Ms Grierson asked the Minister representing the Minister for Family and Community Services, upon notice, on 12 December 2002:

(1) How many families and individuals in the electoral division of Newcastle in (a) 2000, (b) 2001 and (c) 2002 received a (i) Family Tax Benefit debt notice and (ii) Child Care Benefit debt notice.

(2) Of these debts, how many were incurred in each year, despite individuals having changed their estimation of income to reflect their changed circumstances during the year.

(3) How many childcare centres in the electoral division of Newcastle have received a debt notice arising from the old Child Care Assistance Scheme.

(4) What steps is the Government taking to ensure that low and middle-income families, who are unable to accurately predict 12 months in advance their annual income, will not be penalised by the family payment system.

Mr Anthony (Minister for Children and Youth Affairs) —The Minister for Family and Community Services has provided the following answer to the honourable member's question:

Please note that the information can only be given per financial year, not per calendar year as requested.

2000-01 Financial Year

(1) (a) (i) As at 28 June 2002, 3993 customers in the electoral division of Newcastle had received notification that they incurred a Family Tax Benefit debt as a result of the income reconciliation process for the 2000-01 financial year.

(ii) As at 28 June 2002, 970 customers in the electoral division of Newcastle had received notification that they incurred a Child Care Benefit debt as a result of the income reconciliation process for the 2000-01 financial year.

2001-02 Financial Year

(1) (b) (i) As at 13 December 2002, 2995 customers in the electoral division of Newcastle had received notification that they incurred a Family Tax Benefit debt as a result of the income reconciliation process for the 2001-02 financial year.

(ii) As at 13 December 2002, 730 customers in the electoral division of Newcastle had received notification that they incurred a Child Care Benefit debt as a result of the income reconciliation process for the 2001-02 financial year.

2000-01 Financial Year

(2) (a) (i) As at 28 June 2002, 686 customers in the electoral division of Newcastle who had changed their estimation of income during the 2000-01 financial year, received notification that they incurred a Family Tax Benefit debt for the 2000-01 financial year.

(ii) As at 28 June 2002, 270 customers in the electoral division of Newcastle who had changed their estimation of income during the 2000-01 financial year, received notification that they incurred a Child Care Benefit debt for the 2000-01 financial year.

2001-02 Financial Year

(2) (b) (i) As at 13 December 2002, 245 customers, in the electoral division of Newcastle who had changed their estimation of income during the 2001-02 financial year, received notification that they incurred a Family Tax Benefit debt for the 2001-02 financial year.

(ii) As at 13 December 2002, 117 customers, in the electoral division of Newcastlewho hadchanged their estimation of income during the 2001-02 financial year, received notification that they incurred a Child Care Benefit debt for the 2001-02 financial year.

(3) Forty one child care centres in the electoral division of Newcastle received a debt notice arising from the Child Care Assistance Scheme.

(4) The Family Assistance Office actively helps families to avoid or minimise family assistance overpayments resulting from underestimates of income through a range of communications with customers explaining the income estimation process and encouraging customers to keep their estimates up-to-date. Families are encouraged to estimate at the top of the range of their possible income for the year and can change their estimate as often as they wish.

With the introduction of the `More Choice for Families' measures, from November 2002, families who are unsure of their income are still advised to provide an estimate closer to the top of their expected income range but do not have to overestimate their income in order to avoid an overpayment. Under the measures, families are able to match their payment arrangements to their family's circumstances and avoid and reduce debts without losing their health care cards or having their Child Care Benefit unintentionally reduced.