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Tuesday, 27 August 2002
Page: 5743


Mr SWAN (2:01 PM) —My question is directed to the Minister for Children and Youth Affairs and it concerns the government's family payments system. Minister, are you aware that a family receiving family tax benefit A and B, who has provided three new estimates of income for each partner immediately when changes in income have occurred during the year, and whose final estimates of income are around $2,000 lower than their estimate, can still incur a debt of $1,940? Minister, why won't you change the rules so that parents who have played by the rules are not left with such a large debt—a debt that they have not budgeted for?


Mr ANTHONY (Minister for Children and Youth Affairs) —To address the member for Lilley's question: in the last week or so we have very clearly explained the family tax benefit system to the opposition. I would like to reiterate that Centrelink have been running a communication campaign for quite some time, particularly for the Australian public, emphasising to Australian families—bear in mind that they are receiving more payments under this government than they ever did under the ALP government—that a requirement of the family tax benefit system, which is part of the tax act, is that if there is a change in their circumstances they must notify Centrelink of that change. If Australian families overestimate their income at the end of the year, we have given them the opportunity for the first time ever through the reconciliation process to reconcile and receive a top-up payment. We have been quite open and transparent about this.

Family tax benefit part A and B, which is obviously paid either to sole parents or to the parent who is not working, is an incentive or a reward for those who choose to stay at home. As far as the family tax benefit operation is concerned, the member for Lilley may not realise that I am not the minister responsible for that area. As to the family tax benefit, the government is determined to see more money going to Australian families at the end of the day.

The onus is on Australian families to give accurate estimations of their income. There have been some examples given. The member for Lilley recently trotted out an example of where a family estimated their income at maybe $20,000 in the first four or five months—they made a few variations. If there is an income of $50,000 at the end of 12 months, there is a major change in the amount of money to which they are entitled. I do not think the Australian public would be critical of the fact that it is means tested and that there is a requirement of an accurate estimation, and that was the provision that we put into the act.