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Schedule 2—Family tax benefit amendments

Schedule 2 Family tax benefit amendments

Part 1 Amendments commencing day after Royal Assent

A New Tax System (Family Assistance) Act 1999

1  At the end of section 6

Add:

Requirements for certifications and applications for determinations

             (8)  The following must be made in the form and manner, contain any information, and be accompanied by any documents, required by the Secretary:

                     (a)  a certification under paragraph (3)(a) or (b), (4)(b) or (5)(b);

                     (b)  an application for a determination under subsection (6).

2  Application of amendments

The amendments of section 6 of the A New Tax System (Family Assistance) Act 1999 made by this Part apply in relation to certifications, and applications for determinations, made after this item commences.

Part 2 Amendments commencing on Proclamation

A New Tax System (Family Assistance) Act 1999

3  Subsection 3(1)

Insert:

FTB child rate reduction period has the meaning given by subsection 61A(2) or 61B(2).

Note:          The FTB child rate reduction period relates to a child who does not meet the health check or immunisation requirements under section 61A or 61B.

5  Sections 61A and 61B

Repeal the sections, substitute:

61A   Reduction in FTB child rate unless health check requirement satisfied

             (1)  An individual’s FTB child rate in relation to an FTB child is reduced under subclause 7(2) or 26(3) of Schedule 1 if:

                     (a)  in the income year in which the child turned 4:

                              (i)  the individual was entitled to be paid family tax benefit in respect of the child; and

                             (ii)  the individual, or the individual’s partner, was receiving a social security pension, a social security benefit, a service pension or income support supplement; and

                     (b)  before the day the child turned 5, the individual was sent a notice by the Secretary informing the individual of the following:

                              (i)  the requirement for the child to undertake a health check before the day the child turns 5, or before any later day determined by the Secretary under subsection (5);

                             (ii)  the fact that the individual’s FTB child rate in relation to the child will be reduced if the child does not meet the requirement; and

                     (c)  the child was an FTB child of the individual on the day the child turned 5; and

                     (d)  none of the following applies:

                              (i)  the FTB child meets the health check requirement before the applicable day (see subsections (4) and (8));

                             (ii)  the FTB child is in a class exempted from the health check requirement by a determination under paragraph (9)(b);

                            (iii)  the FTB child is in a class that is taken to meet the health check requirement by a determination under paragraph (9)(c);

                            (iv)  the Secretary is satisfied that special circumstances exist in relation to the individual or the individual’s partner (or both) that make it inappropriate for the individual, and the individual’s partner, to arrange for the FTB child to meet the health check requirement.

Note:          See also sections 61C (persons still entitled to FTB despite reductions to nil) and 61D (death of an FTB child).

Meaning of FTB child rate reduction period

             (2)  The individual’s FTB child rate in relation to the child is reduced for each day in the period (the FTB child rate reduction period ):

                     (a)  beginning on the applicable day (see subsection (4)); and

                     (b)  ending after the relevant number of days (see subsection (3));

(whether or not the individual continues to be entitled to be paid family tax benefit in respect of the child for the whole period).

Meaning of relevant number of days

             (3)  The relevant number of days is the number of days, in the income year in which the child turned 4, on which:

                     (a)  the individual was entitled to be paid family tax benefit in respect of the child; and

                     (b)  the individual, or the individual’s partner, received a social security pension, a social security benefit, a service pension or income support supplement .

Meaning of applicable day

             (4)  For the purposes of this section, the applicable day is:

                     (a)  the day the child turns 5; or

                     (b)  the day after any later day determined by the Secretary under subsection (5).

Determining later days

             (5)  The Secretary may, in writing, determine a later day for the purposes of this section.

             (6)  For the purposes of subsection (5):

                     (a)  an application for a later day may be made after the child turns 5, but must be made before the child turns 6; and

                     (b)  the Secretary must not determine a later day unless the Secretary is satisfied that there are special circumstances which prevented the individual, or the individual’s partner (or both), from arranging for the child to undertake the health check before the day the child turned 5; and

                     (c)  any later day determined by the Secretary must not be after the day the child turns 6.

Exemption on the grounds the health check requirement inappropriate

             (7)  An application under subparagraph (1)(d)(iv) must be:

                     (a)  made before the child turns 5; and

                     (b)  must be made in the form and manner, contain any information, and be accompanied by any documents, required by the Secretary.

Health check requirement

             (8)  For the purposes of this section, the health check requirement for a child is that the child must meet the requirements specified in an instrument under paragraph (9)(a).

Legislative instrument

             (9)  The Minister may, by legislative instrument:

                     (a)  specify requirements relating to the health of children for the purposes of subsection (8); or

                     (b)  determine that children included in a specified class are exempt from the health check requirement; or

                     (c)  determine that children included in a specified class are taken to meet the health check requirement.

61B   Reduction in FTB child rate unless immunisation requirements satisfied

             (1)  An individual’s FTB child rate in relation to an FTB child is reduced under subclause 7(2) or (3) or 26(3) or (4) of Schedule 1 if:

                     (a)  the child is an FTB child of the individual or the individual’s partner; and

                     (b)  the child does not meet the immunisation requirements set out in section 6:

                              (i)  for a claim made under the Family Assistance Administration Act for payment of family tax benefit for a past period—on the day the claim is determined; or

                             (ii)  for family tax benefit paid to the individual in instalments—before the end of the grace period (see subsection (4)).

Note:          See also sections 61C (persons still entitled to FTB despite reductions to nil) and 61D (death of an FTB child).

Meaning of FTB child rate reduction period

             (2)  If family tax benefit is paid to the individual in instalments, the individual’s FTB child rate in relation to the child is reduced for each day in the period (the FTB child rate reduction period ):

                     (a)  beginning on the day specified as the date of the notice given in relation to the child under subsection (3); and

                     (b)  ending on the day the child meets the immunisation requirements;

(whether or not the individual continues to be entitled to be paid family tax benefit in respect of the child for the whole period).

Note:          For an individual who claims family tax benefit for a past period, the FTB child rate is reduced as a lump sum (instead of for a day): see subclauses 7(3) and 26(4) of Schedule 1.

Grace period

             (3)  For the purposes of subparagraph (1)(b)(ii), if, at any time, the Secretary becomes aware that an FTB child of an individual does not meet the immunisation requirements set out in section 6, the Secretary must give a notice to the individual informing the individual of the following:

                     (a)  the fact that the child does not meet the immunisation requirements;

                     (b)  the requirement for the child to meet the immunisation requirements before the end of the grace period;

                     (c)  the fact that the individual’s FTB child rate in relation to the child will be reduced if the child does not meet the requirements before the end of that period.

             (4)  The grace period :

                     (a)  begins on the day specified as the date of the notice given to the individual in relation to the child; and

                     (b)  ends 63 days after that day.

61C   Persons still entitled to FTB despite reductions to nil

                   Despite section 31 of the Family Assistance Administration Act, the Secretary must not vary a determination so that the individual is not entitled to be paid family tax benefit merely because the individual’s rate of family tax benefit is nil as a result of section 61A or 61B of this Act.

61D   Death of an FTB child

             (1)  Section 61A or 61B does not apply in relation to an FTB child of an individual if the child dies:

                     (a)  for section 61A—before the child turns 5, or any later day determined by the Secretary under subsection 61A(5); or

                     (b)  for section 61B—during the grace period in subsection 61B(4); or

                     (c)  in any case—during the FTB child rate reduction period in relation to the child.

             (2)  Section 61A or 61B does not apply on and from the day the child dies.

6  Clause 7 of Schedule 1

Omit “Subject to”, substitute “(1) Subject to subclauses (2) and (3) and”.

7  At the end of clause 7 of Schedule 1

Add:

Reduction during reduction period for failing to have health check or meet immunisation requirements

             (2)  If either or both section 61A and subparagraph 61B(1)(b)(ii) apply in relation to an individual and an FTB child of the individual, the annual FTB child rate in relation to the child is reduced by $737.30 for each day in the FTB child rate reduction period (except any day in a past period to which subclause (3) applies).

Reduction of past period claims for failing to meet immunisation requirements

             (3)  The annual FTB child rate in relation to an FTB child of an individual is reduced by $737.30 if subparagraph 61B(1)(b)(i) applies in relation to the individual and the child.

8  Subclause 26(1) of Schedule 1

After “Subject to”, insert “subclauses (3) and (4) and”.

9  At the end of clause 26 of Schedule 1

Add:

Reduction during reduction period for failing to have health check or meet immunisation requirements

             (3)  If either or both section 61A and subparagraph 61B(1)(b)(ii) apply in relation to an individual and an FTB child of the individual, the annual FTB child rate in relation to the child is reduced by $737.30 for each day in the FTB child rate reduction period (except any day in a past period to which subclause (4) applies).

Reduction of past period claims for failing to meet immunisation requirements

             (4)  The annual FTB child rate in relation to an FTB child of an individual is reduced by $737.30 if subparagraph 61B(1)(b)(i) applies in relation to the individual and the child.

10  Clause 2 of Schedule 4 (table item 1)

Omit “clause 7”, substitute “subclause 7(1)”.

11  Clause 2 of Schedule 4 (after table item 1)

Insert:

 

2

Reduction in FTB child rate (Part A—Method 1)

Reduction in FTB child rate (A1)

[Schedule 1—subclauses 7(2) and (3)—all amounts]

12  Clause 2 of Schedule 4 (after table item 6)

Insert:

 

7

Reduction in FTB child rate (Part A—Method 2)

Reduction in FTB child rate (A2)

[Schedule 1—subclauses 26(3) and (4)—all amounts]

13  Subclause 3(1) of Schedule 4 (table item 1)

After “FTB child rate (A1)”, insert “and reduction in FTB child rate (A1)”.

14  Subclause 3(1) of Schedule 4 (table item 6)

After “FTB child rate (A2)”, insert “and reduction in FTB child rate (A2)”.

15  Subclause 3(3) of Schedule 4 (heading)

Repeal the heading, substitute:

No indexation of certain FTB rates and reductions on 1 July 2017 and 1 July 2018

16  Subclause 3(3) of Schedule 4

After “(A2),”, insert “the reduction to those rates,”.

A New Tax System (Family Assistance) (Administration) Act 1999

17  Subsections 107(3A) to (3D)

Repeal the subsections.

18  Subparagraph 109D(4)(c)(ii)

Omit “review; or”, substitute “review.”.

19  Paragraphs 109D(4)(d) to (g)

Repeal the paragraphs.

20  Subparagraph 109E(3)(c)(ii)

Omit “review; or”, substitute “review.”.

21  Paragraphs 109E(3)(d) to (g)

Repeal the paragraphs.

22  Application of amendments

(1)       The amendments of the A New Tax System (Family Assistance) Act 1999 and the A New Tax System (Family Assistance) (Administration) Act 1999 made by this Part apply in relation to the day (the commencement day ) this item commences and later days.

(2)       However, despite the amendments of those Acts made by this Part, those Acts, as in force before that day, continue to apply in relation to any days that occur before the commencement day.

Part 3 Contingent amendments

Division 1—Amendments contingent on the commencement of the Budget Savings (Omnibus) Act 2016

A New Tax System (Family Assistance) Act 1999

23  Subsection 3(1) (subparagraph (b)(i) of the definition of receiving )

Omit “clause 38L”, substitute “clauses 1 and 38L”.

24  Application of amendments

The amendments of the definition of receiving in subsection 3(1) of the A New Tax System (Family Assistance) Act 1999 made by this Division apply in relation to working out the rate of family tax benefit for days on or after the commencement of this item.

Division 2—Amendments commencing 1 July 2018

A New Tax System (Family Assistance) Act 1999

25  Paragraph 6(1)(b)

Repeal the paragraph, substitute:

                     (b)  the adult’s FTB child rate in relation to the child is reduced under subclause 7(2) or (3) or 26(3) or (4) of Schedule 1 (see sections 61A and 61B).

26  Application of amendments

(1)       The amendments of the A New Tax System (Family Assistance) Act 1999 made by this Division apply in relation to the day (the commencement day ) this item commences and later days.

(2)       However, despite the amendments of that Act made by this Division, that Act, as in force before that day, continues to apply in relation to any days that occur before the commencement day.

Division 3—Amendments commencing later

A New Tax System (Family Assistance) Act 1999

27  At the end of subsection 6(1)

Add:

               ; or (c)  whether the adult’s FTB child rate in relation to the child is reduced under subclause 7(2) or (3) or 26(3) or (4) of Schedule 1 (see sections 61A and 61B).

28  Application of amendments

(1)       The amendments of the A New Tax System (Family Assistance) Act 1999 made by this Division apply in relation to the day (the commencement day ) this item commences and later days.

(2)       However, despite the amendments of that Act made by this Division, that Act, as in force before that day, continues to apply in relation to any days that occur before the commencement day.

(212/17)