AT RISK OF RORTS AND COST BLOWOUTS

June 12, 2014


Tony Abbott’s extravagant paid parental leave scheme is vulnerable to damaging rorts and cost blowouts. 

Reports in the Guardian today warn that some employers could rort the Prime Minister’s paid parental leave scheme by increasing the income of employees before they are pregnant. 

 

 A senior taxation manager with the National Tax and Accountants Association (NTAA) has warned that some businesses would be able to restructure payments to employees, including family members. 

This raises serious questions about the affordability and integrity of the Prime Minister’s non-means tested scheme. 

We all know Tony Abbott’s $20 billion gold-plated paid parental leave scheme will be a burden on the budget. 

Now we see reports that tax experts are preparing to advise businesses how to rort the scheme, blowing the cost out even further and forcing taxpayers to foot the bill. 

The Deputy Prime Minister, Warren Truss yesterday indicated women who do not work might receive income from Tony Abbott’s paid parental leave scheme, adding yet further risk of a cost blowout. 

Members of the National Party know the scheme is fundamentally unfair and unaffordable. 

That’s why National Senators, John Williams, Ron Boswell and Barry O’Sullivan are prepared to cross the floor to vote against the scheme. 

Tony Abbott must scrap his paid parental leave scheme and accept that the existing scheme established by Labor has widespread support, including from the business community. 

THURSDAY, 12 JUNE 2014 

MEDIA CONTACT: ALISTAIR WEBSTER 0413 779 348 

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