Payroll Tax Rebate Scheme (Disability Employment)

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Payroll Tax Rebate Scheme (Disability Employment) Bill 2011 (Proof)
About this Item
Speakers - Perry Mrs Barbara; Baird Mr Mike; Keneally Ms Kristina; Notley-Smith Mr Bruce; Torbay Mr Richard; Rowell Mr Jai; Mihailuk Ms Tania; Owen Mr Tim; Issa Mr Tony; Toole Mr Paul; Brookes Mr Glenn; Constance Mr Andrew
Business - Bill, Message, Agreement in Principle, Passing of the Bill, Motion

PAYROLL TAX REBATE SCHEME (DISABILITY EMPLOYMENT) BILL 2011
Page: 65
Agreement in Principle

Debate resumed from an earlier hour.

Mrs BARBARA PERRY (Auburn) [4.36 p.m.]: The Payroll Tax Rebate Scheme (Disability Employment) Bill 2011 is part of the Stronger Together package of reforms begun in 2006, which heralded a new direction for disability services in New South Wales. Around 4.5 million Australians, or about one-fifth of the population, have a disability. Of these, 760,000 people under 65 years have a severe disability. Given that it is Carers Week, it is important to note that half a million Australians are the primary carers of a person with a disability.

Stronger Together is a 10-year plan that was born out of intensive stakeholder consultation. It is an overarching plan for the sector that seeks to tackle a number of areas, including increasing social inclusion for people with a disability, increasing capacity for the sector, moving towards an individualised funding model, and delivering new supported accommodation and respite places, amongst others. The Stronger Together 10-year plan is the largest funding increase for disability services in New South Wales history and the package comprises the most significant investment made. By the final year of Stronger Together $5.5 billion will have been invested in disability services.

This bill is part of the second phase of Stronger Together announced by the former Government and the former Premier Kristina Keneally on the International Day of Persons with Disability on 3 December 2010. It is an important part of the package and it recognises that we have a long way to go in employment for people with a disability. In some areas we have been going backwards. For example, in 1999 the proportion of people with a disability in the Australian Public Service was 4.9 per cent. This figure dropped to 3 per cent in 2009. I ask members to compare this with the figure of 6.8 per cent in 1986. All these figures are too low. The 2009 Australian Bureau of Statistics figures show that people with disabilities had a 53.4 per cent participation rate in the labour force. The figure for those without a disability was 81.5 per cent.

The sobering reality is that, while our country has been going through a period of sustained growth, people with a disability have not shared in the benefits of this growth. Australia has not faced a serious recession in 20 years but those with a disability have effectively been locked out from sharing in the benefits of this growth, especially in employment participation. This bill seeks to go towards righting those wrongs and increasing employment opportunities for those with a disability. It seeks to close the gap in unemployment between people with a disability and the rest of the community.

This payroll exemption scheme, effective from June 2011, will enable employers to claim a rebate for workers with moderate to high needs. It will provide a $4,000 payroll tax rebate to those who employ new employees with a disability from 1 January 2012, with the rebate to be made in two instalments: $2,000 after three months employment and $2,000 after six months employment. It provides payroll tax exemptions for employers who employ a person with a disability who has been part of the Transition to Work program from 1 January 2011. The bill seeks to uphold Stronger Together's aim of enabling 60 per cent of Transition to Work participants to move into employment or further education by 1 July 2014 and 65 per cent of Transition to Work participants to move into employment or further education by 1 July 2019. Those are the stated aims of Stronger Together.

This bill will move us somewhat towards achieving those aims. I am very pleased that the Stronger Together II package has received bipartisan support from its inception. I thank the Minister for Disability Services, who is in large part responsible for that. It is most important that we work together on this important package and ensure that its aims are met. I know that many people with a disability and those who work in the disability sector welcome this bill and the implementation of the Stronger Together II package. As such, the Opposition is pleased and proud to support the bill. I commend the bill to the House.

Mr MIKE BAIRD (Manly—Treasurer) [4.41 p.m.]: I support the Payroll Tax Rebate Scheme (Disability Employment) Bill 2011. I will make a few comments about this incredibly important scheme. If I were asked which one feature of the budget I am incredibly proud of, this is certainly it. It undoubtedly fulfils a budget commitment to give people with a disability a better chance of securing a job in New South Wales, and the Government is determined to do that. The first budget this Government delivered contained three major pillars. I do not shy away from those; indeed I take pleasure in driving them forward. They are improving services, building infrastructure and protecting the vulnerable. One has to value every public dollar because all those pillars are important, but the third pillar features.

This legislation addresses the third pillar. I would argue that it proves that no political party has a monopoly on compassion. I welcome the Opposition's support for the bill. I acknowledge that the Minister for Disability Services is a strong advocate for this sector. I have not had the opportunity to discuss this bill with every single disability group, but all groups that I have discussed it with are glowing in their praise of someone who understands their concerns and will undergo the trials in achieving these aims. Many individuals in the sector cannot speak highly enough of their belief that someone in government is fighting for them and working tirelessly to improve the opportunities for those with disabilities. This is just part of the work that the Minister is doing not only on this matter but also across his portfolio to make an incredible difference.

I acknowledge the visionary role of the former Government in this scheme and note that the former Premier is in the Chamber. I do not dispute that Government's role. I place on record that Stronger Together was an incredibly important program. Stronger Together II extends that program, but the challenges in funding it were immense. I cannot begin to describe the difficulties that we had in the months after the election to find the money to complete this measure, but we did so. That is one of the strong achievements of the budget. We announced today that the State's triple-A rating was confirmed. That is good news, and the State and the Parliament need to understand the challenges that confronted Government in delivering that outcome. But it is not just about the triple-A rating, about improving services, or about building the infrastructure; it is also about protecting the vulnerable. This is but one of many measures that we should pursue as part of that mantra. I acknowledge that this bill was supported by the shadow Minister. It is not a political issue; importantly, it is a measure supported by both sides of the Parliament.

This bill is part of the Government's five-year $2 billion funding commitment to complete the Stronger Together program. It is the largest funding commitment to disability services in the history of New South Wales, and I understand it is the largest funding commitment by any government in Australia. I do not want to dwell on record amounts in any shape or form. We are looking for outcomes. The hope of this program is that each year up to 500 people in the disability sector will have a job who otherwise may not have had a job. Realising those sorts of numbers would be an unbelievable achievement. That is the goal that the Minister for Disability Services and the Government hope to achieve. I note the Opposition's support for this initiative.

I put on record that the Government is very proud to bring this initiative forward. I acknowledge the role of the current Minister, and his passion and vision regarding it. I acknowledge also the role of the former Government and former Premier in developing this scheme. This bill will allocate $8 million over four years to the expanded scheme. We are determined to deliver this outcome for people who are in very difficult circumstances but will have the opportunity to work. This will help enhance their self-esteem and give them the opportunity to participate, as they should, in a better New South Wales. I commend the bill to the House.

Ms KRISTINA KENEALLY (Heffron) [4.46 p.m.]: I support the Payroll Tax Rebate Scheme (Disability Employment) Bill 2011. I acknowledge the comments already made in this debate. I congratulate the Government on taking forward this commitment made by the previous Government because, as has been pointed out in this debate, this is an issue that should be above politics. It is an issue that goes to the very heart of what it means to be a caring society. Over the past five years in particular New South Wales has set an example for the country on what it means to invest in disability services and what it means to invest in care for the most vulnerable. Indeed New South Wales has been at the forefront of the States in leading the call for a national disability insurance scheme, which I am confident all members of this House would support. I join the Minister and the shadow Minister in supporting this legislation.

As has been said, the challenges for people with a disability to achieve employment are significant. Some stark statistics put those challenges into perspective. The Transition to Work program aims to help young people with a disability on leaving school to transition into employment. Prior to the introduction of Transition to Work only 6 per cent of school leavers who entered a day program or post-school service eventually made their way into employment. Following the introduction of the Transition to Work program, an evaluation has found that more than 50 per cent of participants are now moving into employment or further education. That is a significant outcome for those young people.

As a former Minister for Disability Services, I had the great honour of meeting many young people who had made that transition through the Transition to Work program. One of the great challenges in getting people with a disability into employment is how to encourage employers to think outside the box, to think more broadly about whom they can employ. If an incentive such as a payroll tax incentive does that, that is a really wonderful thing for the person and our society, it is a good thing for the business and it is certainly worthwhile that this State make that investment in the form of a payroll tax rebate.

I acknowledge the comments of the Treasurer in this debate today. The Government has met its commitment to deliver the $5 billion payroll tax incentive package that Labor announced: Stronger Together II. I am pleased that on other matters, such as the social impact bonds, the Government is continuing the work we started. All these things, along with a national disability insurance scheme, have the potential to fundamentally change how disability services are funded and delivered, ultimately making our State and country a fairer place—a place of true opportunity for all. The Treasurer makes the point that it is difficult to fund these programs, especially for the Government to meet that $2 billion commitment. That is a fundamental reality of government. These are expensive programs.

The projection with the demographic of New South Wales as an ageing population and one also in which the proportion of people with a disability is increasing, is a challenge that will only grow. During the global financial crisis the former Labor Government strove to meet all of its commitments under the $1.3 billion Stronger Together I program. Indeed, throughout the global financial crisis not one dollar of Stronger Together I was touched. We met our commitments. I am incredibly delighted that the O'Farrell Government has been able to meet the commitments of the $2 billion Stronger Together II package. I am confident that this House will support the bill. I am pleased to lend my name to its support.

Mr BRUCE NOTLEY-SMITH (Coogee) [4.51 p.m.]: I support the Payroll Tax Rebate Scheme (Disability Employment) Bill 2011. The bill implements the Government's commitment under Stronger Together II to provide a payroll tax rebate to employers of new employees with a disability. The bill will assist in the employment of people with a disability by establishing a payroll tax rebate scheme that gives employers an incentive to hire employees with a disability. The bill will provide a payroll tax rebate to employers of $4,000 per employee to be paid in two equal parts: $2,000 after three months of employment and $2,000 after six months of employment. An employer who satisfies the eligibility criteria will be able to claim the payroll tax rebate.

Eligibility criteria for the rebate includes that the employee must be a genuinely new employee; the employee must be in the target group under the Disability Services Act 1993 because the person has a disability; the employee must have completed the Transition to Work Program; the employee must have commenced employment on or after 1 January 2012 and before 1 July 2016, and the employee should work an average of at least 12 hours a week; the wages of the new employee must be liable for payroll tax in New South Wales, either during the period of employment or during a financial year in which the employee is employed; and the work must be performed wholly or mainly in New South Wales.

Employment agents will be able to qualify for rebates in respect of their employees provided they satisfy the criteria. Employers will not be eligible for the rebate if they are exempt from payroll tax—for example, charitable bodies that have no commercial undertakings—or if they receive other rebates such as the rebate for apprentices and trainees under the payroll Tax Act 2007, or rebates paid under the Regional Development Act 2004 or the Payroll Tax Rebate Scheme (Jobs Action Plan) Act 2011. State Government departments and non-business statutory authorities are excluded from the rebate scheme because they are largely funded from appropriations from the Consolidated Fund.

Local government authorities are exempt from payroll tax on non-business activities and also are excluded from the scheme. The bill accords with the Government's budgetary commitment to protect the most vulnerable members of the community and to enable jobs growth. People with a disability should be given every assistance possible to be part of the workforce and be given the opportunity to contribute their skills and experience to the benefit of our State's economy. My electorate of Coogee has disability service providers and many constituents with a disability. They will be greatly encouraged by this initiative. In fact, I employ in my electoral office a young person with a disability. He has proven himself to be an incredibly valuable and important part of my team.

I thank the Minister for the incredible amount of work he has put into this legislation and his genuine commitment to the cause of providing disability services. The bill recognises the enormous benefits that both the individual and the community gain from employment, particularly ordinary open employment. The flow-on effects of even three or six months of employment for a person with a significant disability can be far reaching both socially and economically. This fits with the Government's social policy agenda, which encourages early intervention to promote individual choice and responsibility. I commend the bill to the House.

Mr RICHARD TORBAY (Northern Tablelands) [4.55 p.m.]: I support the Payroll Tax Rebate Scheme (Disability Employment) Bill 2011 and commend the Minister and the Government for its introduction. The bill seeks to underpin the concept of equal employment opportunity by encouraging employers to consider employing people with a disability. Often these workers are not less able than their colleagues without disabilities but, unfortunately, inherent and embedded discrimination still exists in the workplace. The barriers to entry into the workplace by people with a disability are higher as the trend has been historically for unemployment in that sector. This bill is a sensible approach to overcoming the discrimination experienced by workers with a disability and job seekers.

The Transition to Work program has been fundamental in preparing school leavers with disabilities for life in the workplace, and has also acted as a feeder program that sources quality employees to fill job vacancies in various organisations. This bill offers the final step in implementing policy that overcomes discrimination and the overrepresentation of people with a disability in unemployment statistics. By offering a financial incentive and making that incentive accessible, realistic and properly regulated, people with disabilities will finally be treated equally in the recruitment and selection process. It is hoped that many more employers will take up the opportunity to employ workers with disabilities in a step that will, over time, reduce the stigma associated with employees with disabilities.

This Government is showing that it is committed not only to rectifying the inequity and discriminatory practice, but also to utilising human capital and enhancing jobs growth in an economy that increasingly is being subjected to the negativity of the global economic environment. The benefits of this bill will be multiple by enhancing the choice and individual gain of disabled job seekers and workers, encouraging a lower rate of unemployment amongst disabled individuals, and heightening the capacity of businesses by increasing the employment of people with disabilities. This is an excellent stimulus for clients, as stated by the Chief Executive Officer of the Ascent Group, whom the Minister knows well. The Minister's recent visit to the opening of a wonderful facility in Armidale by the Ascent Group is highly regarded and still being discussed. I sent Kevin Mead, the Chief Executive Officer of the Ascent Group, a copy of the bill. He said:

The scheme definitely will stimulate the take-up of employees with a disability.

He said further:

Potential will be expanded to other schemes. [He hopes] that the benefits will be magnified over time. Gaining a job is such a great self-esteem boost for people with disabilities. Ultimately employers will benefit from that positively as a sense of job ownership as much as the employee themselves.

That is a great quote that I have happily repeated to the House. I certainly hope that the disability employment scheme established by the bill will minimise discrimination against people with disabilities, encourage higher rates of employment, and deliver social and economic benefits to individuals, their employers, the community and the State. I congratulate the Minister and commend the bill to the House.

Mr JAI ROWELL (Wollondilly) [5.00 p.m.]: I am proud to speak to the Payroll Tax Rebate Scheme (Disability Employment) Bill 2011. Yet again this is the O'Farrell Government getting on with the job of governing for all of New South Wales. This bill will encourage employment of people with disabilities by establishing a payroll tax rebate scheme for all employers. I digress for a moment to talk about the Macarthur Disability Services in my electorate, a dynamic and innovative not-for-profit community organisation. Macarthur Disability Services has developed many services for people with a disability, families and carers over the past 29 years. It has sites across the Wollondilly-Macarthur region.

The service provides programs for people with a wide range of disabilities, including intellectual, physical, sensory, neurological, and psychiatric disabilities. It has specific programs to support carers and supports 1,000 children and adults with disabilities on a weekly basis. I am proud to say the Minister for Disability Services has supported Macarthur Disability Services with a sizeable donation. This bill will provide further assistance to Macarthur Disability Services for the great work it provides. This scheme will provide a payroll tax rebate to employers of up to $4,000 per employee. This rebate will be paid in two equal parts. After three months of employment, a rebate of $2,000 will be paid and after six months the final $2,000 will be paid for the hiring of a new employee.

To be eligible for the rebate the following criteria must be satisfied: the employee must be a genuine new employee; the employee should work for a minimum of 12 hours a week on average; the employee must be liable for payroll tax; and the work should be done wholly in New South Wales. Under the disability employment scheme any rebate for the first three months does not have to be repaid if the employee does not remain with the employer for the second three-month period. However, employees will not be able to apply and will not be eligible if they receive other rebates such as those contained in the Regional Development Act 2004.

This Government will continue to meet the budgetary commitments that we promised the people of New South Wales and will continue to protect the most vulnerable members in our community—people with disabilities—thus enabling jobs growth. This was a commitment during the election campaign and today we honour another of our election commitments to the people of New South Wales. The Macarthur Disability Services is currently providing three programs that enable people with disabilities to enter the workforce, which have great retention rates. The first program is known as the Open Employment scheme; the second is the Australian Disability Enterprises, which is at full capacity; and the third is the Transition to Work program, which caters for students with disabilities leaving year 12 and wishing to enter the workforce. The current retention rate for that program is approximately 95 per cent.

The Wollondilly-Macarthur region is currently noted as a high priority for the New South Wales Government. Macarthur Disability Services works in partnership with other agencies to deliver indigenous employment to the region. The organisation has been running for 30 years providing employment within my electorate for people with a disability. I am proud to say this bill will go a long way to help those service providers in assisting people to get a job. This bill recognises the enormous benefits that both the individuals and the community can gain from employment, and the massive flow-on effects that this bill will have on society.

The O'Farrell Government is serious about the social policy agenda it took to the last election that encourages early intervention to promote individual choice and responsibility. This bill will provide exactly that to the disabled of New South Wales. I know firsthand the type of work that Macarthur Disability Services and many other organisations such as Community Links Wollondilly Inc. provide to the disabled community of Wollondilly. This bill shows continued Government support for such organisations. I welcome the initiatives of the Government and commend the Minister for Disability Services and the Treasurer for their commitment to ensuring the positive reform of this legislation. I commend the bill to the House.

Ms TANIA MIHAILUK (Bankstown) [5.03 p.m.]: I will make a brief contribution to debate on the Payroll Tax Rebate Scheme (Disability Employment) Bill 2011 and lend my support to the bill. The bill is part of the ongoing Stronger Together program initiated by the former Government. Stronger Together is a 10-year plan to increase disability services, and support and acknowledge the Government's ongoing support for this program. The community welcomes bipartisan support for the implementation of the package. It is appropriate that this House is considering this bill today as this week is Carers Week.

This week is an opportunity to acknowledge the great work undertaken by carers in New South Wales, many of whom give up not only their personal time but also an opportunity to have a career of their own. As legislators it is important that we do everything in our power to support the vulnerable in our community and those that support them. This bill is an attempt to encourage employment of people with disabilities and the Opposition certainly supports it. I am supportive of any reasonable proposal to encourage businesses to take on disabled employees. As with all proposals for disability employment programs, our primary concern is to ensure adequate protections are in place to prevent disabled people from being exploited or taken advantage of.

We would like the Government to do everything in its power to prevent employers from taking advantage of the system without providing the employment opportunities that are expected in return. The electorate of Bankstown is fortunate to have a number of employment providers that assist people with a disability in finding long-term employment. The bill proposes two eligible employment periods of three and six months and at the conclusion of each period the employer is eligible to receive a rebate of $2,000, totalling $4,000 over a six-month period. I ask the Minister to monitor those employers who have received the rebate or receive the rebate in the future to make sure there are no unintended consequences of the scheme, such as individuals being released and replaced unnecessarily.

I commend the oversight elements in the bill, which I understand provide significant powers to the Chief Commissioner of State Revenue to oversee the payment of rebates and require the repayment of rebates for non-compliance. The bill gives the chief commissioner considerable investigative powers to facilitate any necessary investigations into compliance with the scheme. I also note an opportunity for recourse for determination by the chief commissioner through the Administrative Appeals Tribunal. I take this opportunity to congratulate the former Labor Government on announcing this scheme in 2010. I also take this opportunity to commend the Government and the Minister for implementing this scheme. For those in this Chamber who do not know, I have a brother who is disabled—I am his legal guardian. I have a lifetime of experience dealing with disability services and I certainly know firsthand how important is any support that we can give to people living with a disability. I commend the bill to the House.

Mr TIM OWEN (Newcastle) [5.07 p.m.]: It gives me great pleasure to speak on this bill and to warmly congratulate the Minister for Disability Services and acknowledge the bipartisan support for this legislation. As many speakers have said, the Payroll Tax Rebate Scheme (Disability Employment) Bill 2011 implements a Government budget commitment to give people with disability a better chance of securing a job in New South Wales. As the Treasurer said in June this year, and reiterated today, the introduction of a payroll tax rebate scheme is delivering the Liberal-Nationals commitment to rebuild the economy of New South Wales. This bill also provides an opportunity to implement a very key part of the Jobs Action Plan for the more vulnerable in our society. More specifically, the bill will provide a payroll tax rebate to employers of up to $4,000 per employee. The rebate will be paid in two equal parts: after three months and six months respectively from the time of hire of a new employee.

Unlike the Jobs Action Plan rebate scheme, under the disability employment scheme any rebate for the first three months does not have to be repaid if the employee does not remain with the employer for the second three-month period. To ensure proper eligibility is met, employees must be genuinely new employees, employees must have completed a Transition to Work program administered by the New South Wales Department of Family and Community Services, the work must be performed wholly and primarily in New South Wales, and the employee must be liable for payroll tax. Employers will not be eligible for the rebate if they receive other rebates such as the rebate for the apprentices and trainees under the Payroll Tax Act 2007. Furthermore, this bill recognises the enormous benefit that the individual and community gain from employment. The flow-on effects of even three or six months employment for a person with a significant disability can be far-reaching, both socially and economically. The Payroll Tax Rebate Scheme (Disability Employment) Bill fits with our Government's social policy agenda, which encourages early intervention to promote individual choice and responsibility. We want New South Wales to be the first choice for business and jobs as a result of a strong economy. This is the message our Government is sending across the State. It is wholly appropriate that we provide this opportunity to the more vulnerable in our society. It gives me great pleasure to commend this bill to the House.

Mr TONY ISSA (Granville) [5.10 p.m.]: I am pleased that the two sides of the House have come together today to support this magnificent bill, which acknowledges the need to engage disabled people in the community and the workforce. It is a historical day when the two sides of the House come together in support of a bill. It is a step forward and I hope it becomes a habit in the future. I support the Payroll Tax Rebate Scheme (Disability Employment) Bill 2011, which implements the Government's commitment under Stronger Together to provide a payroll tax rebate to employers of new employees with a disability. The bill will assist in the employment of people with a disability by establishing a payroll tax rebate scheme that gives employers an incentive to hire employees with a disability. The bill will provide a payroll tax rebate to employers of $4,000 per employee. Employers will be paid the rebate in two equal parts—$2,000 after three months of employment and $2,000 after six months of employment. An employer who satisfies the eligibility criteria will be able to claim the payroll tax rebate.

The eligibility criteria for the rebate includes: the employee must be a genuinely new employee; the employee must be in the target group under the Disability Services Act 1993, that is, the person has a disability; the employee must have completed the Transition to Work Program; the employee must have commenced employment on or after 1 January 2012 and before 1 July 2016; and the employee should work an average of at least 12 hours a week. The wages of the new employee must be liable for payroll tax in New South Wales either during the period of employment or during a financial year in which the employee is employed and the work must be performed wholly or mainly in New South Wales.

Certain employment arrangements will not be eligible for the rebate, for example, employing people under a labour hire arrangement where liability for payroll tax arises under payroll tax provisions applying to employment agents and engaging independent contractors who are not engaged as employees. Employment agents will be able to qualify for rebates in respect of their own employees provided they satisfy the criteria. Employers will not be eligible for the rebate if they are exempt from payroll tax—for example, charitable bodies that have no commercial undertakings—or if they receive other rebates such as the rebate for apprentices and trainees under the Payroll Tax Act 2007 and rebates paid under the Regional Development Act 2004 or the Payroll Tax Rebate Scheme (Jobs Action Plan) Act 2011. It gives me pleasure to commend the bill to the House.

Mr PAUL TOOLE (Bathurst—Parliamentary Secretary) [5.13 p.m.]: I support the Payroll Tax Rebate Scheme (Disability Employment) Bill 2011 and commend the Treasurer and the Minister for Ageing, and Minister for Disability Services for bringing this bill before the House. This bill encourages the employment of people with a disability by establishing a payroll tax rebate scheme that gives employers an incentive to employ disabled workers. The disability employment rebate scheme will provide a payroll tax rebate to employers of up to $4,000 per employee. Employers will be paid the rebate in two equal parts, that is, it will be made available after three months and six months of the hire of a new employee.

When organisations employ people with a disability they benefit from having employees who have the skills and aptitude to do their job effectively and efficiently. Statistics on employing people with disabilities show low absenteeism, low staff turnover, low incidence of workplace injury and employee loyalty. Employed people with disabilities create a productive and cost-effective business. In New South Wales and Australia our ageing population will have an impact on all major industries and occupations in years to come. Research has shown a prospective shortfall in employees between 2006 and 2011 of up to 195,000 people. This rebate scheme will give businesses the opportunity to employ people with a disability. I commend the bill to the House. Although the Government has had certain constraints within its budget, I am pleased that the Minister and the Treasurer have been able to deliver this bill to the people of New South Wales.

Mr GLENN BROOKES (East Hills) [5.15 p.m.]: I support the Payroll Tax Rebate Scheme (Disability Employment) Bill 2011, which implements the Government's commitment to provide a payroll tax rebate to employers of new employees with a disability. It is a pleasure to be able to speak to this bill, which creates a positive outcome for people with disabilities. It is a pleasure to be part of a Government that is prepared to create an incentive to generate employment opportunities for the disabled within our society. This Government is willing to create incentives that stimulate job growth, reduce the dependence of people on welfare and decrease unemployment. This Government is taking positive steps to make New South Wales number one again.

The Payroll Tax Rebate Scheme (Disability Employment) Bill creates a sound balance between the desire of disabled people to enter the workforce and the legitimate needs of employers who are able to provide appropriate positions. The bill recognises that not all disabled people are able to work a full-time week and provides for a 12-hour working week or less, where reasonable. To further create an employment incentive the bill specifies that the employer will receive the payroll tax rebate in two equal portions, each portion to be received after the completion of the first three months and then six months of employment. All employers who meet the criteria will be able to claim the payroll tax rebate. Employers that have been excluded, such as charitable organisations, already receive tax and other incentives for the work that they do. The bill accords with the Government's budgetary commitment to protect the most vulnerable members within our community while at the same time enabling jobs growth. This bill has far-reaching consequences. It not only helps people with disabilities but also benefits employers by enabling them to give back to the community. This bill goes further than providing only economic benefits. I commend the bill to the House.

Mr ANDREW CONSTANCE (Bega—Minister for Ageing, and Minister for Disability Services) [5.19 p.m.], in reply: I thank those members who contributed to debate on the Payroll Tax Rebate Scheme (Disability Employment) Bill 2011—the member for Manly, the member for Auburn, the member for Heffron, the member for Northern Tablelands, the member for Wollondilly, the member for Bankstown, the member for Newcastle, the member for Granville, the member for Bathurst and the member for East Hills. Taking on board what the member for East Hills said—and he is dead right—this legislation is not just about people with a disability; it breaks down enormous barriers that exist across our community and it ensures that those in the workplace without a disability can gain considerably by working alongside people with a disability.

I thank in particular the member for Heffron and the member for Auburn for their comments this evening. The member for Heffron and I both know well that the disability sector in this State expects bipartisanship on disabilities. That has been displayed in the way in which this debate has been conducted this afternoon, but it goes further than that. I recognise the contribution of the member for Heffron, a former disability Minister. We both recognise that the Stronger Together plan is pivotal to providing good outcomes for people with a disability across the State. This payroll tax rebate for employers will provide enormous opportunities for some 500 people with a disability to take on employment having completed the Transition to Work program.

All members who participated in the debate were in full agreement. I acknowledge in particular the member for Northern Tablelands who spoke of Kevin Meade and the Ascent Group, who do a wonderful job in the Northern Tablelands. The member for Wollondilly referred to the Macarthur Disability Service which, likewise, does an enormous job in the Macarthur region. The member for Bankstown raised the issue of the ongoing monitoring of the program, which is what we will do. I point out that an eligible employment period exists as part of this bill in order to attract the rebate, and the chief commissioner will oversight the scheme. The legislation also provides for exemptions, particularly in relation to the minimum average hours of work required. We recognise that in some circumstances people with a disability need to have flexibility in the workplace.

I also take on board what was said during the debate, particularly by the member for Bathurst, that people with a disability value the opportunity to enjoy what the rest of us take for granted—the prospect of employment. Business owners cannot make a mistake in taking on a person with a disability. This legislation, which is well targeted, will deliver that incentive to business owners. We will continue to monitor the scheme, as we should with all government programs, and I know that those outcomes will be achieved. The bill accords with the Government's budgetary commitment to protect the most vulnerable members in the community and to enable jobs growth. It provides assistance to people who will benefit even from the opportunity to hold a real job, and it meets the Government's desires to target assistance as part of a program designed to enhance life and work skills, to promote individual choice and to assist people to enjoy the quality of life that the rest of the community enjoys. I commend the bill to the House.

Question—That this bill be now agreed to in principle—put and resolved in the affirmative.

Motion agreed to.

Bill agreed to in principle.


Passing of the Bill

Bill declared passed and transmitted to the Legislative Council with a message seeking its concurrence in the bill.