Commonwealth of Australia Explanatory Memoranda

[Index] [Search] [Download] [Bill] [Help]

A NEW TAX SYSTEM (FAMILY ASSISTANCE AND RELATED MEASURES) BILL 2000

1998-1999-2000

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

HOUSE OF REPRESENTATIVES

A NEW TAX SYSTEM (FAMILY ASSISTANCE
AND RELATED MEASURES) BILL 2000

SUPPLEMENTARY EXPLANATORY MEMORANDUM

Amendment to be moved on behalf of the Government

(Circulated by authority of the Minister for Family and Community Services,
Senator the Hon Jocelyn Newman)

ISBN: 0642 430640

A NEW TAX SYSTEM (FAMILY ASSISTANCE
AND RELATED MEASURES) BILL 2000

Amendment to be moved on behalf of the Government

OUTLINE AND FINANCIAL IMPACT STATEMENT

The amendment affects the child care benefit income test. The amendment ensures that an individual’s taxable income % for a session of care provided to a child in an income year is 100% if the individual or the individual’s partner is receiving an income support supplement under Part IIIA of the Veterans’ Entitlements Act 1986.

This is consistent with an amendment made by this Bill to the income testing arrangements for family tax benefit.

There are no additional program costs from this measure as the costs are absorbed within the base funding for child care benefit.

NOTES ON AMENDMENT

Clause 7 of Schedule 2 to the A New Tax System (Family Assistance) Act 1999 (the Family Assistance Act) provides the method of calculating an individual’s taxable income %. This concept is essentially the child care benefit income test. If an individual’s taxable income % is 100%, the individual is effectively not subject to the child care benefit income test.

Clause 7 currently provides that an individual’s taxable income % for a session of care provided to a child in an income year is 100% if the individual or the individual’s partner is receiving a social security pension, a social security benefit or a service pension.

An income support supplement (available under Part IIIA of the Veterans’ Entitlements Act 1986) is subject to the same income test as social security pensions. Amendment 1 therefore amends clause 7 to ensure that an individual is not subject to the child care benefit income test if the individual or the individual’s partner is receiving such a supplement.

This amendment is consistent with the amendment made by item 32 of Part 1 of Schedule 1 to this Bill in relation to income testing arrangements for family tax benefit.

[Index] [Search] [Download] [Bill] [Help]