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Statement from Innes Willox, Chief Executive of the national employer association, Australian Industry Group. The Bill would vary the legislation that regulates the operation of the coal mining industry long service leave scheme (LSL Scheme). Employers covered by the LSL Scheme are required to pay a levy of 2.7% on the eligible wages of employees covered by the scheme. When passed by Parliament, the Bill will provide a voluntary mechanism for employers with historical levy liabilities to obtain some relief from historical levy debts. The relief includes a timeframe over which historical levy debts can be paid, the waiving of an additional levy (which operates like penalty interest), and the waiver of a portion of the historical debt once the majority of the debt has been paid. Many employers that provide services to coal mining companies have been unexpectedly faced with very significant historical levy debts due to the notorious uncertainty that has existed regarding the coverage of the LSL Scheme, particularly businesses that provide maintenance services on coal mining sites. There is now more clarity about the coverage of the LSL Scheme due to a December 2024 judgment of the Full Court of the Federal Court of Australia in a case relating to Hitachi Construction Machinery (Australia) Pty Ltd. Many businesses were facing hardship and potential insolvency, if required to pay the historical levy debts straight away. A large number of jobs were at risk. Therefore, the introduction of the Bill into Parliament is very welcome. We recognise that the Bill needed to strike a balance between the interests of all parties. This balance was achieved following the Government's lengthy consultation process, in which Australian Industry Group was heavily involved. We thank the Employment and Workplace Relations Minister Amanda Rishworth and her predecessors Murray Watt and Tony Burke for their attention to this issue which has significant financial implications for many businesses. We urge all political parties and independents to support the Bill. |
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