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Wednesday, 9 May 2012
Page: 2984

Senator JACINTA COLLINS (Victoria—Manager of Government Business in the Senate and Parliamentary Secretary for School Education and Workplace Relations) (18:02): I table a statement of reasons relating to the Family Assistance and Other Legislation Amendment (Schoolkids Bonus Budget Measures) Bill 2012 and seek leave to have a statement incorporated in Hansard.

Leave granted.

The statement read as follows—

STATEMENT OF REASONS FOR INTRODUCTION AND PASSAGE IN THE 2012 WINTER SITTINGS

FAMILY ASSISTANCE AND OTHER LEGISLATION AMENDMENT (SCHOOLKIDS BONUS BUDGET MEASURES) BILL 2012

Purpose of the Bill

This Bill will deliver new assistance to families to help with the costs of their child’s education. This new payment - the schoolkids bonus - is a 2012-13 Budget measure that will replace the education tax refund paid through the taxation system.

The Bill will:

create a separate, ongoing new payment in the family assistance legislation (called a schoolkids bonus), which would be paid in two instalments in January and July each year from 2013 onwards;

remove the education tax refund for 2011-12 and after from the taxation legislation;

create a new payment in the family assistance and veterans’ entitlements legislation (called an ETR payment), which would relate to a family’s circumstances on 8 May 2012 only and replace their education tax refund entitlement for 2011-12.

Reasons for Urgency

Urgent passage is needed for this Bill so the Australian Taxation Office can reflect the changes to the tax law for 2011-12 in the materials that more than 12 million Australians use to do their tax returns. The tax materials for 2011-12 needs to be finalised by 15 May 2012, so changes to the Education Tax Rebate need to be decided by then.

The Department of Human Services also needs to finalise system requirements to ensure delivery of the one-off ETR payments to families by end June 2012.