Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2010-2011-2012-2013
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
FAMILY ASSISTANCE AND OTHER LEGISLATION AMENDMENT
BILL 2013
REVISED EXPLANATORY MEMORANDUM
(Circulated by the authority of the
Minister for Families, Community Services and Indigenous Affairs,
Minister for Disability Reform, the Hon Jenny Macklin MP)
THIS EXPLANATORY MEMORANDUM TAKES ACCOUNT OF
AMENDMENTS MADE BY THE HOUSE OF REPRESENTATIVES TO THE
BILL AS INTRODUCED
FAMILY ASSISTANCE AND OTHER LEGISLATION AMENDMENT
BILL 2013
OUTLINE
Reduction of baby bonus from 1 July 2013
This Bill implements the Government's changes to the baby bonus announced
in the 2012-13 Mid-Year Economic and Fiscal Outlook. These changes will
maintain support for new parents with the upfront costs of having a baby,
while ensuring the family payments system is sustainable into the future.
The amount of baby bonus for second and subsequent children who come
into a family from 1 July 2013 will be reduced to $3,000. The change will
generally apply regardless of whether the child is born into the family, adopted
by the family, or entrusted to the family's care within 26 weeks of birth
(for example, under a foster care arrangement). Baby bonus will continue to
be paid at the rate of $5,000 for a family's first child, and for each child who
comes into the family in a multiple birth, adoption or entrustment to care.
This change recognises that families generally do not face the same upfront
costs for a second or later child as they do for their first child, with the more
expensive items usually already purchased.
The saving from this measure will support the future sustainability of the family
payments system, which continues to deliver substantial assistance for low
and middle-income families - including through paid parental leave, dad and
partner pay, the schoolkids bonus and family tax benefit and child care
payments.
Family tax benefit and double orphan pension
This Bill also makes amendments to ensure families can continue to receive
family tax benefit until the end of the calendar year that the child finishes
secondary study or its equivalent. Additionally, the qualification period for
double orphan pension is being extended so that it aligns with eligibility for
family tax benefit. This means, for example, that a carer can continue to
receive double orphan pension for a young person in their care until the end
of the calendar year in which the young person turns 19 if they are still in
secondary study.
1
Replacement of baby bonus from 1 March 2014 - new family payment
arrangements for newborns
In a measure from the 2013 Budget package, A More Sustainable Family
Payments System, the baby bonus will no longer be available from
1 March 2014. In its place, families who are eligible for family tax benefit
Part A, and who are not accessing parental leave pay, will receive an
additional loading on their payments to help with the upfront costs of having a
new baby.
The extra family tax benefit Part A payment will deliver $2,000 for a family's
first child (and for each child in a multiple birth) and $1,000 for second and
subsequent children. It will be paid as an initial instalment of $500, with the
remainder rolled into normal fortnightly payments over a three-month period.
These new arrangements more closely reflect the essential upfront costs of
having a baby and better target assistance now that Australia has a national
Paid Parental Leave scheme.
This measure also makes changes to the work test under the Paid Parental
Leave scheme, making it easier for working mothers with children born close
together to qualify for parental leave pay for subsequent children.
Reducing the claim period for family assistance lump sum claims
In a second measure from the same Budget package, families choosing to
wait until the end of the financial year to claim their family tax benefit or child
care benefit entitlement will now have a grace period of one year instead of
two years in which to claim. This change will start for the 2012-13 entitlement
year, meaning families will have 12 months from the end of that year (until
30 June 2014) in which to claim their entitlement.
Families will also have one year in which to lodge their tax returns if they are
to receive the end-of-year family tax benefit supplements, and to meet
immunisation and health check requirements linked to the end-of-year family
tax benefit Part A supplement.
Families will be able to access extensions in special circumstances, similar to
arrangements for tax returns. The changes bring family payment claim
periods more into line with time limits for lodging tax returns before penalties
may be imposed, and with the policy intent of the family assistance program,
to assist parents with day-to-day costs of raising children.
Other amendments
This Bill also makes some clarifying and technical amendments to portfolio
legislation, consistent with intended policy.
2
Financial impact statement
MEASURE FINANCIAL IMPACT
Reduction of baby bonus from 1 July Saving of $687.5 million over five years.
2013
Replacement of baby bonus from Saving of $1.1 billion over five years.
1 March 2014 - new family payment
arrangements for newborns
Reducing the claim period for family Saving of $562 million over five years.
assistance lump sum claims
Remaining amendments Negligible financial impact.
STATEMENTS OF COMPATIBILITY WITH HUMAN RIGHTS
The statements of compatibility with human rights appear at the end of this
explanatory memorandum.
3
FAMILY ASSISTANCE AND OTHER LEGISLATION AMENDMENT
BILL 2013
NOTES ON CLAUSES
Abbreviations used in this explanatory memorandum
Family Assistance Act means the A New Tax System
(Family Assistance) Act 1999
Family Assistance Administration Act means the A New Tax
System (Family Assistance) (Administration) Act 1999
Paid Parental Leave Act means the Paid Parental Leave Act 2010
Social Security Act means the Social Security Act 1991
Social Security Administration Act means the Social Security
(Administration) Act 1999
Clause 1 sets out how the new Act is to be cited, that is, as the Family
Assistance and Other Legislation Amendment Act 2013.
Clause 2 provides a table that sets out the commencement dates of the
various sections in, and Schedules to, the new Act.
Clause 3 provides that each Act that is specified in a Schedule is amended or
repealed as set out in that Schedule.
1
Schedule 1 - Reduction of baby bonus from 1 July 2013
Summary
This Schedule implements the Government's changes to the baby bonus
announced in the 2012-13 Mid-Year Economic and Fiscal Outlook. These
changes will maintain support for new parents with the upfront costs of having
a baby, while ensuring the family payments system is sustainable into the
future.
The amount of baby bonus for second and subsequent children who come
into a family from 1 July 2013 will be reduced to $3,000. The change will
generally apply regardless of whether the child is born into the family, adopted
by the family, or entrusted to the family's care within 26 weeks of birth
(for example, under a foster care arrangement). Baby bonus will continue to
be paid at the rate of $5,000 for a family's first child, and for each child who
comes into the family in a multiple birth, adoption or entrustment to care.
This change recognises that families generally do not face the same upfront
costs for a second or later child as they do for their first child, with the more
expensive items usually already purchased.
Background
Baby bonus is paid to eligible individuals following the birth or adoption of a
child to assist with the upfront costs of having a child. Currently, baby bonus
is a payment of $5,000.
The amendments made by this Schedule commence on 1 July 2013, apart
from items 4 to 6 and item 9, which commence the day after Royal Assent.
Explanation of the changes
Amendments to the Family Assistance Act
Item 1 repeals and inserts a new section 66, which outlines the amount of
baby bonus that an individual is entitled to receive in respect of a child.
General rule
Subsection 66(1) provides for the general rule in relation to the amount of
baby bonus an individual is entitled to receive in respect of a child. If the
individual satisfies paragraph 66(1)(a), (b), (c) or (d), then the amount of baby
bonus is $5,000.
Otherwise, the amount of baby bonus is $3,000.
2
Schedule 1 - Reduction of baby bonus from 1 July 2013
New paragraph 66(1)(a) applies to an individual who is a parent of the child
and is eligible for baby bonus under subsection 36(2). If the child is the first
child born alive to the mother who gave birth to the child, the amount of baby
bonus is $5,000.
Example
A mother claims baby bonus for both the first and second children that
she gives birth to (the children were not born as part of a multiple birth).
A payment of $5,000 of baby bonus is made for the first child, and a
payment of $3,000 for the second child.
New paragraph 66(1)(b) applies to an individual who has a child entrusted to
the care of the individual or the individual's partner and is eligible for baby
bonus under subsection 36(3). If the child is the first child who becomes
entrusted to the care of the individual, which occurred at any time within the
period of 26 weeks starting on the day of the child's birth, the amount of baby
bonus is $5,000. Alternatively, if the individual is a member of a couple at any
time within the period of 26 weeks starting on the day of the child's birth and
the child becomes entrusted to the care of the individual's partner at that time,
the amount of baby bonus is $5,000.
Examples
A carer is eligible for baby bonus for a child entrusted to her or his care
under subsection 36(3) (for example, through a foster care
arrangement). The birth mother had care of the child until the child
was 10 weeks old, and then the carer took on care of the child,
intending to be the primary carer of the child for at least 26 weeks.
Both wish to claim baby bonus. In this situation, a pro-rated payment
of $5,000 of baby bonus is apportioned between the birth mother for
her first born child and the carer as this is the first child entrusted to her
or his care.
A child is born of a surrogacy arrangement between a surrogate
mother and a commissioning couple. The commissioning couple have
not taken on care of any other child of a surrogacy arrangement
previously. The child enters their care four weeks after birth, and the
individual who is the primary carer of the child receives an amount of
$5,000 for baby bonus.
New paragraph 66(1)(c) applies to an individual who has a stillborn child and
is eligible for baby bonus under subsection 36(4). If the child is the mother's
first stillborn child and the mother has not given birth to any other children
(including stillborn children), the amount of baby bonus is $5,000.
3
Schedule 1 - Reduction of baby bonus from 1 July 2013
Examples
A birth mother has a stillborn child and she receives an amount of
$5,000 for baby bonus.
A birth mother has a first live-born birth, followed by a stillbirth. In this
situation, the mother will be entitled to receive baby bonus amounts of
$5,000 and $3,000 respectively.
A birth mother who firstly has a stillborn child, followed by a first
live-born child, will receive $5,000 for the stillborn child and then
$5,000 again to assist with the upfront costs of raising her child.
New paragraph 66(1)(d) applies to an individual who has an adopted child
and is eligible for baby bonus under subsection 36(5). If the child is the first
child who becomes entrusted to the care of the individual or the individual's
partner as part of the process of adoption by an authorised party, and the
child is aged under 16 at the time, the amount of baby bonus is $5,000.
Examples
A couple adopts a child and has not adopted before. The adopting
father claims baby bonus and receives $5,000 for the child.
A couple adopts a second child. The adopting mother claims baby
bonus, and receives $3,000 as the couple had adopted a child
previously.
Multiple children cases
New subsection 66(2) provides for an exception to the general rule for
multiple children - for example, twins. Subsection 66(2) provides that the
amount of baby bonus for an individual in respect of each child born during
the same multiple birth is $5,000. This amount also applies to any stillborn
child born in a multiple birth.
New subsection 66(3) provides that, if an individual is eligible for baby bonus
under subsection 36(3) of the Family Assistance Act in respect of two or more
children who become entrusted to the care of the individual or the individual's
partner within 26 weeks of birth, as part of the same entrustment to care
process, the amount of baby bonus in respect of each child is $5,000.
For example, if twin babies become entrusted to the care of a foster mother,
the foster mother would be entitled to receive an amount of $5,000 in baby
bonus for each of the twin children.
4
Schedule 1 - Reduction of baby bonus from 1 July 2013
New subsection 66(4) provides that, if an individual is eligible for baby bonus
under subsection 36(5) as part of the process for adoption by an authorised
party, in respect of two or more children who become entrusted to the care of
the individual as part of the same adoption process, the amount of baby
bonus in respect of each child is $5,000. For example, if a couple adopted
two siblings as part of the same adoption process and the children are both
under 16 years of age, either member of the couple would be entitled to
receive an amount of $5,000 in baby bonus for each of the children.
Shared baby bonus
New subsection 66(5) provides clarification that, if the Secretary has
determined (under paragraph 37(3)(b)) the percentage that is to be an
individual's percentage of baby bonus in respect of a child, the amount of
baby bonus for the individual in respect of that child is that percentage of the
amount worked out under subsections 66(1) to (3).
Item 2 omits `subsection 66(1)' and substitutes `paragraphs 66(1)(a), (b), (c),
(d) and (e) and subsections 66(2), (3) and (4)' in table item 17AD of clause 2
of Schedule 4. This item is consequential to item 1, and makes reference to
the provisions in the Family Assistance Act that state the monetary amount of
baby bonus that is to be indexed and adjusted under Schedule 4.
Items 3, 3A and 3B amend subclause 3(9) of Schedule 4 and its heading,
and repeal the existing note to the subclause. These changes are to correct
existing references to indexation of the baby bonus, in light of the replacement
of the baby bonus with new family payment arrangements for newborns from
1 March 2014 - Schedule 2A to this Bill refers.
Amendments to the Family Assistance Administration Act
Claims for baby bonus - time limits
Item 4 omits `if it is made later than 52 weeks after', and substitutes `unless it
is made before the end of the period of 52 weeks beginning on' in
subsection 39(2). This amendment to wording clarifies the policy intent that a
baby bonus claim must be made within the period of 52 weeks beginning on
the day of the birth of the child or the day the child becomes entrusted to the
care of the claimant as part of the process for adoption.
Item 5 omits `the birth', and substitutes `the day of the birth' in
paragraph 39(2)(a). This amendment clarifies that the claim period for baby
bonus in relation to eligibility under any of subsections 36(2) to (4) of the
Family Assistance Act begins on the day of the birth of the child.
Item 6 omits `the time', and substitutes `the day' in paragraph 39(2)(b).
This amendment clarifies that the claim period for baby bonus in relation to
eligibility under subsection 36(5) of the Family Assistance Act begins on the
day the child becomes entrusted to the care of the claimant as part of the
process for adoption.
5
Schedule 1 - Reduction of baby bonus from 1 July 2013
`Upfront part' of baby bonus
Item 7 repeals paragraphs 47(2A)(b) and (c) and substitutes new
paragraphs 47(2A)(b) to (f), which make amendments to the `upfront part' of
the baby bonus so that the baby bonus amount for second and subsequent
children will remain at $3,000 until 1 July 2015, at which time it will be indexed
in line with Consumer Price Index increases.
New paragraph 47(2A)(b) provides that, if the claimant becomes eligible for
baby bonus between 1 September 2012 and 30 June 2013, the upfront part of
baby bonus is $846.20.
New paragraph 47(2A)(c) provides that, if the claimant becomes eligible for
baby bonus between 1 July 2013 and 30 June 2015 and the amount of baby
bonus is the amount applicable under paragraph 66(1)(a), (b), (c) or (d), or
subsection 66(2), (3) or (4), of the Family Assistance Act, the upfront part of
baby bonus is $846.20.
New paragraph 47(2A)(d) provides that, if the claimant becomes eligible for
baby bonus between 1 July 2013 and 30 June 2015 and the amount of baby
bonus is the amount applicable under paragraph 66(1)(e) of the Family
Assistance Act, the upfront part of baby bonus is $692.40.
New paragraph 47(2A)(e) provides that, if the claimant becomes eligible for
baby bonus on or after 1 July 2015 and the amount of baby bonus is the
amount applicable under paragraph 66(1)(a), (b), (c) or (d), or
subsection 66(2), (3) or (4), of the Family Assistance Act, the amount of the
upfront part of baby bonus is worked out using the formula in this paragraph -
that is, 16.92 per cent multiplied by the amount of baby bonus the claimant is
entitled to.
New paragraph 47(2A)(f) provides that, if the claimant becomes eligible for
baby bonus on or after 1 July 2015 and the amount of baby bonus is the
amount applicable under paragraph 66(1)(e) of the Family Assistance Act, the
amount of the upfront part of baby bonus is worked out using the formula in
this paragraph - that is, 23.08 per cent multiplied by the amount of baby
bonus the claimant is entitled to.
Item 8 is an application provision. It provides that the amendments made by
item 1 apply in relation to individuals who become eligible for baby bonus on
or after 1 July 2013.
Item 9 is an application provision. It provides that the amendments made by
items 4 to 6 apply in relation to claims for payment of baby bonus that are
made on or after the commencement of those items - that is, the day this Act
receives the Royal Assent.
6
Schedule 1 - Reduction of baby bonus from 1 July 2013
Amendments to the Family Assistance and Other Legislation
Amendment Act 2012
Item 11 repeals item 6 of Schedule 2 to the Family Assistance and Other
Legislation Amendment Act 2012, which is a transitional provision applying to
the indexed amount for baby bonus on 1 July 2015. That transitional
provision is no longer necessary, in light of the replacement of the baby bonus
with new family payment arrangements for newborns from 1 March 2014 -
Schedule 2A to this Bill refers.
7
Schedule 2 - Family tax benefit and double orphan pension
Summary
This Schedule makes amendments to ensure families can continue to receive
family tax benefit until the end of the calendar year that the child finishes
secondary study or its equivalent. Additionally, the qualification period for
double orphan pension is being extended so that it aligns with eligibility for
family tax benefit. This means, for example, that a carer can continue to
receive double orphan pension for a young person in their care until the end
of the calendar year in which the young person turns 19 if they are still in
secondary study.
Background
Currently, under subsection 22B(3) of the Family Assistance Act, a child
continues to be a senior secondary school child until 31 December, if the
day the child completes the final year of secondary school or equivalent level
of education is in December of that calendar year. If the day of completion is
before December, the child continues to be a senior secondary school child
for a period of 28 days after completion. This allows for continued eligibility
for family tax benefit until the end of the calendar year for a child who
completes secondary school in December, or for a period of 28 days if the
child completes school before December.
This Schedule amends the Family Assistance Act so that eligibility for family
tax benefit will continue until the end of the calendar year for a child who
completes secondary school in either November or December of that year.
The amendments confirm access to family tax benefit until the end of the
calendar year for students who complete secondary study in the usual way -
for example, by sitting final examinations. The amendments also ensure
continued family tax benefit eligibility for a child for a period of 28 days after
completion if the child completes secondary school before November.
This Schedule also amends the definition of young person in subsection 5(1)
of the Social Security Act to extend the double orphan pension qualification
period for students completing study by aligning it with the family tax benefit
eligibility period.
The amendments in items 1 to 5 of this Schedule commence on
1 January 2012 and those in items 6 and 7 commence on 1 January 2013.
8
Schedule 2 - Family tax benefit and double orphan pension
Explanation of the changes
Amendments to the Family Assistance Act
Item 1 inserts `November or' after `is in' in paragraph 22B(3)(a), so that
extended eligibility for family tax benefit for a child until 31 December would
apply for those completing the final year of secondary school or equivalent in
November, as well as for those completing in December, of a calendar year.
Item 2 omits `December' and substitutes `November' in paragraph 22B(3)(b).
This amendment allows a child who completes the final year of secondary
school or equivalent before November to continue to be a senior secondary
school child for a period of 28 days after completion.
Item 3 is an application provision for items 1 and 2. The amendments made
by items 1 and 2 apply in relation to working out whether an individual is a
senior secondary school child for days on or after 1 January 2012.
The retrospective commencement of this item is beneficial, and aligns with the
commencement of the policy under the Supporting Families with Teenagers
2010 election commitment, which was implemented on 1 January 2012.
Amendments to the Social Security Act
Item 4 repeals the definition of young person in subsection 5(1) and
substitutes a new definition. Item 5 provides that this new definition applies
for double orphan pension qualification for days on or after 1 January 2012,
in line with the changes made by item 3.
Under the new definition, a young person (except in Part 2.20, relating to
double orphan pension, of the Social Security Act) has the meaning given by
subsection 5(1B) (that is, the person is under 16 years of age or is a student
child) - so, for all purposes other than those of Part 2.20, the definition has
not changed. However, in Part 2.20 (relating to double orphan pension),
a young person means a person who:
is under 16 years of age; or
has reached 16, but is under 22, years of age and is studying full-time;
or
has reached 16 years of age and is a senior secondary school child
under the Family Assistance Act.
The changes to the definition allow a young person to qualify for double
orphan pension for a period after completing study (in line with the
amendments made by items 1 and 2).
9
Schedule 2 - Family tax benefit and double orphan pension
Item 6 repeals paragraph (b) of the definition of young person in
subsection 5(1) (inserted by item 4 above) and substitutes a new
paragraph (b). Item 7 provides that this new definition applies for double
orphan pension qualification for days on or after 1 January 2013.
New paragraph 5(1)(b) provides that, in Part 2.20 of the Social Security Act,
a young person means a person who is under 20 years of age. This allows
child age qualification for double orphan pension to be fully aligned with child
age eligibility for family tax benefit.
10
Schedule 2A - Replacement of baby bonus from 1 March 2014
Summary
From 1 March 2014, the baby bonus will no longer be available. In its place,
families who are eligible for family tax benefit Part A, and who are not
accessing parental leave pay, will receive an additional loading on their
payments to help with the upfront costs of having a new baby.
The extra family tax benefit Part A payment will deliver $2,000 for a family's
first child (and for each child in a multiple birth) and $1,000 for second and
subsequent children. It will be paid as an initial instalment of $500, with the
remainder rolled into normal fortnightly payments over a three-month period.
These new arrangements more closely reflect the essential upfront costs of
having a baby and better target assistance now that Australia has a national
Paid Parental Leave scheme.
This measure also makes changes to the work test under the Paid Parental
Leave scheme, making it easier for working mothers with children born close
together to qualify for parental leave pay for subsequent children.
Background
Replacement of baby bonus
Under current legislative arrangements, baby bonus is available to families
following the birth (including stillbirth), entrustment to care or adoption
placement of a child.
The current baby bonus rate is $5,000 per eligible child, paid in 13 fortnightly
instalments, and is limited to families whose estimated combined adjusted
taxable income is $75,000 or less in the six months following the birth of the
child or the child's entry into the family's primary care. From 1 July 2013,
amendments in Schedule 1 to this Bill will reduce the rate for second and
subsequent children to $3,000.
From 1 March 2014, baby bonus will be abolished and replaced with an
increase to family tax benefit and a separate stillborn baby payment.
The change to family tax benefit will involve an increase to the family tax
benefit Part A rate for a 13-week period, with a newborn supplement
component included in both the maximum rate (clause 3 of Schedule 1 to the
Family Assistance Act), and the base rate (clause 25 of Schedule 1 to that
Act). This will apply to parents, to families entrusted with the care of a child
(for example, foster carers), and to adopting parents.
There will also be a `newborn upfront amount' of $500, if eligibility for the
newborn supplement is established, so that part of the new assistance is
delivered as an upfront lump sum.
11
Schedule 2A - Replacement of baby bonus from 1 March 2014
Additionally, there will be a separate stillborn baby payment.
Counting previous PPL period etc. for work test
The Paid Parental Leave scheme commenced on 1 January 2011,
and provides eligible primary carers (usually the mother) of children born or
adopted from 1 January 2011 with up to 18 weeks' parental leave pay at the
rate of the national minimum wage. The Paid Parental Leave scheme was
extended to introduce a new payment, called dad and partner pay, for eligible
fathers and partners, including adopting parents and parents in same-sex
couples, who are caring for a child born or adopted from 1 January 2013.
Under the current rules, to be eligible for parental leave pay or dad and
partner pay, a person needs to satisfy a number of different criteria, including
the work test.
In the case of parental leave pay, the work test applies by reference to work
undertaken in the work test period, which is the 392 days prior to the day the
claimant becomes the primary carer of the child (in most cases, upon birth of
the child for the birth mother). The test operates similarly for dad and partner
pay, where it applies by reference to work performed prior to the DAPP
period. The work test requires a person to have performed at least 330 hours
of qualifying work during a qualifying period of 295 consecutive days in the
392 days, with no more than a 56-day gap between two working days.
An exception to the work test applies where a person would have met the
work test but for a premature birth or pregnancy-related complication or
illness.
In some cases, where there is short birth spacing between children,
or children enter a family close together, it may be difficult for a person to
satisfy the work test for a subsequent child. For example, a primary claimant
may have claimed and received parental leave pay for a previous child,
and will have a PPL period of up to 18 weeks during which they cannot
engage in paid work under eligibility criteria. A previous PPL period that
occurs in the work test period for a new claim cannot currently contribute to
the work test for a new claim for a second or subsequent child.
These measures address this issue by allowing a person to count a day in
their previous PPL period and/or DAPP period towards satisfying the work test
for a new claim.
These amendments apply to PPL periods and DAPP periods taken for a
previous child. Sections 36B and 115CF of the Paid Parental Leave Act
already allow a person to satisfy the work test if they are already eligible for
parental leave pay or dad and partner pay for that same child.
The amendments made by Schedule 2A generally commence on
1 March 2014.
12
Schedule 2A - Replacement of baby bonus from 1 March 2014
Explanation of the changes
Part 1 - Newborn supplement for Part A rate of family tax benefit
Amendments to the Family Assistance Act
Newborn upfront payment
Item 2 inserts a new section 58AA into the Family Assistance Act. This new
provision sets out the circumstances in which an individual is entitled to a
newborn upfront payment of family tax benefit in respect of an FTB child and
the circumstances in which the payment cannot be paid.
New subsection 58AA(1) provides that an individual is entitled to be paid, as
family tax benefit, an amount of $500 in respect of an FTB child if an amount
of newborn supplement in respect of that child is added in working out their
rate of family tax benefit Part A.
A note at the end of this provision refers to the reader to new section 24A,
which provides that this $500 amount - the `newborn upfront payment' - is to
be paid as a single lump sum.
However, two members of the same couple cannot each receive the newborn
upfront payment in respect of the same FTB child (new subsection 58AA(2)
refers).
New subsection 58AA(3) enables the Minister to prescribe, by legislative
instrument, other circumstances in which the newborn upfront payment
cannot be paid. The instrument would be made under new
subclause 35A(12) of Schedule 1 to the Family Assistance Act (as inserted by
item 6).
New subsection 58AA(4) makes it clear that an individual cannot receive more
than one newborn upfront payment of family tax benefit in respect of an
FTB child.
Item 1 makes a consequential change by including the new $500 payment in
the definition of family tax benefit.
Newborn supplement
The method statement in clause 3 of Schedule 1 to the Family Assistance Act
sets out the method for calculating an individual's maximum Part A rate.
Item 3 ensures that the individual's newborn supplement is included as a
component of their maximum rate.
Item 4 includes the newborn supplement as another relevant amount in the
method statement in clause 24N, which is then used for the purposes of
working out an individual's maintenance income ceiling for income received
by the individual or their partner in relation to child support.
13
Schedule 2A - Replacement of baby bonus from 1 March 2014
The method statement in clause 25 of Schedule 1 to the Family Assistance
Act sets out the method for calculating an individual's Part A base rate.
Item 5 ensures that the individual's newborn supplement is included as a
component in the calculation of their base rate.
Item 6 inserts a new Division 1A into Part 5 of Schedule 5. This new Division
sets out the circumstances in which an amount of newborn supplement is to
be added in working out an individual's Part A rate (new clause 35A) and how
to calculate an individual's annual amount of newborn supplement
(new clause 35B).
New clause 35A deals with eligibility for the newborn supplement.
New subclause 35A(1) provides that an amount of newborn supplement is to
be added for a day in working out an individual's Part A rate, if the individual is
eligible for the newborn supplement on that day. The maximum period of
eligibility would be 13 weeks.
There are three broad eligibility categories - parent, child entrusted to care
and adoption.
Parent of child
New subclause 35A(2) sets out the conditions that need to be satisfied for a
parent to be eligible for the newborn supplement.
An individual would be eligible for the newborn supplement for a day in
respect of their FTB child if, on that day, the individual or their partner is a
parent of the child, the child is aged less than one and the individual's Part A
rate (including the newborn supplement but disregarding specified
deductions) would be greater than nil. The day would also need to occur
within a period of 13 weeks after these conditions are first met and before the
child's first birthday.
Generally an individual would become eligible for the newborn supplement in
the 13-week period following the child's birth. However, an individual who is
ineligible for the newborn supplement in the income year in which the child is
born (because their Part A rate is nil due to income) may become eligible for
the newborn supplement in the next income year (if their Part A rate then
exceeds nil because their income is lower). Eligibility would cease upon the
child turning one, even where the 13-week period has not yet ended.
Finally, if the individual is responsible for registering the child's birth under the
law of a State or Territory, the Secretary must be notified, or become aware,
within a certain time limit, that the birth registration requirement has been
met.
The birth registration requirement, as set out in new subclause 35A(3), is that
the birth of the child has been registered in accordance with the relevant law
or that the individual or their partner has applied to register the birth.
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Schedule 2A - Replacement of baby bonus from 1 March 2014
The time limit for registration of the birth would generally be the end of the first
income year after the income year that includes the last day on which the
newborn supplement could be paid for the child. For example, if the last day
the newborn supplement could be paid for the child was 10 July 2014,
the time limit for a parent to advise of birth registration and still be eligible for
the newborn supplement would generally be 30 June 2016. This time limit
coincides with the time limit for a past period claim. However, if the Secretary
grants the individual a special circumstances extension for lodging an family
tax benefit claim in relation to the child and the relevant income year,
the Secretary would also be able to extend the time limit for meeting the birth
registration requirement, but to no later than the end of the second income
year following the income year in which the `last day' occurs
(new subclause 35A(4) refers).
Child entrusted to care
New subclause 35A(5) sets out the conditions that need to be satisfied for an
individual to be eligible for the newborn supplement under the child entrusted
to care category of eligibility.
An individual would be eligible for the newborn supplement for a day in
respect of their FTB child if, on that day, neither the individual or their partner
is a parent of the child but the child has been entrusted to the care of the
individual or their partner, the child is aged less than one and the individual's
Part A rate (including the newborn supplement but disregarding specified
deductions) would be greater than nil. The day would also need to occur
within a period of 13 weeks after these conditions are first met and before the
child's first birthday.
However, the individual would not be eligible for any amount of newborn
supplement if the child is not in their care for a period of at least 13 weeks
(new subclause 35A(6) refers).
Adoption
New subclause 35A(7) sets out the conditions that need to be satisfied for an
adoptive parent to be eligible for the newborn supplement.
An individual would be eligible for the newborn supplement for a day in
respect of their FTB child if, on or before that day, the child became entrusted
to the care of the individual or their partner by an authorised party as part of
the process of adoption and the individual's Part A rate (including the newborn
supplement, but disregarding specified deductions) would be greater than nil
on the day. The day would also need to occur within a period of 13 weeks
after these conditions are first met and before the end of the period of
12 months beginning on the day that the child became entrusted to the care of
the individual or their partner.
For adoptive parents, there is no age limit for children to attract the newborn
supplement, apart from the FTB child age limit.
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Schedule 2A - Replacement of baby bonus from 1 March 2014
The situations in which an individual cannot be eligible for the newborn
supplement are set out in new subclauses 35A(8), (9) and (10).
New subclause 35A(8) ensures that an individual cannot be eligible for a
newborn supplement in respect of their FTB child if parental leave pay is
payable at any time to the individual for that child.
New subclause 35A(9) ensures that an individual cannot be eligible for a
newborn supplement in respect of their FTB child if parental leave pay in
respect of that child is payable to another person who was their partner for at
least 13 weeks of the person's PPL period or, if the person's PPL period was
less than 13 weeks, the whole of the PPL period.
New subclause 35A(10) ensures that the partner of an individual who has
been paid the newborn supplement in respect of an FTB child for 13 weeks
cannot also be eligible for the newborn supplement in respect of that child.
New subclauses 35A(11) and (12) enable the Minister, by legislative
instrument, to prescribe circumstances in which an amount of newborn
supplement is not to be added for one or more days in relation to an individual
and an FTB child. The instrument can also prescribe circumstances in which
the related newborn upfront payment of family tax benefit (under
section 58AA) cannot be added. The circumstances prescribed in the
instrument in relation to the individual and their FTB child must relate to
payability of parental leave pay, or the addition of a newborn supplement to
another individual for the same child, or the individual being a member of a
couple or a former member of a couple (new subclause 35A(13) refers).
The instrument may deal with situations where an individual is eligible for the
newborn supplement for less than 13 weeks, because they were partnered to
another person who was paid either parental leave pay or newborn
supplement for the child but separated from that other person before they
received the full benefit of the other payment.
In clause 35A, a parent includes a relationship parent (new
subclause 35A(14) refers).
New clause 35B sets out the annualised rate of newborn supplement for a
first or subsequent child, and in situations of multiple birth or where two or
more children are entrusted to care as part of the same process.
The annualised amount of newborn supplement for a parent in respect of an
FTB child who is the first child born alive to the woman who gave birth is the
amount worked out using the formula:
$1,501.50 x 365/91
The annualised amount of newborn supplement is the same for an individual
who is eligible under the entrusted to care and adoption categories where the
child is the first child that is entrusted to the care of the individual or their
partner.
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Schedule 2A - Replacement of baby bonus from 1 March 2014
The amount of $1,501.50 is the total amount of newborn supplement that can
be added in respect of a first child in working out the individual's maximum
rate or base rate for the 13-week maximum period of eligibility.
This amount of newborn supplement would also apply where two or more
children are born during the same multiple birth, or where two or more
children become entrusted to the care of an individual or their partner as part
of the same entrustment to care process or adoption process.
Otherwise, the amount of newborn supplement for an individual in respect of
an FTB child who is not a first child born or entrusted to the care of a family is
worked out using the formula:
$500.50 x 365/91
The amount of $500.50 is the total amount of newborn supplement that can
be added in respect of a child who is not a first child in working out the
individual's maximum rate or base rate for the 13-week maximum period of
eligibility.
The note at the end of new subclause 35B(1) explains that the formula
annualises the newborn supplement because it forms part of the process of
working out an individual's annual rate of family tax benefit. The rate of family
tax benefit for a day is the annual rate divided by 365 (see section 58 of the
Family Assistance Act). That daily rate will only include the newborn
supplement for a maximum period of 13 weeks.
Indexation
Clause 2 of Schedule 4 to the Family Assistance Act lists the amounts to be
indexed or adjusted and provides an abbreviation for easy reference.
The abbreviation is then used in clause 3, which sets out how certain amounts
are to be indexed in accordance with the Consumer Price Index.
Item 7 inserts references to the newborn supplement and newborn upfront
payment into clause 2, and indicates where the relevant amounts are located.
Item 8 then provides for indexation of these amounts on 1 July in accordance
with the Consumer Price Index.
Under subclause 3(7) of Schedule 4, specified amounts, including the baby
bonus income limit, are not indexed on 1 July of the years 2009 to 2013.
Item 9 makes a consequential amendment to remove the reference to the
baby bonus income limit from subclause 3(7). Because this change
commences on 1 March 2014, the existing provision will ensure that the baby
bonus income limit is not indexed on 1 July 2013.
Subclause 3(9) provides that baby bonus is not to be indexed on 1 July of
2012, 2013 or 2014. As this provision is repealed by item 10 from
1 March 2014, baby bonus will not be indexed on 1 July 2013.
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Schedule 2A - Replacement of baby bonus from 1 March 2014
Item 10 also inserts a new subclause 3(9), which ensures that the first
indexation of the newborn supplement and newborn upfront payment will be
1 July 2014.
Amendments to the Family Assistance Administration Act
As a general rule, the only way that a person can become entitled to be paid
family tax benefit is to make a claim. Item 12 amends section 5 of the Family
Assistance Administration Act so that a claim is not required for a person to
be paid the newborn upfront payment of family tax benefit, which can occur
automatically upon the person becoming eligible for the newborn supplement.
Item 11 makes a technical consequential amendment.
Item 13 changes the heading to section 24 so that it reflects the subject
matter dealt with by the provision.
Item 14 inserts new section 24A, which provides that the newborn upfront
payment of family tax benefit is to be paid as a single lump sum at such time
and in such manner as the Secretary considers appropriate. Payment of the
newborn upfront payment would be subject to rules which prevent payment of
family tax benefit on the basis of an estimate where relevant tax returns have
not been lodged, and also subject to nominee arrangements and tax-related
reductions.
Item 15 inserts a reference to family tax benefit under new section 58AA
(the newborn upfront payment) into the definition of relevant benefit in
section 219TA of the Family Assistance Administration Act. The effect is that
the newborn upfront payment can be paid to a person's nominee if a nominee
arrangement is in place.
Part 2 - Stillborn baby payment
Amendments to the Family Assistance Act
Items 16 to 19 amend definitions in subsection 3(1) of the Family Assistance
Act. These changes are consequential to the repeal of baby bonus and
introduction of a new payment, the stillborn baby payment.
Item 20 inserts a new definition of stillborn baby payment.
Item 21 repeals Division 2 of Part 3 of the Family Assistance Act, which
related to eligibility for baby bonus. A new Division 2 is substituted, which
sets out the eligibility criteria for the stillborn baby payment.
The eligibility criteria for the stillborn baby payment reflect the criteria that
applied for an individual to be eligible for baby bonus in respect of a stillborn
child, with some changes to the income test requirements to reflect other
changes in this Schedule related to family tax benefit.
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Schedule 2A - Replacement of baby bonus from 1 March 2014
Where an individual has given birth to a stillborn child and the individual is
already eligible for family tax benefit (in respect of another child or other
children) on the day of delivery, or becomes eligible for family tax benefit
within 52 weeks beginning on the day of the child's delivery, the individual
meets the income test for the stillborn baby payment. Otherwise, to meet the
income test, the individual's and their partner's income for the period of six
months beginning on the day of the child's delivery must be less than or equal
to $60,000. Items 25, 26 and 27 provide for the income limit of $60,000 to be
indexed from 1 July 2017, consistent with the recommencement of indexation
of other income limits.
New subsection 36(4) provides how the stillborn baby payment interacts with
parental leave pay. It prevents an individual being eligible for the stillborn
baby payment if parental leave pay is payable to the individual, or the
individual's partner, for the child.
Item 22 repeals Division 2 of Part 4 of the Family Assistance Act, which
provided for the amount of baby bonus for an individual. A new Division 2 is
substituted, which sets out the amount of stillborn baby payment for an
individual.
The amount of stillborn baby payment is the sum of the amounts of the
newborn supplement and newborn upfront amount defined earlier in the
Schedule.
Item 24 repeals subsection 85(2), referring to baby bonus. Item 23 is
consequential to item 24.
Amendments to the Family Assistance Administration Act
Items 28 to 30 amend definitions in subsection 3(1) of the Family Assistance
Administration Act. These changes are consequential to the repeal of baby
bonus and introduction of a new payment, the stillborn baby payment.
Items 31 to 40 amend Division 3 of Part 3 of the Family Assistance
Administration Act. The amended Division 3 will provide for the making of
claims in relation to the stillborn baby payment, the determination of those
claims, and payment of the stillborn baby payment where an individual is
determined to be entitled. These provisions broadly reflect the provisions that
currently apply to a claim for baby bonus in respect of a stillborn child.
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Schedule 2A - Replacement of baby bonus from 1 March 2014
Item 41 to 44 remove various references to baby bonus and substitute
references to the stillborn baby payment. Item 41 amends subsection 66(1)
of the Family Assistance Administration Act, which provides for the
inalienability of payments. Item 42 amends subsection 71(1), which allows a
debt to be raised where a payment is made and the individual was not entitled
to that payment. Item 43 amends subsection 93A(6) of the Family Assistance
Administration Act, which defines the family assistance payments that can
be recovered under section 93A from financial institutions. Item 44 amends
the definition of relevant benefit in section 219TA of the Family Assistance
Administration Act, which applies to Part 8B of the Family Assistance
Administration Act, relating to nominees.
Amendments to the Income Tax Assessment Act 1997
Items 45 to 47 are consequential amendments to the Income Tax
Assessment Act 1997, resulting from the repeal of baby bonus and the
introduction of the stillborn baby payment. The amendments will preserve the
current tax-exempt status of the baby bonus when replaced by the new
stillborn baby payment.
Amendments to the Paid Parental Leave Act 2010
Items 48 to 52 remove references to baby bonus from the Paid Parental
Leave Act. These amendments are consequential amendments to the repeal
of baby bonus. The interaction between the newborn supplement, newborn
upfront amount and stillborn baby payment, which replace the baby bonus,
has been described in Parts 1 and 2 above.
Amendments to the Social Security (Administration) Act 1999
Items 53 to 61 are consequential amendments to the income management
provisions in the Social Security (Administration) Act 1999, resulting from the
repeal of baby bonus and introduction of the stillborn baby payment.
Consistent with the treatment of the baby bonus, the stillborn baby payment
will be fully income managed where appropriate.
Part 3 - Counting previous PPL period etc. for work test
Amendments to the Paid Parental Leave Act
Items 62 and 66 amend the guides contained in sections 30 and 115CA of
the Paid Parental Leave Act to highlight the availability of the new measures.
Item 63 is consequential to item 65.
Items 64 and 65 make the substantive amendments to the Paid Parental
Leave Act.
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Schedule 2A - Replacement of baby bonus from 1 March 2014
Item 64 repeals subsection 34(1) and substitutes a new subsection, which
provides that a person performs qualifying work on a day if at least one of the
following applies on the day:
(a) the person performs at least one hour of paid work;
(b) the person takes a period of paid leave of at least one hour;
(c) the day is in the person's PPL period for a previous child;
(d) the day is in the person's DAPP period for a previous child.
Paragraphs 34(1)(a) and (b) reflect the existing rules. Paragraphs 34(1)(c)
and (d) are new rules, clarifying that a person performs qualifying work on a
day if the day is in a person's previous PPL period or DAPP period.
Item 65 inserts a new section 35A into the Paid Parental Leave Act.
New subsection 35A(1) applies if the person does not perform paid work or
take paid leave in their PPL period or DAPP period for a pervious child.
In these circumstances, the person is taken to have performed on that day:
7.6 hours of work, if the day is a week day; and
no hours of work, if the day is a Saturday or Sunday.
New subsection 35A(2) applies where the person has performed at least one
hour of paid work on a day in the person's PPL period or DAPP period for a
previous child. This will apply where a person takes parental leave pay or dad
and partner pay at the same time as performing work for a permissible
purpose. In these circumstances, the person is taken to have performed on
that day the greater of:
the hours of work the person would be taken to have performed if
subsection (1) applied; and
the number of hours of paid work performed by the person on that day.
For example, a person may have performed two hours of paid work for a
permissible purpose on a day in their PPL period. In these circumstances,
the person will be taken to have performed 7.6 hours of qualifying work.
The note to subsection 35A(2) clarifies that paid work for a permissible
purpose (such as a keeping in touch day) could be performed during a
person's PPL period or DAPP period for a previous child.
New subsection 35A(3) is similar to subsection 35A(2), but applies where a
person has taken paid leave of at least one hour on a day that falls in the
person's PPL period or DAPP period for a previous child. This will apply
where a person takes parental leave pay or dad and partner pay at the same
time as receiving paid leave from their employer. In these circumstances, a
person is taken to have performed on that day the greater of:
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Schedule 2A - Replacement of baby bonus from 1 March 2014
the hours of work the person would be taken to have performed if
subsection (1) applied; and
the number of hours of paid leave taken by the person on that day.
For example, a person may be taking eight hours' leave at half pay, thereby
using four hours of paid leave on a day in their PPL period. In these
circumstances, the person will be taken to have performed 7.6 hours of
qualifying work on that day.
Part 4 - Application and transitional provisions
Item 67 sets out the application and transitional provisions for Parts 1 and 2 of
this Schedule.
Subitem 67(1) saves the provisions in the Family Assistance Act and the
Family Assistance Administration Act on and after commencement to the
extent they relate to baby bonus for children who were born or stillborn before
1 March 2014, or entrusted to care as part of an adoption process before
1 March 2014.
Subitems 67(2), (3) and (4) provide for eligibility for the newborn supplement
in relation to children who were born on or after 1 March 2014, or entrusted to
care as part of an adoption process on or after 1 March 2014.
Subitem 67(5) is included to avoid doubt. It makes clear that, in determining
whether a child is the first child born alive to a woman, children born alive to
the woman at any time (including before commencement of these
amendments) are taken into account.
Subitem 67(6) is included to avoid doubt. It makes clear that, in determining
whether a child is the first child entrusted to the care of an individual, or the
partner of an individual, children entrusted to the care of the individual or their
partner at any time (including before commencement of these amendments)
are taken into account.
Subitem 67(7) provides that paragraph 36(1)(a) of the Family Assistance Act,
which contains the eligibility criteria for the stillborn child payment, applies in
relation to a child born as a stillborn child on or after 1 March 2014.
Subitem 67(8) is included to avoid doubt. It makes clear that, in determining
whether a child is the first stillborn child of a woman, any previous stillborn
child of the woman (including a stillborn child born before commencement of
these amendments) is taken into account.
Subitem 67(9) provides for the continued application of section 52-150 of the
Income Tax Assessment Act 1997 in respect of any payments of baby bonus
made, including payments made after commencement of these amendments.
Baby bonus could be paid after commencement in circumstances provided by
subitem 67(1).
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Schedule 2A - Replacement of baby bonus from 1 March 2014
Subitem 67(10) provides for the continued income management of baby
bonus payments on and after commencement of these amendments. This
includes income management of any baby bonus paid after commencement.
Baby bonus could be paid after commencement in circumstances provided by
subitem 67(1).
Subitem 67(11) preserves current rules that prevent an individual becoming
eligible for parental leave pay where they are entitled to baby bonus. Despite
the repeal of baby bonus, entitlement to baby bonus could still be relevant for
determination of parental leave pay eligibility after commencement of these
amendments. Individuals could have become entitled to baby bonus before
commencement. Individuals could also become entitled to baby bonus after
commencement since subitem 67(1) provides for the continued application of
the baby bonus provisions in certain circumstances. In practice, the current
rules that prevent an individual becoming eligible for parental leave pay where
they are entitled to baby bonus only apply in respect of children who were
born or stillborn before 1 March 2014, or entrusted to care as part of an
adoption process before 1 March 2014.
Subitem 67(12) contains definitions of terms used in this item. The terms
abbreviate the names of Acts referred to in this item.
Item 68 sets out application and transitional provisions for Part 3 of this
Schedule.
Subitem 68(1) clarifies that the amendments made by this Part apply in
relation to a person's eligibility for parental leave pay and dad and partner pay
for a child born on or after 1 March 2014.
Subitem 68(2) clarifies that the following provisions of the Paid Parental
Leave Act apply in relation to this item as if this item were a provision of that
Act:
section 275 (which deals with how that Act applies to an adopted child);
section 276 (which deals with how that Act applies to claims made in
exceptional circumstances);
section 277A (which deals with how that Act applies to claims for dad
and partner pay made in prescribed circumstances).
23
Schedule 2B - Family assistance lump sum payments
Summary
Families choosing to wait until the end of the financial year to claim their
family tax benefit or child care benefit entitlement will now have a grace period
of one year instead of two years in which to claim. This change will start for
the 2012-13 entitlement year, meaning families will have 12 months from the
end of that year (until 30 June 2014) in which to claim their entitlement.
Families will also have one year in which to lodge their tax returns if they are
to receive the end-of-year family tax benefit supplements, and to meet
immunisation and health check requirements linked to the end-of-year family
tax benefit Part A supplement.
Families will be able to access extensions in special circumstances, similar to
arrangements for tax returns. The changes bring family payment claim
periods more into line with time limits for lodging tax returns before penalties
may be imposed, and with the policy intent of the family assistance program,
to assist parents with day-to-day costs of raising children.
Background
Currently, families have until the end of the second income (financial) year
after the entitlement year in which to:
make lump sum claims for family tax benefit and child care benefit;
lodge a tax return (if required) to receive top-ups and end-of-year
supplements following reconciliation of income for family tax benefit;
ensure that children have met immunisation and health check
requirements for the end-of-year family tax benefit Part A supplement;
notify of school commencement to become eligible for schoolkids
bonus payments; and
meet claim or tax return lodgement requirements for the single income
family supplement.
This measure reduces the time available for families to complete these tasks
to one income year after the entitlement year. For example, to receive and
settle their family tax benefit for the 2012-13 year, families will have until
30 June 2014 to complete their paperwork.
Families may be able to access extensions to the one-year period for an
additional year if there are special circumstances, consistent with
arrangements in the taxation system.
24
Schedule 2B - Time periods
Explanation of the changes
Part 1 - Amendments
Amendments to the Family Assistance Act
Schoolkids bonus
An individual who is entitled to family tax benefit Part A is also eligible for the
schoolkids bonus on a bonus test day for children in their care who meet the
schoolkids bonus study requirements in sections 35UB and 35UD of the
Family Assistance Act. In addition to meeting the study requirements,
the Secretary must be notified or become aware that the child meets the study
requirements before the end of the second income year after the income year
in which the relevant bonus test day occurs.
Items 1, 2, 3 and 4 reduce these timeframes to the end of the first income
year after the income year in which the bonus test day occurs, or such further
period as the Secretary allows. The Secretary can only allow a further period
if there are special circumstances and the Secretary has allowed the
individual a further period in which to lodge a past period claim for family tax
benefit in respect of the child for the income year in which the bonus test day
occurs. The further period must end no later than the end of the second
income year after the income year in which the bonus test day occurs.
Under section 65B of the Family Assistance Act, if an individual is eligible for
a schoolkids bonus on a bonus test day, then the amount for that day is
worked out by adding together applicable amounts for each eligible child in
respect of the individual for the bonus test day. For an eligible child aged
under 16 on the bonus test day, the secondary school amount can be paid for
the child if the study requirements in subsection 65B(4) apply to the child and
the Secretary is notified or becomes aware that the study requirements are
satisfied before the end of the second income year after the income year in
which the test bonus day occurs. Items 13 and 14 reduce this timeframe,
consistent with amendments made by items 1, 2, 3 and 4.
Health check requirement
For families in receipt of income support, payment of the end-of-year family
tax benefit Part A supplement in respect of an FTB child in the income year in
which the child turns four is conditional on the child meeting the health check
requirement. However, the family tax benefit Part A supplement can be paid
if, at any time before the end of the second income year after the income year
in which the FTB child turned four, the Secretary becomes aware of
information suggesting that the FTB child meets or is exempt from the health
check requirement, or if there are special circumstances that make it
inappropriate for the requirement to be imposed.
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Schedule 2B - Time periods
Items 5 and 6 reduce the timeframe mentioned to the end of the first income
year after the income year in which the FTB child turned four or such further
time as the Secretary allows. The further period can only be allowed if there
are special circumstances and the Secretary has allowed the individual a
further period in which to lodge a past period claim for family tax benefit in
respect of the child for the income year in which the child turned four.
The further period must end no later than the end of the second income year
after the income year in which the FTB child turned four (see new
subsection 61A(2AA), as inserted by item 7).
If a child dies before the end of the second income year after the income year
in which the child turned four, then the health check requirement does not
affect payment of the family tax benefit Part A supplement in relation to the
child (see new subsection 61A(3), as inserted by item 8). That new
subsection features a reduced timeframe to reflect changes made by items 5
to 7.
Immunisation requirements
Section 61B of the Family Assistance Act sets out similar rules, which make
payment of the family tax benefit Part A supplement for an FTB child in the
income years in which the child turns one, two or five conditional on the child
meeting the immunisation requirements. However, the family tax benefit
Part A supplement can be paid if, at any time before the end of the second
income year after the income year in which the FTB child turned one, two or
five, the Secretary becomes aware of information or is satisfied that the
FTB child meets the immunisation requirements.
Items 9 and 10 reduce the timeframe mentioned in each of
paragraphs 61B(3)(a) and (b) to the end of the first income year after the
income year in which the FTB child turned one, two or five (as relevant)
or such further time as the Secretary allows. The further period can only be
allowed if there are special circumstances and the Secretary has allowed the
individual a further period in which to lodge a past period claim for family tax
benefit in respect of the child for the income year in which the child turned
one, two or five (as relevant). The further period must end no later than the
end of the second income year after the income year in which the FTB child
turned one, two or five (see new subsection 61B(3A), as inserted by item 11).
If a child dies before the end of the second income year after the income year
in which the child turned one, two or five, then the immunisation requirements
do not affect payment of the family tax benefit Part A supplement in respect of
the child - see new subsection 61B(4), as inserted by item 12. That new
subsection features a reduced timeframe to reflect changes made by items 9
to 11.
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Schedule 2B - Time periods
Amendments to the Family Assistance Administration Act
Item 15 amends paragraph 10(2)(b) of the Family Assistance Administration
Act, which limits the period for making a claim for family tax benefit.
New paragraph 10(2)(b) generally requires a claim to be made before the end
of the first income year after the income year containing the period to which
the claim relates. However, the Secretary may allow a further period for
lodging the claim if the Secretary is satisfied that special circumstances
prevented the claimant from lodging their claim within the standard timeframe.
Item 16 inserts new subsection 10(2A), which limits the further period that the
Secretary can allow. The further period must end no later than the end of the
second income year after the income year containing the period to which the
claim relates.
Item 17 inserts new section 14A, which provides that a claim for family tax
benefit for a past period in an income year (the past period income year)
is taken never to have been made if the claimant and/or their partner are
required to lodge tax return(s) for the past period income year, but do not do
so before the periods specified in that section. The claim will be taken never
to have been made if tax returns are not lodged before the end of the first
income year after the past period income year, or within such further period
allowed by the Secretary in special circumstances that prevented the tax
payer from lodging their tax return before the end of that first income year.
The further period must end no later than the end of the second income year
after the past period income year.
Items 18 to 21 amend section 28 of the Family Assistance Administration Act.
Current section 28 provides for the variation of instalment and past period
entitlement determinations where tax returns have not been lodged by the end
of the income year after the entitlement year. In these circumstances,
the family tax benefit claimant's entitlement is varied to nil under
subsection 28(2) or (6) due to non-lodgement of required tax returns. If a
relevant individual's actual income subsequently becomes known after
relevant tax returns are lodged and income tax assessments are made,
the claimant's family tax benefit entitlement is recalculated under
subsection 28(3), or, if the claimant and partner separate within a set period
after the determination is varied under subsection 28(2) or (6), it is
recalculated under subsection 28(4).
Under the new rules, if the recalculated amount exceeds the amount the
claimant was entitled to before the variation to nil, a top-up amount would
generally not be payable because an income tax return was not lodged before
the end of the first income year following the entitlement year. A top-up
payment can only be paid if special circumstances prevented the claimant or
their partner, or both, lodging their tax returns before the end of the first
income year, and if the tax return is lodged within the further period allowed
by the Secretary.
Item 18 repeals paragraph 28(3)(c) of the Family Assistance Administration
Act and substitutes a new paragraph 28(3)(c).
27
Schedule 2B - Time periods
If special circumstances prevented the claimant or their partner, or both,
lodging their tax returns before the end of the first income year,
new paragraph 28(3)(c) allows a top-up to be paid, provided the claimant and
their partner have lodged their tax returns within the timeframe that applies to
them.
Item 19 amends paragraph 28(4)(a), and item 20 repeals and substitutes a
new paragraph 28(4)(c), of the Family Assistance Administration Act.
Subsection 28(4) as so amended would apply where a debt is raised under
section 28 in circumstances where the claimant's partner has not lodged their
tax return before the end of the first income year after the entitlement year
and the Secretary allows a further period for the partner to lodge their tax
return. If the claimant separates from the partner before the end of the further
period allowed for their partner to lodge their tax return, new
paragraph 28(4)(c) would allow the claimant to receive a top-up, provided they
have lodged their own tax return within the timeframe that applies to them.
Item 21 amends subsection 28(5) of the Family Assistance Administration
Act. This amendment is consequential to amendments to subsection 28(4)
above. As a result of those amendments, subsection 28(5) would only apply
where the claimant is entitled to be paid the recalculated amount.
The family tax benefit reconciliation conditions outlined in Subdivision D of
Division 1 of Part 3 are essentially the triggers for the process known as
income reconciliation. During a financial year, a family will base their
entitlement for family tax benefit on an estimate of their income for that year.
After the end of the financial year, once the family meets their tax return
requirements, their family tax benefit entitlements based on estimated and
actual income are compared (reconciled), and the family's entitlement to the
end-of-year family tax benefit supplements is also taken into account at this
time. The reconciliation provisions set out when reconciliation occurs in
particular circumstances (for example, when the individual is and remains a
member of a couple). These provisions establish a relevant reconciliation
time that is then the trigger for the reconciliation review (and payment of the
end-of-year supplements).
Items 22 to 36 amend the family tax benefit reconciliation conditions in the
Family Assistance Administration Act. The amendments reflect changes to
the timeframe for lodging tax returns, and make some minor technical
amendments to correct some pre-existing gaps in those provisions.
Child care benefit
Items 37 and 38 amend subsection 49J(2) of the Family Assistance
Administration Act, to change the period available for making a claim for child
care benefit. These changes reflect changes to timeframes for lodging claims
for family tax benefit made by items 15 and 16.
28
Schedule 2B - Time periods
Single income family supplement
Items 39 and 40 amend subsection 65KD(2) of the Family Assistance
Administration Act, to change the period available for making a claim for
single income family supplement. These changes reflect changes to
timeframes for lodging claims for family tax benefit made by items 15 and 16,
and changes to timeframes for lodging claims for child care benefit made by
items 37 and 38.
Item 41 amends the period for lodging tax returns in paragraph 65KI(2)(b) of
the Family Assistance Administration Act. Item 42 makes a similar
amendment to paragraph 65KI(3)(c). Section 65KI restricts determination of
claims for single income family supplement where the claimant has not lodged
their tax return within the period specified in paragraph (2)(b) or their partner
has not lodged their tax return within the period specified in paragraph (3)(c).
For the claim to be determined, tax returns must generally be lodged before
the end of the first income year after the income year containing the period to
which the claim relates.
However, the Secretary may allow a further period for the claimant or their
partner to lodge a tax return if the Secretary is satisfied that special
circumstances prevented lodgement of the tax return within the standard
timeframe. Item 43 limits the further period that the Secretary may allow for
lodgement of tax returns. The further period must end no later than the end of
the second income year after the income year containing the period to which
the claim relates.
Item 44 amends the period for lodging tax returns in paragraph 65KP(3)(a) of
the Family Assistance Administration Act. Item 45 makes a similar
amendment to subparagraph 65KP(3)(b)(iii). Subsection 65KP(3) applies to
prevent an individual who is not required to lodge a claim for single income
family supplement from being paid the single income family supplement
where the individual has not lodged their tax return within the period specified
in paragraph (3)(a), or where the individual's partner has not lodged their tax
return within the period specified in subparagraph (3)(b)(iii).
For payment to be made, tax returns must generally be lodged before the end
of the first income year after the income year containing the period to which
the payment relates. However, the Secretary may allow a further period for
the individual or their partner to lodge their tax return if the Secretary is
satisfied that special circumstances prevented lodgement of the tax return
within the standard timeframe. Item 46 limits the further period that the
Secretary may allow for lodgement of tax returns. The further period must
end no later than the end of the second income year after the income year
containing the period to which the claim relates.
29
Schedule 2B - Time periods
Other changes related to family tax benefit
Item 47 amends paragraph 95(4A)(a) of the Family Assistance Administration
Act. Currently, debts arising under subsection 28(2) or (6) of the Family
Assistance Administration Act (as a result of non-lodgement of tax returns)
can be written off where the claimant and their partner separate after the end
of the second income year after the cancellation income year. Consistent with
the new general time limit for the lodgement of tax returns, debts arising under
subsection 95(4A) can now be written off where the claimant and their partner
separate after the end of the income year after the cancellation income year.
Items 48, 50 and 52 amend subparagraphs 107(3A)(b)(i), 109D(4)(d)(iii)
and 109E(3)(d)(iii) of the Family Assistance Administration Act. These
provisions ensure that, where a child meets the health check requirement in
section 61A of the Family Assistance Act after reconciliation occurs or after
the general 52-week review time limit, the family tax benefit Part A
supplement can still be paid for the child. The periods referred to in those
subparagraphs are amended to reflect the change made by item 5 to the
period referred to in paragraph 61A(2A)(a) of the Family Assistance Act.
Items 49, 51 and 53 amend subparagraphs 107(3C)(b)(i), 109D(4)(f)(iii)
and 109E(3)(f)(iii) of the Family Assistance Administration Act. These
provisions relate to the immunisation requirement in section 61B of the Family
Assistance Act, and have similar effect to subparagraphs 107(3A)(b)(i),
109D(4)(d)(iii) and 109E(3)(d)(iii) relating to the health check requirement.
The amendments made by items 49, 51 and 53 reflect the change made by
item 9 to the period referred to in paragraph 61B(3)(a) of the Family
Assistance Act.
Part 2 - Application provisions
Item 54 provides how the amendments relating to the schoolkids bonus apply.
The amendments made by items 1, 2, 13 and 14 apply in relation to bonus
test days on or after 1 January 2013. For entitlement relating to bonus test
days of 1 January 2013 and 30 June 2013, individuals would generally have
until 30 June 2014 to meet the notification requirements. The amendments
made by items 3 and 4 apply to bonus test days occurring on or after
commencement.
Item 55 provides for the application of amendments relating to the health
check and immunisation requirements for family tax benefit.
The amendments apply where the child turns the relevant age in relation the
2012-13 income year or a later income year. Only family tax benefit
entitlement for the 2012-13 and later income years is affected.
For entitlement relating to the 2012-13 income year, individuals have until
30 June 2014 to meet the health check and immunisation requirements.
30
Schedule 2B - Time periods
Item 56 provides for the application of amendments relating to the lodgement
of claims and tax returns for family tax benefit. Family tax benefit entitlement
for the 2012-13 and later income years is affected. For entitlement relating to
the 2012-13 income year, individuals have until 30 June 2014 to lodge their
claims and tax returns.
Item 57 provides for the application of amendments relating to lodgement of
claims for child care benefit. Child care benefit entitlement for the 2012-13
and later income years is affected. For entitlement relating to the 2012-13
income year, individuals have until 30 June 2014 to lodge their claims.
Item 58 provides for the application of amendments relating to lodgement of
claims and tax returns for the single income family supplement. Entitlement
for the 2012-13 and later income years is affected. For entitlement relating to
the 2012-13 income year, individuals have until 30 June 2014 to lodge their
claims and tax returns.
31
Schedule 3 - Other amendments
Summary
This Schedule makes some clarifying and technical amendments to portfolio
legislation, consistent with intended policy. For example, eligibility for
schoolkids bonus is confirmed for students who are absent from school for a
period due to special circumstances. It is also clarified that customers who
decide to end payment on a quarterly basis of clean energy supplement,
pension supplement or seniors supplement do not have to wait until the end of
the quarter to be paid arrears.
Background
Schoolkids bonus
Amendments to the schoolkids bonus will ensure that students aged under 16
who have already commenced primary or secondary school, but who are
unable to participate for a period due to special circumstances, are still able to
receive schoolkids bonus. Minor amendments are also made to clarify the
periods within which customers need to notify that they are engaging in
eligible study.
These amendments commence on the day after Royal Assent.
Entrusted to care
The family assistance legislation provides in general that baby bonus is
payable within 52 weeks after a child is born or entrusted to an individual's
care. The existing policy is that baby bonus is payable at around the time of
the child's entry into a family, when the family is likely to incur set-up costs.
A recent judgment of the Federal Court in Secretary, Department of Families,
Housing, Community Services and Indigenous Affairs v Abbott [2012]
FCAFC 172 interpreted `entrustment to care' differently to the existing policy,
to the effect that baby bonus may be paid at some time after a child enters a
person's care, when a formal process of adoption commences.
These amendments will clarify the meaning of entrustment to care to reflect
the intended policy, so that baby bonus is only paid at around the time a child
first enters a person's care.
These amendments commence on the day after Royal Assent. .
32
Schedule 3 - Other amendments
Family assistance clean energy payments
Minor changes to clean energy supplement under the family assistance law
will ensure that, if individuals end their choice to receive clean energy
supplement on a quarterly basis and start to be paid fortnightly instead, they
can be paid their arrears straight away instead of having to wait until the end
of the quarter. Another amendment removes an anomaly that prevents a
member of a couple from being entitled to a clean energy advance top-up in
certain situations.
These amendments commence on 1 July 2013, except for items 64 to 66,
which commence on the day after Royal Assent.
Social security and veterans' entitlements supplements
Amendments to the social security law and the Veterans' Entitlements
Act 1986 (Veterans' Entitlements Act) clarify that customers who decide to
end payment on a quarterly basis of clean energy supplement, pension
supplement or seniors supplement do not have to wait until the end of the
quarter to be paid arrears (similar to the family assistance clean energy
supplement amendment above). In essence, these are minor and technical
amendments, ensuring that people receive the correct amount of quarterly
payments and receive them at the correct time.
These amendments commence on the later of the day after Royal Assent or
immediately after the commencement of Part 3 of Schedule 1 to the Clean
Energy (Household Assistance Amendments) Act 2011.
Dad and partner pay
Lastly, the Schedule mirrors for dad and partner pay an administrative
provision that already exists for parental leave pay, to improve consistency in
the claim process.
These amendments commence on the day after Royal Assent.
Explanation of the changes
Part 1 - Schoolkids bonus
Amendments to the Family Assistance Act
Items 1, 2, 3, 15, 19, 20, 21, 23, 24, 25, 26, 27 and 31 introduce a study
notification period for an individual's eligibility for schoolkids bonus where that
eligibility is based on the payment of certain social security income support
payments (for example, youth allowance).
33
Schedule 3 - Other amendments
To be eligible for schoolkids bonus for a particular bonus test day in relation to
relevant study or an eligible activity, the Secretary must be notified, or
otherwise become aware, of the study or activity before the end of the
calendar year in which the bonus test day occurs. Therefore, to be eligible for
the bonus test days of 1 January or 30 June in a particular calendar year,
an individual will have until 31 December of that calendar year to notify the
Secretary of the study or activity (if the Secretary is not already aware of the
study or activity).
Items 12, 13, 14, 16, 17, 18 and 22 are consequential to the above
amendments to introduce a calendar year study notification period for income
support payment recipients.
Items 6 and 10 add another way in which an FTB child aged under 16 can be
eligible for schoolkids bonus where there are special circumstances, such as
a State or Territory education authority granting an exemption due to sickness
or disability. .
Items 4, 5 and 9 are consequential to items 6 and 10.
Items 7, 8 and 11 amend subsection 35UD(1) by introducing a study
notification period for an FTB child of an individual to be an eligible child for
schoolkids bonus in relation to relevant study or an eligible activity. For an
FTB child to be an eligible child for schoolkids bonus for a particular bonus
test day, the Secretary must be notified, or otherwise become aware, of the
study or activity before the end of the second income year after the income
year in which the bonus test day occurs. This two-year period is in line with
the claim period for family tax benefit.
Item 30 inserts new paragraph 65B(4)(c), which would add another way in
which an FTB child aged under 16 can attract the higher secondary school
amount of schoolkids bonus. This would apply if the eligible child has at any
time undertaken full-time study in respect of a secondary course and the
Secretary is satisfied that there are special circumstances that justified the
child not participating in that course during the previous education period for
the bonus test day, including where a State or Territory education authority
has granted an exemption due to sickness or disability.
Items 28 and 29 are consequential to item 30.
Item 33 repeals subsection 65E(3) and substitutes new subsections 65E(3)
and (3A). New subsections 65E(3) and (3A) are applicable in determining the
amount of schoolkids bonus an individual is entitled to for a child aged
under 16. If the individual satisfies the requirements of subsection 65E(3)
or (3A), the individual is entitled to the secondary school amount of schoolkids
bonus of $410 (paid twice a year).
34
Schedule 3 - Other amendments
New subsection 65E(3) relates to an individual who is eligible under
subsection 35UE(1) or (3) for schoolkids bonus (due to being paid youth
allowance, disability support pension, carer payment, parenting payment or
special benefit). The amendment would increase the period for notifying the
Secretary of the relevant study or eligible activity from `13 weeks' to `the end
of the calendar year in which the bonus test day occurs'.
New subsection 65E(3A) relates to an individual who is eligible under
subsection 35UE(2) for schoolkids bonus (due to being paid ABSTUDY living
allowance). The amendment would remove the current 13-week period for
notifying the Secretary of the relevant study or eligible activity. A separate
notification period would not be included as the general claim period for
payment of ABSTUDY living allowance for a particular calendar year is
already the end of that calendar year.
Item 32 is consequential to item 33.
Amendments to the Family Assistance Administration Act
Item 34 adds new section 35H, which will introduce an obligation to notify the
Secretary of a change in circumstances that may affect eligibility for, or the
amount of, schoolkids bonus.
New subsection 35H(1) provides that, if an individual is eligible for schoolkids
bonus on a bonus test day and there is a change in circumstances that may
affect the individual's eligibility for schoolkids bonus on a later bonus test day
or the amount of schoolkids bonus for a later bonus test day, the individual
must notify the Secretary of that change, in the manner set out in a written
notice given to the individual under subsection 35H(3). The individual must
notify the Secretary as soon as practicable after the change in circumstances.
The relevant circumstance affecting schoolkids bonus is a child's study status.
For example, an individual would be obliged under new section 35H to notify
the Secretary if a child leaves study or moves onto another type of study
which does not attract schoolkids bonus.
New subsection 35H(2) provides that the Secretary must approve a manner of
notification that an individual is to use when notifying the Secretary of a thing
under subsection 35H(1). Under new subsection 35H(3), the Secretary must,
by written notice, notify the individual of the approved manner of notification.
Item 35 is an application provision. Subitem 35(1) provides that the
amendments made by items 1 to 33 apply in relation to working out eligibility
for schoolkids bonus on bonus test days occurring on or after the day this Act
receives the Royal Assent.
Subitem 35(2) provides that paragraph 35H(1)(a) of the Family Assistance
Administration Act, as inserted by item 34, applies in relation to bonus test
days occurring on or after the day this Act receives the Royal Assent.
35
Schedule 3 - Other amendments
Part 2 - Entrusted to care
Amendments to the Family Assistance Act
Item 36 inserts a new definition of becomes entrusted to clarify that a child
becomes entrusted to the care of an individual at a particular point in time.
At that time, the child must be entrusted to the individual's care by a person,
with the result that the child is in the care of that individual, and the child
cannot have previously been in the care of that individual.
Item 37 amends subparagraphs 36(3)(b)(i) and (ii) by substituting the words,
`becomes entrusted' in place of `is entrusted'. Subsection 36(3) of the Family
Assistance Act provides the conditions for eligibility for baby bonus in cases
where a child is entrusted to the care of an individual or individual's partner.
The amendments clarify the intention for these provisions to apply to the point
in time that entrustment occurs.
Item 38 repeals paragraphs 36(5)(a) and (b) and substitutes paragraphs (a),
(aa), (ab) and (b). Subsection 36(5) provides the conditions for eligibility for
baby bonus in adoption cases. New subparagraphs 36(5)(a), (aa), (ab) and
(b) clarify that where a child becomes entrusted to the care of an individual on
a day, that entrustment must be made by an authorised party as part of the
adoption process of the child by the individual. The child must be aged
under 16 on that day.
Item 39 makes consequential amendments to subparagraphs 36(5)(bc)(i)
and (ii) and (c)(i) to specifically refer to the day on which entrustment occurs.
Amendments to the Family Assistance Administration Act
Items 40 and 41 make similar amendments to the Family Assistance
Administration Act by substituting the words, `becomes entrusted' in place of
`is entrusted', to clarify that eligibility is determined by the particular point in
time a child becomes entrusted to care.
Amendments to the Families, Housing, Community Services and
Indigenous Affairs and Other Legislation Amendment (2008 Budget and
Other Measures) Act 2008
Items 42, 43, 44, 45 and 46 make consequential amendments to the
Families, Housing, Community Services and Other Legislation Amendment
(2008 Budget and Other Measures) Act 2008. The amendments alter
application provisions so that those provisions have effect in line with the
substantive amendments to the Family Assistance Act in items 36 to 39
above.
36
Schedule 3 - Other amendments
Amendments to the Paid Parental Leave Act
Item 47 repeals the definition of day of placement in section 6.
The definition is not required because of the amendments providing for the
date that a child becomes entrusted to care made by this Part.
Items 48 inserts the word `aged' in section 274 to clarify the section.
Items 49 is a consequential amendment to section 274.
Items 50, 51 and 52 amend paragraphs 275(1)(b), (c) and (d) as a result of
the amendment made in item 53.
Item 53 replaces subsections 275(2) and (3) of the Paid Parental Leave Act
with new subsection 275(2). The new paragraph 275(2)(a) provides that,
where a child becomes, or is to become, entrusted to the care of a person,
the term `becomes entrusted' has the same meaning as in in the Family
Assistance Act. Paragraphs (b) and (c) provide that the entrustment must be
made by an authorised party as part of the adoption process of the child by
the person. Paragraph (d) provides that the child must be aged under 16 on
the day the child becomes entrusted to care of that person.
Amendments to the Paid Parental Leave (Consequential Amendments)
Act 2010
Item 54, 55 and 56 make consequential amendments to paragraphs 3(b), 3(c)
and 3(d) of Schedule 2 to the Paid Parental Leave (Consequential
Amendments) Act 2010 to ensure that a consistent interpretation of the
concept of `becomes entrusted' is applied.
Application of amendments
Item 57 provides that the amendments will apply to a child becoming
entrusted to care before, on or after the commencement of these provisions.
The amendments are being applied retrospectively to decisions made before
the commencement of the amendments, to support the policy and
administration that has been applied before that commencement. If the
amendment were not retrospective, it would allow some previously decided
cases to be revisited.
However, the amendments do not apply to proceedings finally determined by
a court before this item commenced to avoid altering the rights and liabilities
of the parties determined by a court in that case.
37
Schedule 3 - Other amendments
Part 3 - Family assistance clean energy payments
Amendments to the Family Assistance Act
Item 58 removes some words from note 2 to subsection 58A(1) as a
consequence of the amendment made by item 67.
Item 59 inserts new subsections 58A(3A) and (3B) after subsection 58A(3).
New subsection 58A(3A) provides that an election to receive clean energy
supplements quarterly ceases to be in force if the individual is eligible under
subsection 32(1) for a single amount of family tax benefit on the death of an
FTB child or regular care child (that is, a lump sum child bereavement
payment). The election ceases to be in force on the `request day', which is
the day the individual requests a lump sum child bereavement payment. This
will enable the arrears of clean energy supplement to be paid as soon as
practicable if the family tax benefit recipient is entitled to a lump sum child
bereavement payment, and will avoid the complex interaction of lump sum
child bereavement calculations and clean energy supplement calculations.
New subsection 58A(3B) provides that, if an election to receive clean energy
supplements quarterly ceases to be in force under new subsection 58A(3A),
the individual cannot make another election under subsection 58A(1) to
receive clean energy supplements quarterly until after the end of the lump
sum child bereavement period. In general, the lump sum child bereavement
period ends at the end of the period of 14 weeks beginning on the day the
child died.
Item 60 makes a technical amendment to allow the addition of a new
paragraph by item 61.
Item 61 adds new paragraph 109(c) after paragraph 109(b) in the
general rules for the clean energy advances provisions. The effect of adding
new paragraph 109(c) is that, if a top-up payment of clean energy advance
was worked out under subsection 108(1A) in accordance with a legislative
instrument under subsection 108(1B), then section 109 will not apply. This
amendment will avoid the current anomaly whereby section 109 prevents a
member of a couple from being entitled to a clean energy advance top-up in
certain situations where that outcome is unintended. For example, where a
person who was previously paid a clean energy advance for a child later
becomes a member of a couple and they have a child together, it is intended
that a clean energy advance top-up can be paid if the top-up is worked out in
accordance with a legislative instrument under subsection 108(1B).
38
Schedule 3 - Other amendments
Item 62 is an application provision, which provides that the amendments
made by items 60 and 61 apply in relation to working out whether individuals
are entitled to payments of clean energy advance on or after the day those
items commence (whether the entitlements referred to in paragraph 109(a) of
the Family Assistance Act arose before, on or after that commencement).
The amendments made by items 60 and 61 are beneficial because they will
enable a clean energy advance top-up in certain situations where it would not
otherwise be payable. The application of those amendments to an
entitlement referred to in paragraph 109(a) that arose before the amendments
commence (as well as on or after commencement) is beneficial, as it would
also enable a top-up where the original clean energy advance was paid
before the amendments commence.
Items 63, 64 and 65 remove some words from the notes to three subclauses
in Schedule 1 as a consequence of the amendment made by item 67.
Amendments to the Family Assistance Administration Act
Item 66 makes a technical amendment to paragraph 105B(1)(b) to reflect the
insertion of new subsection 105B(2A) by item 67.
Item 67 repeals subsection 105B(2) and substitutes new subsections 105B(2)
and (2A). Section 105B applies to a determination in force in a quarter under
which an individual is entitled to be paid family tax benefit by instalment where
an election has been made by the individual, under subsection 58A(1) of the
Family Assistance Act, to receive clean energy supplements on a quarterly
basis. A `quarter' means the period of three months beginning on 1 July,
1 October, 1 January or 1 April.
The changes made by new subsections 105B(2) and (2A) will allow the
immediate payment of arrears to an individual where a quarterly clean energy
supplement choice is ended. New paragraph 105B(2)(a) allows a calculation
to occur before the end of the quarter and arrears to be paid immediately,
once one of the following applies in that quarter:
the individual ceases to be entitled to be paid family tax benefit by
instalment (under the determination under section 16 of the Family
Assistance Administration Act); or
the individual revokes the election to be paid quarterly clean energy
supplements; or
the individual is entitled to a lump sum child bereavement payment
(under subsection 32(1) of the Family Assistance Act).
Under new paragraph 105B(2)(b), if none of the conditions in
paragraph 105B(2)(a) applies, then calculation and payment of arrears will
occur after the end of that quarter.
39
Schedule 3 - Other amendments
Part 4 - Social security and veterans' entitlements supplements
Division 1 - Instalments of quarterly supplements
Amendments to the Social Security Administration Act
Item 68 amends subsection 48B(2) by omitting the words, `on or after the first
seniors supplement test day (the current test day) that follows a day on
which the person is qualified for seniors supplement', and substituting the
words, `after the end of an instalment period'. The amendment provides that
seniors supplement is to be paid to the person as soon as practicable after
the end of the instalment period which is inserted by item 70 below.
Item 69 amends paragraph 48B(3)(a) by omitting the words, `during the test
period on which the person was qualified for seniors supplement', and
substituting the words, `in the instalment period'. This is a consequential
amendment as a result of the amendment made in item 70 below.
Item 70 repeals subsection 48B(4) and substitutes a new subsection.
The new subsection 48B(4) provides a definition of instalment period.
An instalment period is the number of days for which seniors supplement is
payable to a person starting on or after 20 March, 20 June, 20 September or
20 December and ending on or before the following 19 June, 19 September,
19 December or 19 March respectively.
This amendment allows immediate payment of any accrued seniors
supplement where it ceases to be payable to a person. It ensures that people
receive their accrued seniors supplement as soon as they cease to qualify for
it, instead of having to wait until the end of the quarter. If a person remains
qualified for seniors supplement, they will continue to receive the payment
quarterly.
Item 71 amends subsection 48C(2) by omitting the words, `on or after the first
supplement test day (the current test day) that follows a day on which an
election by the person subsection 1061VA(1) is in force', and substituting the
words, `after the end of an instalment period'. The amendment provides that
quarterly pension supplement is to be paid to the person as soon as
practicable after the end of the instalment period, a definition of which is
inserted by item 73 below.
Item 72 amends subsection 48C(3) by omitting the words, `during the test
period for which an election by the person under subsection 1061VA(1) is in
force', and substituting the words, `in the instalment period'. This is a
consequential amendment as a result of the amendment made by item 73
below.
40
Schedule 3 - Other amendments
Item 73 repeals subsection 48C(4) and substitutes a new subsection.
New subsection 48C(4) has the same practical effect as new
subsection 48B(5) provided for by item 70 above. That is, it allows immediate
payment of any accrued quarterly pension supplement where it ceases to be
payable to a person. It ensures that people receive their accrued quarterly
pension supplement as soon as they cease to qualify for it, instead of having
to wait until the end of the quarter. If a person remains qualified for quarterly
pension supplement, they will continue to receive the payment quarterly.
Item 74 amends subsection 48D(2) by omitting the words, `on or after the first
supplement test day (the current test day) that follows a day for which
quarterly clean energy supplement is payable to the person', and substitutes
the words, `after the end of an instalment period'. The amendment provides
that quarterly clean energy supplement is to be paid to the person as soon as
practicable after the end of the instalment period, definition of which is
inserted by item 76 below.
Item 75 omits the words, `during the test period for which quarterly clean
energy supplement is payable to the person', from paragraph 48D(3)(a), and
substitutes the words, `instalment period'. This is a consequential amendment
as a result of the amendment made by item 76 below.
Item 76 repeals subsection 48D(4) and substitutes a new subsection.
New subsection 48D(4) has the same practical effect as new
subsection 48B(5) provided for by item 70 above. That is, it allows immediate
payment of any accrued quarterly clean energy supplement where it ceases
to be payable to a person. It ensures that people receive their accrued
quarterly clean energy supplement as soon as they cease to qualify for it,
instead of having to wait until the end of the quarter. If a person remains
qualified for quarterly clean energy supplement, they will continue to receive
the payment quarterly.
Amendments to the Veterans' Entitlements Act
Item 77 amends subsection 60C(2) by omitting the words, `on or after the first
supplement test day (the current test day) that follows a day on which an
election by the person under subsection 60A(1) is in force', and substituting
the words, `after the end of an instalment period'. The amendment provides
that quarterly pension supplement is to be paid to the person as soon as
practicable after the end of the instalment period, a definition of which is
inserted by item 79 below.
Item 78 amends subsection 60C(3) by omitting the words, `during the test
period for which an election by the person under subsection 60A(1) is in
force', and substituting the words, `in the instalment period'. This is a
consequential amendment as a result of the amendment made by item 79
below.
41
Schedule 3 - Other amendments
Item 79 repeals subsection 60C(5) and substitutes a new subsection.
The new subsection 60C(5) provides a definition of instalment period.
An instalment period is the number of days for which quarterly pension
supplement is payable to a person starting on or after 20 March, 20 June,
20 September or 20 December and ending on or before the following 19 June,
19 September, 19 December or 19 March respectively.
This amendment allows immediate payment of any accrued quarterly pension
supplement where it ceases to be payable to a person. It ensures that people
receive their accrued quarterly pension supplement as soon as they cease to
be eligible for it, instead of having to wait until the end of the quarter. If a
person remains eligible for quarterly pension supplement, they will continue to
receive the payment quarterly.
Item 80 amends subsection 62D(3) by repealing the subsection and
substituting a new subsection. The new subsection provides that an
instalment of quarterly clean energy supplement is to be paid as soon as
practicable after the end of an instalment period.
Item 81 amends subsection 62D(4) by omitting the words, `that period on
which the election was in force', and substituting the words, `the instalment
period'. This is a consequential amendment as a result of the amendment
made by item 82 below.
Item 82 repeals subsection 62D(5) and substitutes a new subsection.
New subsection 62D(5) has the same practical effect as new
subsection 60C(5) provided for by item 79 above. That is, it allows immediate
payment of any accrued quarterly clean energy supplement where it ceases
to be payable to a person. It ensures that people receive their accrued
quarterly clean energy supplement as soon as they cease to be eligible for it,
instead of having to wait until the end of the quarter. If a person remains
eligible for quarterly clean energy supplement, they will continue to receive
the payment quarterly.
Item 83 amends subsection 62E(2) by repealing the subsection and
substituting a new subsection. The new subsection provides that an
instalment of quarterly clean energy supplement is to be paid as soon as
practicable after the end of an instalment period.
Item 84 amends subsection 62E(3) by omitting the words, `that period on
which the election was in force', and substituting the words, `the instalment
period'. The amendment provides that quarterly clean energy supplement is
to be paid to the person as soon as practicable after the end of the
instalment period, a definition of which is inserted by item 85 below. This is
a consequential amendment as a result of the amendment made by item 85
below.
42
Schedule 3 - Other amendments
Item 85 inserts new subsection 62E(4A). New subsection 62E(4A) has the
same practical effect as new subsection 60C(5) provided for by item 79
above. That is, it allows immediate payment of any accrued quarterly clean
energy supplement where it ceases to be payable to a person. It ensures that
people receive their accrued quarterly clean energy supplement as soon as
they cease to be eligible for it, instead of having to wait until the end of the
quarter. If a person remains eligible for quarterly clean energy supplement,
they will continue to receive the payment quarterly.
Item 86 makes amendments to subsection 118PC(2) by omitting the words,
`on or after the first seniors supplement test day (the current test day) that
follows a day on which the person is eligible for seniors supplement', and
substituting the words, `after the end of an instalment period'.
The amendment provides that seniors supplement is to be paid to the person
as soon as practicable after the end of the instalment period, a definition of
which is inserted by item 88 below.
Item 87 makes amendments to paragraph 118PC(3)(a) by omitting the words,
`during the test period on which the person was qualified for seniors
supplement', and substituting the words, `in the instalment period'. This is a
consequential amendment as a result of the amendment made by item 88
below.
Item 88 repeals subsection 118PC(4) and substitutes a new subsection. The
new subsection 118PC(4) provides a definition of instalment period.
An instalment period is the number of days for which seniors supplement is
payable to a person starting on or after 20 March, 20 June, 20 September or
20 December and ending on or before the following 19 June, 19 September,
19 December or 19 March respectively.
This amendment allows immediate payment of any accrued seniors
supplement where it ceases to be payable to a person. It ensures that people
receive their accrued seniors supplement as soon as they cease to be eligible
for it, instead of having to wait until the end of the quarter. If a person remains
eligible for seniors supplement, they will continue to receive the payment
quarterly.
Division 2 - Interactions with quarterly clean energy supplement
Amendments to the Social Security Act
Item 89 makes amendments to Note 1 at the end of subsection 1210(1) by
adding the words, `See also subsection (2A)'. This is a consequential
amendment as a result of the amendment in item 90 below.
43
Schedule 3 - Other amendments
Item 90 inserts a new subsection 1210(2A) after subsection 1210(2). This is
a technical amendment to ensure that people who elect to receive quarterly
clean energy supplement receive the same amount of social security payment
(other than social security pensions, unless the pension is parenting payment
single or disability support pension for a person under 21 years of age without
a dependent child) as they would receive if they had elected to receive their
clean energy supplement as part of their fortnightly instalment.
Item 91 makes an amendment to the note at the end of subsection 1210(3A)
by omitting the words, `person's quarterly clean energy supplement is', and
substituting the words, `main rate would be'.
Amendments to the Social Security (Administration) Act
Item 92 omits the words, `(other than a social security pension)', from
paragraph 43(4)(a). This is a consequential amendment to give full effect to
the further amendments below.
Item 93 inserts a new paragraph 43(4)(aa) into subsection 43(4) to provide
that the subsection applies to social security payments that are not social
security pensions other than pension PP(single) for people who have not
reached pension age and disability support pension for people who are under
21 years of age and who do not have dependent children.
Item 94 inserts a new paragraph 43(5AA)(aa) into subsection 43(5AA) to
provide that the subsection applies only to social security pensions other than
pension PP(single) for people who have not reached pension age and
disability support pension for people who are under 21 years of age and who
do not have dependent children.
Item 95 repeals paragraph 43(5B)(c) and substitutes new
paragraph 43(5B)(c). This is a technical amendment to ensure that people
receive the same amount of quarterly clean energy supplement as they would
receive if they had elected to receive their clean energy supplement as part of
their fortnightly instalment.
Amendments to the Veterans' Entitlements Act
Item 96 repeals paragraph 62E(6)(b) and substitutes new
paragraphs 62E(6)(b) and (c). This is a technical amendment to ensure that
people receive the same amount of quarterly clean energy supplement as
they would receive if they had elected to receive their clean energy
supplement as part of their fortnightly instalment.
Item 97 amends the note at the end of subclause 4(5) of Schedule 6 by
omitting the words, `person's quarterly clean energy supplement is', and
substituting the words, `main rate would be'.
44
Schedule 3 - Other amendments
Division 3 - Other minimum daily rate amendments
Amendments to Social Security Administration Act
Item 98 amends paragraph 43(4)(a) to omit the words, `of the following
amounts (an added amount) is', and substituting the words, `or both of the
following amounts (the added amounts) are'. This is a typographical
amendment to ensure that people on the relevant payment types receive the
full benefit of this provision and the amendments in items 99 and 100 below.
Item 99 repeals paragraph 43(4)(b) and substitutes a new paragraph 43(4)(b).
The new paragraph ensures that people in receipt of parenting payment
single and disability support pension (where they are under 21 years of age
and do not have a dependent child) receive the correct minimum daily rate.
Item 100 repeals the definition of minimum daily rate in subsection 43(5)
and substitutes a new definition. The new definition clarifies that the minimum
daily rate for people in receipt of parenting payment single and disability
support pension (where they are under 21 years of age and do not have a
dependent child) is comprised of pharmaceutical allowance. For people on
other social security payments covered by subsection 43(4), the minimum
daily rate is determined by reference to the pension supplement minimum
amount.
Part 5 - Dad and partner pay
Amendments to the Paid Parental Leave Act
Item 101 adds a new Division 3A after Division 3 of Part 6-1 of Chapter 6.
This relates to how the Paid Parental Leave Act applies to claims for dad and
partner pay made in prescribed circumstances.
New subsection 277A(1) provides that this section applies to a claim for dad
and partner pay that is made in circumstances prescribed by the Paid
Parental Leave Rules as being circumstances in which this section applies.
New subsection 277A(2) outlines how the Paid Parental Leave Act applies to
dad and partner pay claims made in prescribed circumstances. A claim is
made in prescribed circumstances if it is made under the Paid Parental Leave
Rules. Prescribed circumstances will generally include surrogacy
arrangements and circumstances in which there is an unexpected change of
carer for the child - for example, as a result of the death or serious illness of a
parent of the child - allowing for another claimant to make a claim for dad and
partner pay as provided for in the Paid Parental Leave Rules. In certain
prescribed circumstances, under subsection 277A(2), the Paid Parental Leave
Act applies in relation to a claim for dad and partner pay as if:
a reference to the birth of a child were a reference to the earlier of the
claimant beginning to care for the child and the claimant's partner
(if any) beginning to care for the child; and
45
Schedule 3 - Other amendments
a reference to the day the child was born were a reference to the
earlier of the day the claimant began to care for the child and the day
the claimant's partner (if any) began to care for the child; and
a reference to the expected date of birth of the child were a reference
to the earlier of the day the claimant expects to begin to care for the
child and the day the claimant's partner (if any) expects to begin to
care for the child; and
a reference to the child's first birthday were a reference to the first
anniversary of the earlier of the day the claimant began to care for the
child and the day the claimant's partner (if any) began to care for the
child; and
a reference to a completed birth verification form for a child were a
reference to information required by the Secretary about the earlier of
the claimant beginning to care for the child and the claimant's partner
(if any) beginning to care for the child; and
a reference to a child being born during the same multiple birth were a
reference to:
- the claimant beginning to care for the child at the same time as
beginning to care for another child; or
- if the claimant's partner (if any) begins to care for the child before
the claimant - the claimant's partner beginning to care for the child
at the same time as beginning to care for another child.
Subsection 18(3), which deals with birth registration, is excluded from the
effect of new subsection 277A(2) so that a DAPP claimant in prescribed
circumstances may still be required to comply with the requirements of that
subsection.
New subsection 277A(3) is included to deal with adoption. The new
subsection provides that section 277A does not limit Division 2 of Part 6-1 of
the Paid Parental Leave Act, which deals with how this Act applies to an
adopted child. The note to subsection 277A(3) provides guidance that not all
circumstances to which paragraph 115DD(d) applies must be prescribed as
being circumstances in which section 277A applies. An example of this is the
adoption of a child, which could be prescribed for the purposes of
paragraph 115DD(d), but not for the purposes of section 277A. In this case,
section 275, which deals with how the Act applies to an adopted child, would
apply.
Item 102 is an application provision for new Division 3A, which provides that
the amendment made by this Part applies to claims for dad and partner pay
made on or after the commencement of this item (the day after this Act
receives the Royal Assent).
46
STATEMENTS OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011
Family Assistance and Other Legislation Amendment Bill 2013
Reduction of baby bonus from 1 July 2013 (Schedule 1) and
Other amendments - Dad and partner pay (Part 5 of Schedule 3)
These amendments are compatible with the human rights and freedoms
recognised or declared in the international instruments listed in section 3 of
the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the amendments
Schedule 1 to the Bill makes amendments to the amount of baby bonus
provided for in section 66 of the A New Tax System (Family Assistance)
Act 1999. The amount of baby bonus for second and subsequent children
who come into a family from 1 July 2013 will be reduced to $3,000.
The change will apply regardless of whether the child is born into the family,
adopted by the family, or entrusted to the family's care within 26 weeks of
birth (for example, under a foster care arrangement). Baby bonus will
continue to be paid at the rate of $5,000 for a family's first child, and for each
child who comes into the family in a multiple birth, adoption or entrustment to
care.
The purpose of the amendments to baby bonus is to maintain support for new
parents with the upfront costs of having a baby, while ensuring the family
payments system is sustainable into the future. The amendments recognise
that families do not face the same upfront costs for a second or later child as
they do for their first child, with the more expensive items usually already
purchased.
Part 5 of Schedule 3 makes technical amendments to the Paid Parental
Leave Act 2010, relating to how the legislation applies to dad and partner pay
claims made in `prescribed circumstances'.
Human rights implications
These amendments are likely to engage the following human rights:
1
Statements of compatibility with human rights
Right to social security
Article 9 of the International Covenant on Economic, Social and Cultural
Rights (ICESCR) recognises `the right of everyone to social security'. That
right requires a social security system to be established, and states that a
country must, within its maximum available resources, ensure access to a
social security scheme that provides a minimum essential level of benefits to
all individuals and families that will enable them to acquire at least essential
health care, basic shelter and housing, water and sanitation, foodstuffs, and
the most basic forms of education. Article 26 of the Convention on the Rights
of the Child (CRC) ensures that right to `every child' and requires that `the
benefits should, where appropriate, be granted, taking into account the
resources and the circumstances of the child and persons having
responsibility for the maintenance of the child'.
The amendments to the amount of baby bonus will continue to support new
parents with the payment of $5,000 for the upfront costs of having their first
child, regardless of whether the child is born into the family, adopted by the
family, or entrusted to the family's care within 26 weeks of birth. This higher
rate takes into account the circumstances of parents having their first child,
as they face higher upfront costs. The baby bonus rate of $3,000 provides
benefits to individuals and families for second and subsequent children, taking
into account the reduced upfront costs involved.
The amendments also recognise the financial pressures that families face
with multiple births, and where two or more children are adopted as part of the
same process or entrusted to the family's care within 26 weeks of birth as part
of the same process. The baby bonus rate of $5,000 is maintained for each
child in those circumstances.
Rights of children deprived of their family environment
Article 20 (1) of the CRC provides that `a child temporarily or permanently
deprived of his or her family environment, or in whose own best interests
cannot be allowed to remain in that environment, shall be entitled to special
protection and assistance provided by the State'.
The amendments to the amount of baby bonus ensure that children adopted
by a family, or entrusted into care of a family within 26 weeks of birth, receive
special protection and assistance, by maintaining the same higher rate of
$5,000 of baby bonus for the first child that is adopted or entrusted into care,
as for the first birth child.
2
Statements of compatibility with human rights
The amendments made to the Paid Parental Leave Act 2010 clarify how the
legislation applies to dad and partner pay claims made in `prescribed
circumstances'. These amendments promote the rights of parents and
children by extending the time in which dad and partner pay claims made in
`prescribed circumstances' can be made to a year from the day the claimant
began to care for the child, rather than a year from the day the child was born.
This means that, for surrogacy claims and circumstances involving a change
in care arrangements due to the long-term inability of the birth mother to care
for the child, there is a longer time in which a claim can be made, protecting
the interests of children in these circumstances.
Right to health
Article 10 (2) of the ICESCR states that `special protection should be
accorded to mothers during a reasonable period before and after childbirth'.
The change to the amount of baby bonus recognises that mothers who have
had their first stillborn child have had a traumatic experience. The baby
bonus rate of $5,000 is given to mothers following a stillbirth to protect their
physical and mental health and meet any expenses associated with the
stillbirth. The baby bonus amount of $3,000 is also given to mothers who
have a second or a subsequent stillbirth.
Conclusion
These amendments are compatible with human rights because they advance
the protection of human rights.
3
Statements of compatibility with human rights
Family Assistance and Other Legislation Amendment Bill 2013
Family tax benefit and double orphan pension (Schedule 2)
This Schedule is compatible with the human rights and freedoms recognised
or declared in the international instruments listed in section 3 of the Human
Rights (Parliamentary Scrutiny) Act 2011.
Overview of Schedule 2
This Schedule makes amendments to ensure eligibility for family tax benefit
until the end of a calendar year for young people who complete secondary
study or its equivalent in either November or December of that year.
Additionally, the qualification period for double orphan pension is being
extended so that it aligns with eligibility for family tax benefit.
Human rights implications
This Schedule is likely to engage the following human rights:
Right to social security
The amendments in Schedule 2 will ensure the continuation of payments such
as family tax benefit and double orphan pension to parents and guardians for
a period after the child has completed secondary study, so that assistance for
a child does not cease immediately on the child completing study. As such,
these amendments promote the right to social security outlined in Article 9 of
the International Covenant on Economic, Social and Cultural Rights and
Article 26 of the Convention on the Rights of the Child (CRC).
Rights of children deprived of their family environment
Double orphan pension qualification currently ceases as soon as the child
ceases study. The amendments to double orphan pension extend
qualification so that child age qualification aligns with family tax benefit child
age eligibility. Under the amendments in Schedule 2, a carer can continue to
receive double orphan pension for a young person in their care until their 18th
birthday if they have already completed secondary study, or up to the end of
the calendar year if the child is aged less than 20 and completes secondary
study in November or December. This continuation of government assistance
for children who are double orphans promotes the rights of children deprived
of their family environment as outlined under Article 20 of the CRC.
Conclusion
This Schedule is compatible with human rights because it advances the
protection of human rights.
4
Statements of compatibility with human rights
Family Assistance and Other Legislation Amendment Bill 2013
Replacement of baby bonus from 1 March 2014 (Schedule 2A) and
Time periods (Schedule 2B)
These Schedules are compatible with the human rights and freedoms
recognised or declared in the international instruments listed in section 3 of
the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of Schedules 2A and 2B
Part 1 of Schedule 2A to the Bill replaces the baby bonus with an increased
rate of family tax benefit Part A for babies born on or after 1 March 2014
(where the individual is a parent or the child has been entrusted to the
individual's care) and in respect of children who have become entrusted to
care on or after 1 March 2014, where this occurs as part of an adoption
process.
The increased rate of family tax benefit Part A will be $2,000 for first children
(and each child in a multiple birth or entrustment to care) and $1,000 for
subsequent children. It will be paid as an initial instalment of $500, with the
remainder rolled into fortnightly payments over a 13-week period.
The increase to family tax benefit Part A maintains support for new parents at
a rate that more closely reflects the essential upfront costs of having a baby.
The amendments also recognise that families do not face the same upfront
costs for a second or later child as they do for their first child, with the more
expensive items usually already purchased.
Part 2 of Schedule 2A to the Bill introduces a stillborn baby payment, which
delivers the same level of assistance for families with a stillborn child.
Part 3 of Schedule 2A to the Bill amends the Paid Parental Leave (PPL) work
test, so that a person's previous PPL period or dad and partner pay (DAPP)
period that occurs in the 13 months before the birth or adoption of a second or
subsequent child, will count towards the work test in respect of a new paid
parental leave claim.
Schedule 2B to the Bill makes amendments to reduce certain time periods in
the family assistance system from two financial years to one financial year.
Families who have estimated their income will have one financial year to
lodge their tax return and confirm income to get family tax benefit top-ups or
end of year supplements. For example, families who have received family tax
benefit instalments during the 2012-13 financial year will have until
30 June 2014 to lodge their tax returns to be paid any additional amounts they
are entitled to for the 2012-13 financial year based on their actual income.
5
Statements of compatibility with human rights
Where families choose not to estimate their income and instead claim family
tax benefit or child care benefit at the end of a financial year, they will have
one financial year period to do so. Similar arrangements will apply for the
single income family supplement.
Families with children of a particular age may be required to undertake certain
actions, such as meet immunisation and health check requirements, before
family assistance amounts can be paid. These families will now have one
financial year after the financial year in which the child turns the relevant age
to meet those requirements.
The purpose of the amendments in Schedule 2B to claim and tax return
lodgement periods is to align those periods more closely with the timeframes
for lodging tax returns in the taxation system. However, where a family has
special circumstances, an extension to the time period may be granted,
similar to arrangements in the taxation system.
Human rights implications
These amendments are likely to engage the following human rights:
Right to social security
Article 9 of the International Covenant on Economic, Social and Cultural
Rights (ICESCR) recognises `the right of everyone to social security'. That
right requires a social security system to be established, and states that a
country must, within its maximum available resources, ensure access to a
social security scheme that provides a minimum essential level of benefits to
all individuals and families that will enable them to acquire at least essential
health care, basic shelter and housing, water and sanitation, foodstuffs,
and the most basic forms of education. Article 26 of the Convention on the
Rights of the Child (CRC) ensures that right to `every child', and requires that
`the benefits should, where appropriate, be granted, taking into account the
resources and the circumstances of the child and persons having
responsibility for the maintenance of the child'.
The increased rate of family tax benefit Part A associated with the birth,
adoption or placement into care of a child will continue to support new parents
with the upfront costs of having their first child, regardless of whether the child
is born into the family, adopted by the family, or entrusted to the family's care
for at least 13 weeks within the first year of the child's life (for example, due to
a foster care placement). The higher payment of $2,000 takes into account
the circumstances of parents having their first child, as they face higher
upfront costs. The lower payment of $1,000 provides benefits to individuals
and families for second and subsequent children, taking into account the
reduced upfront costs involved.
Where a family has a stillborn child, the amendments in Part 2 of Schedule 2A
will maintain the same level of assistance for these families.
6
Statements of compatibility with human rights
The amendments in Schedule 2A also recognise the financial pressures that
families face with multiple births, and where two or more children are adopted
as part of the same process, or entrusted to the family's care as part of the
same process. The payment rate of $2,000 is maintained for each child in
those circumstances.
The amendment to the work test promotes the right to social security because
it will enable more people to be eligible for the Paid Parental Leave scheme,
as any PPL period or DAPP period for a previous child will count towards the
work test in respect of a subsequent parental leave pay or dad and partner
pay claim. This will make it easier for mothers who have children close
together to be eligible for the Paid Parental Leave scheme. The amendments
will also make it easier for dads and partners to meet the work test and qualify
for dad and partner pay and parental leave pay, by counting any DAPP period
or PPL period for a previous child towards the work test for a new dad and
partner pay claim. These amendments take into account the circumstances
of families having children close together, and ensure those families receive
maximum benefits.
The amendments in Schedule 2B also engage the right to social security.
The change to the affected time periods will not affect families' access to
assistance for day-to-day costs. Families can continue to access this
assistance on the basis of their estimated family income during a particular
financial year. One year is a reasonable length of time for families to lodge a
claim for family and child care payments or to finalise their family tax benefit
entitlements for the previous financial year. The amendment to the claim and
reconciliation period is expected to encourage behavioural change.
The change to the affected time periods also takes into account that, in some
situations, families may have difficulties meeting the one-year period
(for example, in the case of a natural disaster). In these situations, families
will be able to access an extended period of up to the end of the second
financial year to lodge claims or meet requirements.
Rights of children deprived of their family environment
Article 20 (1) of the CRC provides that `a child temporarily or permanently
deprived of his or her family environment, or in whose own best interests
cannot be allowed to remain in that environment, shall be entitled to special
protection and assistance provided by the State'.
The increased rate of family tax benefit Part A associated with the adoption or
placement into care of a child ensure that children adopted by a family,
or entrusted into the care of a family for at least 13 weeks within the first year
of the child's life, receive special protection and assistance, by maintaining the
same higher payment of $2,000 for the first child adopted or entrusted into
care as for the first child born to a family.
7
Statements of compatibility with human rights
Right to maternity leave
Article 10 (2) of the ICESCR states that `Special protection should be
accorded to mothers during a reasonable period before and after childbirth.
During such period working mothers should be accorded paid leave or leave
with adequate social security benefits'.
The amendments to the work test recognise that special protection should be
accorded to mothers after childbirth by making it easier for mothers who have
children close together to access the Paid Parental Leave scheme to take
time off work and care for their child.
Conclusion
The amendments in Schedules 2A and 2B are compatible with human rights
because they advance the protection of human rights and, to the extent that
these changes limit access to family and parental payments, these limitations
are reasonable and proportionate.
8
Statements of compatibility with human rights
Family Assistance and Other Legislation Amendment Bill 2013
Other amendments (Schedule 3)
This Schedule is compatible with the human rights and freedoms recognised
or declared in the international instruments listed in section 3 of the Human
Rights (Parliamentary Scrutiny) Act 2011.
Overview of Schedule 3
This Schedule makes some clarifying and technical amendments to portfolio
legislation, consistent with intended policy.
For example, amendments to schoolkids bonus provisions ensure FTB
children aged under 16 who have already commenced primary or secondary
school, but are unable to participate for a period due to special circumstances,
are still able to receive schoolkids bonus. Minor amendments are also made
to clarify the periods within which customers need to notify that they are
engaging in eligible study.
Amendments to payment arrangements for the clean energy supplement
under the family assistance law ensure that, in some cases, an individual can
be paid their clean energy supplement arrears straightaway, instead of having
to wait until the end of the quarter. Another amendment removes an anomaly
that prevents a member of a couple from being entitled to a clean energy
advance top-up in certain situations.
It is also clarified that social security and veterans' entitlements customers
who decide to end payment on a quarterly basis of clean energy supplement,
pension supplement or seniors supplement do not have to wait until the end of
the quarter to be paid arrears. Other minor amendments give effect to the
policy intention of ensuring that customers receiving the clean energy
supplement receive their full entitlement.
Human rights implications
This Schedule is likely to engage the following human right:
Right to social security
The schoolkids bonus amendments promote the right to social security under
Article 9 of the International Covenant on Economic, Social and Cultural
Rights (ICESCR) and Article 26 of the Convention on the Rights of the Child
(CRC) as they extend access to schoolkids bonus for a small group of
children who are already in study but prevented from participating for a period
due to special circumstances.
9
Statements of compatibility with human rights
Current arrangements for schoolkids bonus allow for indefinite backdating of
payments for some income support recipients who are in study but do not
provide study details until a later time. The amendments allow a reasonable
period of backdating for these students:
Where the student is entitled to an income support payment, they are
able to provide these details until the end of the calendar year to
receive backdated schoolkids bonus amounts for that calendar year.
Where the student attracts family tax benefit, study details must be
provided before the end of the second financial year after the financial
year in which the child was studying. This two-year period is in line
with the claim period for family tax benefit.
To the extent that these changes limit access to schoolkids bonus payments,
these limitations are reasonable and proportionate and still allow a generous
amount of time for payment recipients to provide study details and access
backdated payments.
The social security and veterans' entitlements quarterly supplement
amendments are consistent with the right to social security, as they will
make sure these customers receive their full and correct entitlements, and
remove a current obstacle to those entitlements being received as early as
possible, thereby potentially alleviating financial pressures for those
customers.
No applicable rights or freedoms engaged
The amendments relating to when a child is entrusted to the care of an
individual make changes to payment arrangements to ensure earlier access
and does not change eligibility for or rates of payments. As such, those
amendments do not engage any of the applicable rights or freedoms.
Conclusion
This Schedule is compatible with human rights because, where applicable
rights or freedoms are engaged, it advances the protection of human rights
and, to the extent that these changes limit access to schoolkids bonus
payments, these limitations are reasonable and proportionate.
Minster for Families, Community Services and Indigenous Affairs,
Minister for Disability Reform, the Hon Jenny Macklin MP
10
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