Ms MACKLIN (Minister for Families, Housing, Community Services and Indigenous Affairs) (12:15 PM) —in reply—I thank the member for Shortland for her comments, personal remarks and support. I appreciate that very much. And I appreciate the opposition’s support for the Family Assistance Legislation Amendment (Participation Requirement) Bill 2009. In summing up, I think it is important to just go back a few months and recognise that in April this year the government, through the Council of Australian Governments, agreed on a very significant plan to increase young people’s participation in education and training. I think everybody in the parliament understands the value of completing secondary school and the impact that early school leaving has on a young person’s lifelong employment outcomes. We have been determined through this Compact with Young Australians to make sure that we do everything possible to provide an education or training place for young people under the age of 25.

The legislation in front of us today is in support of the initiatives in the compact. This legislation will make secondary education a requirement for payment of family tax benefits for young people aged over 16. It is a very significant piece of legislation. From next year, a child aged 16 to 20 will have to be studying towards year 12 or an equivalent qualification, or have completed such a course, to be eligible for family tax benefit part A. This requirement will of course be subject to certain exemptions to take into account a young person’s capacity to actually complete a program of study. They may have problems of a physical, psychiatric, intellectual or learning disability nature. There will be exemptions where there is no locally accessible approved course of education or study and no such course is available by distance education. There will also be exemptions where there are special circumstances that make it unreasonable for the young person to undertake the course. The provisions will also provide some flexibility in relation to the young person’s study load where a different load is appropriate to the young person’s circumstances—due to illness, for example.

The new participation requirement introduced by this bill will apply from 1 January 2010 for new claimants and end-of-year lump sum claimants. Families who have already claimed payments by instalment for a period before 1 January 2010 will have the new rules applied from 1 May 2010. This later starting date for existing customers will give Centrelink adequate time to make necessary IT system changes.

As I said before, these are very significant changes. They are a clear statement by the government that family payments are provided for a purpose. They should be directed in the best interests of children. I think we all understand that education is a key driver of future success for children; our family payments system will support this policy goal. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Ordered that the bill be reported to the House without amendment.