The proposal is similar to one Opposition Leader Anthony Albanese raised in broad terms earlier this month,which the Morrison government claimed would cost businesses $20 billion annually,forcing Labor to distance itself from the idea.
Businesses employing casuals,who already receive a typical 25 per cent loading,would have to pay for their days off under the McKell plan. Platforms like Uber or customers would bear the cost in the case of independent contractors.
The money,based on hours worked or services delivered,would go into a trust fund that would follow workers from job to job and cover their income when they were on leave.
McKell’s Victorian executive director,Ryan Batchelor,said while each industry should determine its own arrangements and payment rates based on further research,leave should not come at the expense of lower pay for casuals.
“The casual loading is not just about the leave that they’re not getting access to,it also is a compensation for the inherent insecurity and lack of certainty about future work that they’ve got,” said Mr Batchelor,a former senior Labor staffer.
Industrial Relations Minister Christian Porter said he was not surprised by the report,saying it confirmed that proposals to give paid leave to millions of new workers would be massively expensive for businesses.
“Unlike Labor,the authors of the McKell Institute report have at least had the courage to try and answer the multibillion-dollar question as to who would ultimately pay for Labor’s plan,” Mr Porter said.