Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Social Services Legislation Amendment (Family Payments Structural Reform and Participation Measures) Bill 2015

Bill home page  


Download WordDownload Word


Download PDFDownload PDF

2013-2014-2015

 

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

 

 

 

SOCIAL SERVICES LEGISLATION AMENDMENT

(FAMILY PAYMENTS STRUCTURAL REFORM AND PARTICIPATION MEASURES) BILL 2015

 

 

 

 

SUPPLEMENTARY EXPLANATORY MEMORANDUM

 

 

 

 

 

Amendments to be moved on behalf of the Government

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Circulated by the authority of the

Minister for Social Services, the Hon Christian Porter MP)





SOCIAL SERVICES LEGISLATION AMENDMENT

(FAMILY PAYMENTS STRUCTURAL REFORM AND PARTICIPATION MEASURES) BILL 2015

 

Amendments to be moved on behalf of the Government

 

OUTLINE

 

Removal of measures

 

These Government amendments remove from the Bill the following Schedules:

 

·          Schedule 1 (Payment rates); and

·          Schedule 3 (Family tax benefit supplements).

 

Further, Government amendments are made to Schedule 2 to remove amendments that would:

 

·          increase the standard rate by $1,000.10 per year for families with a youngest child aged under one; and

  • introduce a reduced standard rate of $1,000.10 per year for single parent families with a youngest child aged 13 to 16 (currently $2,737.50), and extend this rate to grandparent carers with a youngest FTB child in this age range.

 

The measures being removed from this Bill will be reintroduced in a separate Bill.

 

Reforms to family tax benefit Part B

 

The measure currently provided by Schedule 2 (Family tax benefit Part B rate) to remove family tax benefit Part B for couple families (other than grandparents) with a youngest child aged 13 or over from 1 July 2016 will proceed in this Bill.  It will also be made clear that great-grandparent couple families, as well as grandparent couple families, will not be affected by the measure.

 

Therefore, single parents, grandparents and great-grandparents caring for a youngest child aged 13 to 18 will continue to be eligible for the family tax benefit Part B standard rate of $2,737.50 (excluding the end-of-year supplement).  However, the standard rate of family tax benefit Part B for families with a youngest child aged under one will also not be increased by $1,000.10 per year.

 

Financial impact statement

 

The net savings from the removed measures will not be realised in this Bill.

 

The revised financial impact of the reforms to family tax benefit Part B in this Bill is a saving of $525.5 million over the forward estimates (indicative, fiscal balance, whole of Government).

 



SOCIAL SERVICES LEGISLATION AMENDMENT

(FAMILY PAYMENTS STRUCTURAL REFORM AND PARTICIPATION MEASURES) BILL 2015

 

 

Amendments to be moved on behalf of the Government

 

NOTES ON AMENDMENTS

 

Amendment 4 omits Schedule 1 from the Bill.  Schedule 1 provides for an increase in family tax benefit Part A fortnightly rates and certain social security rates for under-18 year olds.  Amendment 1 makes a consequential amendment to the long title of the Bill to remove the reference to social security.

 

Amendment 10 omits Schedule 3 from the Bill.  Schedule 3 provides for the phasing out of the family tax benefit Part A and Part B supplements.

 

Amendments 2 and 3 are consequential amendments that remove the commencement provisions relating to Schedules 1 and 3 from the table in clause 2 of the Bill.

 

Under the current rules, an FTB child who has turned 16 is disregarded for the purposes of family tax benefit Part B unless they are a senior secondary school child (as defined in section 22B of the Family Assistance Act) and the calendar year in which the child turned 18 has not ended.  The amendments made by items 1 to 3 of Schedule 2 to the Bill modify these rules so that an FTB child is disregarded for the purposes of family tax benefit Part B unless they are a senior secondary student and the calendar year in which the child turns 16 has not ended.  Amendment 5 omits these items.  The effect is to restore the current rules to single parent families and grandparent and great-grandparent carers.

 

Amendments 6 and 7 insert references to great-grandparents into relevant provisions in new clause 28D, as inserted by item 4 of Schedule 2.  This will ensure that great-grandparents (as well as grandparents) can continue to access family tax benefit Part B after their youngest FTB child has turned 13. 

 

Items 5 to 9 in Schedule 2 to the Bill insert a new standard rates table for family tax benefit Part B and make other related amendments.  Amendment 8 omits these items.  This means that the standard rate (Part B) for single parent families and grandparent or great-grandparent carers with a youngest child who is at least 13 years of age will be the same as the rate attracted by a youngest child who is aged five to 12.  There will be no new reduced rate for a youngest FTB child who has turned 13.  However, the standard family tax benefit Part B rate for a youngest child aged under one will also not be increased. 

 

Amendment 9 makes a consequential amendment to the application provision to remove subitem 10(2).