Bills Digest no. 151 2005–06
Families, Community Services and Indigenous Affairs and
Other Legislation (2006 Budget and Other Measures) Bill
2006
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Concluding Comments
Endnotes
Contact Officer & Copyright Details
Passage
History
Families, Community Services and
Indigenous Affairs and Other Legislation (2006 Budget and Other
Measures) Bill 2006
Date introduced: 25 May 2006
House: House of
Representatives
Portfolio: Families,
Community Services and Indigenous Affairs
Commencement: The
commencement dates for all of the schedules in the Bill are set
out in the Table in Item 2 of the Bill.
To provide legislation to give effect to several government
initiatives announced in the 2006-07 Budget and also some other
government initiatives. In summary these initiatives are:
- The one-off raising of the Family Tax Benefit Part A (FTB-A)
income test free area,
- Expanded access to the Large Family Supplement (LFS) from
families with four or more children to families with three or more
children,
- Expanded access to the Utilities Allowance (UA) to persons
under Age Pension age who are in receipt of either Mature Age
Allowance (MAA), Widow Allowance (WA) or Partner Allowance
(PA),
- The introduction of the new Australian Government Disaster
Recovery Payment (AGDRP) replacing the current Disaster Relief
Payment (DRP),
- Allowing access to the maintenance income test free area for
past years when maintenance income for passed years is received in
a lump-sum payment,
- Expanded access to the Carer Payment (CP) to carers of a
disabled child aged under 16,
- Allowing the establishment of special disability trusts in
which families can place income to provide for the future needs of
a severely disabled person and have the money in the trust exempted
from the income and asset tests,
- Changes to governance arrangements of the Australian Institute
of Family Studies (AIFS), and
- Minor amendments to family assistance law.
2006-07 Budget announcement
The one-off raising of the FTB-A income test free area to $40
000 was announced by the government in the 2006-07
Budget.(1) The initiative follows on from (and now
overrides) a similar initiative in the 2005-06 Budget, when the
FTB-A income test free area was raised from $33 361 per annum $37
500 per annum to take effect from 1 July 2006.(2) That
2005-06 Budget change to the FTB-A income test free area has been
legislated(3) for but this proposal will override that
change.
The Budget papers estimate this measure will cost an additional
$999.3 million over four years, made up of an additional $90.8
million for those who receive their FTB-A through the Australian
Tax Office (that is those who claim in their tax assessment at the
end of the year) and $85.8 million to cover the flow on costs for
the increased access for families to a Health Care Concession
card.(4) This leaves $822.7 million being expended to
those families who claim their FTB-A by way of fortnightly payments
through the Families, Community Services and Indigenous Affairs
(FCSIA) portfolio.
The Budget papers estimates this initiative will increase the
amount of FTB-A received for over 480 000
families.(5)
The FTB income supplement payments for families with dependent
children (FTB-A and FTB-B) were introduced from 1 July 2000, as the
then new income supplement payments for families with children.
They were introduced as a part of the A New Tax System (ANTS)
changes.(6) FTB-A and FTB-B replaced a range of income
supplement and tax assistance arrangements for families, being
Family Allowance, Family Tax Payment Parts A and B, Family Tax
Assistance Parts A and B, Guardian Allowance, the Dependant Spouse
Tax Rebate and the Sole Parent Tax Rebate.
FTB-A can be payable (subject to the income test) to a person if
they:
- have a dependent child under 21 (including a foster child),
or
- have a dependent full time student aged 21 to 24, and
- have income under a certain amount, and are living in
Australia, and
- are either an Australian citizen, a New Zealand citizen, the
holder of a permanent visa or the holder of certain temporary
visas.
The FTB-A income test looks at the adjusted taxable income of
the family and where income is below upper cut-off limits (see
Table 1 below), either a part-rate or a full rate of FTB-A can be
paid. The rate of FTB-A is dependent on the level of family income
and how many qualifying children the family has and the ages of the
children.
($pa) 2005-06 year(7)
| |
No of children
aged 18 - 24 years
|
|
No
children
0 - 17 years
|
Nil
|
One
|
Two
|
Three
|
|
Nil
|
|
$93 465
|
$104 147
|
$133 870
|
|
One
|
$92 139
|
$102 821
|
$113 503
|
$125 013
|
|
Two
|
$101 495
|
$112 177
|
$123 687
|
$135 196
|
|
Three
|
$101 495
|
$122 361*
|
$133 870*
|
$145 380*
|
* Income limit is higher for three children aged 13-15
The FTB-A income test has a free area. This is the amount of
annual income a family can have before the maximum FTB-A rate is
reduced. Currently, for the 2005-06 year the FTB-A income test free
area is $33 361. This is the amount proposed in this initiative to
be raised to $40 000 per annum to start from 1 July 2006, so will
therefore apply to the 2006-07 year.
Income above the free area amount ($33 361) reduces the maximum
FTB-A rate by 20 cents in every dollar until the payment rate
reaches the base rate of FTB-A (see Table 2 below).
($pa) 2005-06
year(8)
| |
No of children
aged 13 - 15 years
|
|
No
Children
0 - 12 years
|
Nil
|
One
|
Two
|
Three
|
|
Nil
|
|
$50 260
|
$67 160
|
$84 059
|
|
One
|
$45 479
|
$62 378
|
$79 278
|
$96 177
|
|
Two
|
$57 597
|
$74 496
|
$91 396
|
$108 295
|
|
Three
|
$69 715
|
$86 614
|
$103 514
|
$120 413
|
FTB-A rate stays at that base rate until family income reaches
$86 213 a year (plus $3 431 for each child after the first).
Thereafter the FTB-A base rate is reduced by 30 cents for every
dollar over that amount until payment reaches nil (see Table 1
above).
Currently, the FTB-A income test free area is indexed to
movements in the CPI once a year (1 July).(9) The
indexation is to CPI increase in the 12 month period ending on the
preceding December. As with the previous Act passed by the
Parliament in 2006 that raised the FTB-A income test free
area,(10) this Bill does not make any changes to this
indexation arrangement and therefore the new higher free area will
also continue to be indexed annually to the CPI.
The FTB payments (FTB-A and FTB-B) have seen substantive
adjustments to their income testing arrangements since they were
introduced in July 2000, as a part of the ANTS package of
initiatives.(11) For FTB-A the major change was the
reduction in the FTB-A income test taper rate from 30 per cent down
to 20 per cent, announced in the 2004-05 Budget, that took effect
from the 2004-05 year.(12) The biggest single adjustment
to the FTB-B was announced in the 2004-05 Budget, in which the
FTB-B income test free area was doubled to $4 000 a year and the
income test taper rate was reduced from 30 per cent down to 20 per
cent.(13)
It is a bit of a surprise that the government announced in the
2006-07 Budget this further one-off increase in the FTB-A income
test free area, having previously done the same in the 2005-06
Budget. Again, as with the first announcement, the government is
concerned that the FTB income test arrangements complement the
Welfare to Work initiatives they announced in the 2005-06 Budget,
which are to commence from 1 July 2006.(14) The
government is concerned that if it is asking FTB recipients on an
income support payment to work more, to be more self-supporting,
that they should remove or reduce some of the financial
disincentives to earning more income from employment. This refers
to the high effective marginal tax rates (EMTR) faced by FTB
recipients as they commence to work, or work more hours thereby
earning increasing levels of income and at the same time as
government assistance is removed and they are required to pay more
in tax.(15) The National Centre for Social and Economic
Modelling (NATSEM) studies indicate that for some, after government
financial assistance is withdrawn and more tax paid, a person, can
be left with only 20 or 30 cents in their hand for each extra
dollar earned.(16)
2001-02 to 2004-05
by rate of payment(17)
|
FTB (A)
Fortnightly Instalment Customers by Payment Rate Type
|
2001-02
|
2002-03
|
2003-04
|
2004-05
|
|
FTB (A) payment
rate
|
As at 28/06/2002
|
As at 27/06/2003
|
As at 25/06/2004
|
As at 24/06/2005
|
|
Total
|
1 795 355
|
1 783 423
|
1 809 122
|
1 828 495
|
|
Maximum
Rate
|
620 354
|
615 207
|
615 831
|
610 995
|
|
Broken
Rate
|
431 552
|
427 482
|
423 531
|
536 838
|
|
Basic
Rate
|
708 709
|
701 280
|
721 391
|
617 879
|
|
Tapered Base
Rate
|
34 233
|
39 277
|
46 968
|
62 549
|
|
Unknown
|
507
|
177
|
1 401
|
234
|
The reduction in the numbers on the maximum rate mirrors the
overall reduction in the numbers on working age income support
payments like Newstart Allowance over the same period. This
reflects the reduced numbers of unemployed and increased employment
participation rates. It also reflects the fact that the rate and
income test limits for FTB-A are indexed once a year to the CPI,
whilst average weekly earnings (AWE) have been increasing at a
greater rate over the period and so less persons are entitled to
the maximum rate because their incomes have increased.
The numbers on the broken rate have increased by over 100 000 in
the period 2001-02 to 2004-05, especially in the last year. The
decline to the 2003-04 year reflects increased earnings by FTB-A
recipients. The last year increase reflects the reduction in the
FTB-A income test taper rate from 30 per cent down to 20 per cent,
announced in the 2004-05 Budget, that took effect from the 2004-05
year.(18)
The numbers on the basic rate was increasing in the first three
years reflecting the CPI and AWE relationship described above. The
sharp drop in the 2004-05 year reflects the reduced taper rate to
20 per cent allowing more on to the broken rate.
Who benefits from the raising of
the FTB-A income test free area?
The proposed increase in the FTB-A income test free area will
mainly see families who qualify for a part (broken) rate of FTB-A
receive an increase in assistance. This is because the raising of
the free area will see a greater amount of their income being
disregarded. For those families on maximum rate FTB-A (as their
income is below the free area), the raising of the free area does
not provide any immediate increase in assistance.
There is the potential for families on maximum rate to benefit
if they earn more income and their income exceeds the free area
limit. These families will be able to earn more income and still
receive maximum rate FTB-A and will also be able to receive more
income before they reach the level where they are only entitled to
the basic rate.
This initiative to expand access to the LFS to families with
three or more children was announced by the government in the
2006-07 Budget.(19)
The Budget papers anticipate an extra cost of $496.7 million
over four years from 1 July 2006.(20)
Currently, LFS is paid to 100 000 FTB-A eligible families with
four or more children. The Budget papers estimate this initiative
will expand access to the LFS to some 440 000 FTB-A
families.(21)
Currently, to be eligible for the LFS a family must have four or
more children for whom they receive FTB. LFS is
paid at $9.52 a fortnight for each child after the third and this
is paid on top of any FTB-A paid.
|
Number of children
|
LFS each fortnight
|
LFS each year
|
|
4
|
$9.52
|
$248.20
|
|
5
|
$19.04
|
$496.40
|
|
6
|
$28.56
|
$744.60
|
|
7
|
$38.08
|
$992.80
|
This government initiative to expand
access to the UA was announced in the 2006-07
Budget.(22) It is proposed to pay the UA to those
persons qualified to receive the Mature Age Allowance (MAA), the
Widow Allowance (WA) and the Partner Allowance (PA) from 1 July
2006.
In addition, the initiative proposes a one-off payment of UA, to
be paid at the maximum rate of UA ($102.80), to each household with
a person eligible for either the MAA, the WA or the PA on 9 May
2006.
The Budget papers estimate the cost of the on-going access to
the UA for MAA, WA and PA recipients from 1 July 2006 to be $27.6
million over four years commencing from the 2006-07
year.(23) The extra cost for the one-off UA payment is
estimated to be $8 million.(24)
UA was introduced with the passage of the Family and
Community Services and Veterans' Affairs Legislation Amendment
(2004 Election Commitments) Act 2004.(25) The
government s justification for the UA was set out in their 2004
election policy platform, being:
older Australians on income support receive access
to one of a number of concession cards that provide access to
cheaper prescriptions and a range of other benefits. Nonetheless,
the Coalition recognises that some older Australians who rely on
income support payments can experience difficulty in saving up to
pay regular household bills such as the gas or electricity
bill.(26)
The Explanatory Memorandum explains that MAA, WA and PA
recipients are like age pension recipients in that they are
required to meet a no recent workforce experience requirement to
qualify for payment.(27) They are therefore by inference
probably long-term income support recipients and like age
pensioners should receive the benefit of UA.
The number of MAA, WA and PA recipients by electorate is
available at the Department of Human Services
website.(28) There have been no more new grants of MAA
or PA since 20 September 2003 and no more new grants of WA after 1
July 2005, unless the woman was born on or before 1 July 1955.
The government announced the initiative to introduce the new
AGDRP in the 2006-07 Budget.(29)
The AGDRP is estimated to cost $13.1 million over four
years.(30) This is just a cost estimate for Budget
purposes as the future incidence of disasters and the numbers
affected is not known.
The AGDRP is to provide a one-off payment of $1 000 per adult
and $400 per child in recognition of the trauma and distress
experienced by those affected by a disaster and will be exempt from
the pension/allowance income and asset tests.(31) The
Bill makes no provision for these payments to be indexed but the
Explanatory Memorandum explains that the Bill empowers the Minister
to increase the rate amounts by way of a legislative
instrument.(32)
The AGDRP Budget announcement detailed that the proposed new
payment would be effected by amending and replacing the current
provisions in the Social Security Act 1991 (SSA) that
provide for the current DRP.(33) This essentially means
the AGDRP will replace the current DRP with different payment rates
and different qualification requirements. Currently, the DRP is
payable to a person who has, because of a disaster, suffered:
- severe damage to their principal place of residence,
and/or
- a significant interruption to their source of livelihood,
and
- when the person was affected by the disaster, he or she:
- was residing in Australia, and
- was not an unlawful non-citizen within the meaning of the
Migration Act 1958.
DRP is paid as a one-off lump-sum payment. A person who is
receiving a pension or benefit and meets the criteria for DRP can
receive DRP in addition to their regular pension/benefit
payments.
The rate of DRP is equivalent to the sum of the fortnightly rate
of the following components, as they apply to the claimant s family
circumstances:
- basic pension rate - the rate for a single person or the
combined rate of a couple, and,
- maximum rate FTB-A less base rate FTB-A for the claimant s
children under 16 years, and
- the maximum rate of rent assistance (RA).
For example, based on payment rates as at May 2006, a married
couple with 2 children aged 9 and 14 years would receive a DRP
of:
- $834.40 maximum combined partnered rate of pension,
- $222.60 maximum FTB-A rate less the base rate of FTB-A for the
two children aged 9 and 14 years, and
- $118.30 maximum rate of RA
- A total $1 175.30
Under the proposed AGDRP, this same couple would receive $2 800
made up of $1 000 per adult and $400 per child.
DRP is not income or asset tested. If a person is already
receiving a pension or benefit and they qualify for DRP, the
disaster payment is paid in addition to their regular payments.
Under the SSA, for DRP to be paid, the Minister for FCSIA must
declare, by notice in the Gazette, that a disaster is a major
disaster for the purposes of the SSA.(34) There are
guidelines in the SSA as to what circumstances a Minister should
declare as a major disaster. DRP cannot be paid without this
declaration. Under the current section 1061K in the SSA the
important words are:
(i) a person's principal residence is severely damaged; or
(ii) there is a
significant interruption to a person's source of
livelihood;(35)
There have been criticisms with this current DRP qualification
requirement that it is too narrow and not all persons adversely
affected by a disaster have had either their residence severely
damaged or a significant interruption to their livelihood.
In the Bill the proposed new section 1061L inserts a different
definition of adversely affected than is in the current section
1061K of the SSA. The new section 1061L will essentially empower
the Minister to determine the meaning of adversely affected from
disaster to disaster. This will potentially see a broader
requirement than currently exists. Also, this will give greater
flexibility to the Minister to declare that the AGDRP can be
provided than has applied in the past with Ministerial declarations
about DRP. The Bill does not describe what sort, or magnitude, or
type of disasters will or will not be declared sufficient to
provide for the AGDRP, rather it just states the person should be
adversely affected by a major disaster. However, there is some
description in the Explanatory Memorandum as to which sort of
events are to be regarded as adversely affecting a
person.(36)
In the Budget papers announcing the AGDRP, it states that the
Prime Minister, in consultation with the Minister will determine if
the AGDRP is to be paid.(37) In this Bill, there are no
provisions providing for the declaration of the AGDRP to be made by
the Prime Minister. Rather, the Bill refers to the Minister as it
currently does for DRP. Under the SSA this is the Minister for
FCSIA. One must presume that the administrative process will be one
of the Prime Minister and the Minister for FCSIA consulting but the
legal power for declaring that the AGDRP can be paid under the SSA
will remain with the Minister for FCSIA.
For the current DRP legislation, section 1061K requires the
person be an Australian resident to qualify for DRP.(38)
The Bill proposes to allow a payment of AGDRP to an Australian
citizen who is not a resident of Australia.(39) There is
no description or definition of who these persons may be just an
empowering of the description to be made by way of a legislative
instrument.(40) In short this means the Minister will be
able to make individual declarations of qualification by way of a
legislative instrument (to be tabled in the Parliament) on a
case-by-case basis. However, this legislative instrument is not
subject to section 42 of the Legislative Instruments Act
2003 and therefore is not disallowable by the
Parliament.(41) The amount of AGDRP for a person who is
an Australian citizen but not an Australian resident will be
determined by the Minister, again by way of a legislative
instrument.
The provisions presented in Schedule 4 for the
new AGDRP provide for much more discretionary and flexible decision
making by the Minister than the current DRP provisions in the SSA.
Also for the first time there are provisions for payments to
individuals adversely affected by disasters residing overseas.
This government initiative to allow resident parents access to
unused maintenance income test credits from past years was
announced in the 2005-06 Budget.(42)
The Budget papers estimate the cost of this initiative to be
$54.8 million over four years.(43)
Income received in the form of maintenance from a non-resident
parent (payer) by a resident parent (payee) is not lumped in with
other sources of income, rather it is only counted against the more
than minimum rate of FTB-A, with a special free area and taper
rate. Income from maintenance has its own separate income test, see
the section below on the maintenance income test. Maintenance is
not regarded as income for pensions or allowance income support
payments and therefore has no effect on the rate of these payments.
There are a few minor exceptions to this and maintenance is
regarded as income for youth allowance, ABSTUDY and Assistance for
Isolated Children purposes.
The origins of the special maintenance income test lies in the
significant reductions in assistance that some payees used to
suffer, when receiving large amounts of maintenance, especially
non-cash maintenance. Prior to January 1993, maintenance income was
included with all other income and applied under the general income
test for pensions and allowances. This meant that in cases where a
large amount of maintenance income was received (commonly non-cash
maintenance), the payee could have their income support payment
significantly reduced or even precluded. This was an undesirable
result, with the maintenance recipient often left with no on-going
means of support, having received a large amount of in-kind
maintenance and little or no cash. Originally there were ceilings
or caps allowed on the provision of non-cash maintenance, but later
there were changes to the treatment of maintenance, in terms of the
payments affected and how the income test was applied.
A common example of non-cash maintenance received that precluded
access to income support was expensive boarding school fees paid
for several children. From January 1993, maintenance received had a
special income test and only affected more than minimum rate of
Family Allowance (FA), now more than minimum rate of FTB-A. The
partial or total loss of more than minimum rate FTB-A, being income
supplement not income support, is less of a problem than the loss
of income support.
Maintenance may include payments of cash, including lump-sums,
non-cash amounts and for example, payments made to third parties,
such as payments of mortgage or rent or school fees. The
maintenance income test only applies if the person is eligible for
more than the base rate of FTB-A.
|
Status
|
Maintenance
Received
(per year)
|
|
Single parent, or one of a
couple receiving maintenance
|
$1 182.60
|
|
Couple, each receiving
maintenance
|
$2 365.20
|
|
For each additional
child
|
$394.20
|
Maintenance over these amounts may reduce FTB-A by 50 cents in
the dollar, until the base rate of FTB-A is reached.
Currently, where arrears of several years of maintenance is paid
in one year, the payee can only take advantage of one maintenance
income test free area in the year they receive the lump-sum. This
initiative proposes to alter the maintenance income test rules so
that the payee can have the advantage of the maintenance income
test free areas for each year that the arrears of maintenance is
being paid.
There are many different examples of how the maintenance income
test free area credit is designed to work in the Explanatory
Memorandum.(44) A simple example is set out below.
If $8 000 maintenance is paid (in the 2005-06 year) as a
lump-sum being for four years maintenance arrears, the payee can
only currently discount one free area of $1 182.60 in the year the
lump-sum is received. This leaves $6 817.40 to reduce the annual
rate of FTB-A (for the 2005-06 year) payable by $3 408.70. This is
different if the maintenance had been paid over each of the 4 years
that it was owed, when the payee could take advantage of the
maintenance income test free area for each year. The payee could
take advantage of four years of free areas being $1 182.60 for
05-06, $1 149.75 for 04-05, $1127.85 for 03-04 and $1 095.00 for
02-03, a total of $4 555.20. Then the $8 000 arrears of maintenance
received in 2005-06 would only reduce the FTB-A rate by $1
722.40.
To be able to gain access to the maintenance income test free
areas for each year of arrears of maintenance received the payee
will need to be:
- registered with the Child Support Agency (CSA), and
- eligible for FTB.
This is a beneficial initiative that has long been asked for by
individual resident parents and resident parents representative
groups.
The government announced the expansion of access to the Carer
Payment (CP) caring for a disabled child on 12 September
2005.(45)
This announcement was in part due to a response to concerns
being expressed about the capacity of parents to comply with their
new mutual obligation requirements arising from the Welfare to Work
changes introduced by the Government in the 2005-06
Budget.(46) Concerns were being expressed that parents
caring for a child with a severe disability, might be asked to look
for at least 15 hours a week work, and would be disadvantaged. Some
of these concerns were expressed to the Senate Community Affairs
Legislation Committee when it examined both the Employment and
Workplace Relations Legislation Amendment (Welfare to Work and
Other Measures) Bill 2005(47) and the Family
and Community Services Legislation Amendment (Welfare to Work) Bill
2005. The Senate Community Affairs Legislation Committee
reported on its examination of these Bills in November
2005.(48)
The government detailed in an answer to a question on notice
asked at Senate Estimates hearings for the 2005-06 Budget by
Senator Claire Moore on 3 November 2005, that it anticipated the
expanded access to the CP caring for a child will see the extra
number of recipients as 3 700 in 2006-07, 290 in 2007-08, 310 in
2008-09 and 340 in 2009-2010.(49)
The 2006-07 Budget papers estimated the extra cost for this
initiative will be $21.5 million in 2006-07, $33.0 million in
2007-08, $37.6 million in 2008-09 and $42.4 million in
2009-10.(50)
The number of recipients of CP caring for a child was 1 743 in
2003, 1 604 in 2004 and 2 155 in 2005.(51) In 2004-05
there were 4 293 claims for CP caring for a child of which 3,791
(88 per cent) were rejected.(52) The reason there are so
few recipients of CP caring for a child and why so many claims are
rejected is due to the very strict disability requirements and/or
care needs for the child. See Current requirements for CP
caring for a profoundly disabled child below.
CP caring for a disabled child was introduced from 1 July 1998
with the passage of the Social Security and Veterans' Affairs
Legislation Amendment (Budget and Other Measures) Act
1997.(53) With the introduction of CP caring for a
child, for the first time an income support payment was provided to
a parent caring for a child. Hitherto, CP had only been payable to
an adult caring for an adult. Governments have always been cautious
about providing an income support payment to an adult caring for a
child. They have recognised that it can be difficult
differentiating between the care being provided for a very young
child, because the child is young and the adult is performing the
normal accepted parental care role, as opposed to the care being
provided because the child is so disabled and/or in need of extra
care. Governments have been cautious about setting a precedent of
providing income support to an adult providing parental care
duties.
However, when the CP caring for a child was introduced in 1998,
it was in recognition that there were some adults required to
provide so much care for a disabled child that they could not
otherwise support themselves by employment. The child
care/disability requirements were deliberately made very strict to
ensure the payment was targeted to those cases where the
care/disability requirements were very onerous, that is a
profoundly disabled child see Child with a profound
disability below.
Currently, a person may get CP - caring for a child with a
disability if they provide constant care in the home of the child
and that child is/are:
- a child under the age of 16 with a profound disability or
medical condition who has extremely high care needs, or
- two or more children under the age of 16 with severe
disabilities or medical conditions who together require an
extremely high level of care.
Where only one child is being cared for, the child must be one
with a profound disability .
For the purposes of CP, a child meets the definition of a child
with a profound disability if:
- the child has a severe multiple disability or the child has a
severe medical condition, and
- because of that disability or condition, needs continuous
personal care for a minimum of 6 months unless the child's
condition has been certified by a medical practitioner as having a
terminal illness for which palliative care has replaced treatment,
and
the child's disability or condition must include at least 3 of
the following:
- the child receives all food by nasogastric or percutaneous
enterogastric tube,
- the child has a tracheostomy,
- the child must use a ventilator for at least 8 hours a
day,
- the child has faecal incontinence day and night, and if the
child is under 3 years old, is expected to have faecal incontinence
day and night at the age of 3,
- the child cannot stand without support, and if the child is
under 2 years old, is expected to be unable to stand without
support at the age of 2,
- a medical practitioner has certified in writing that the child
has a terminal condition for which palliative care has replaced
active treatment, or
- the child requires personal care on 2 or more occasions between
10pm and 6am each day, and if the child is under 6 months old, is
expected to need personal care between 10pm and 6am each day at the
age of 6 months, or
a medical practitioner has certified in writing that:
- the child has a terminal condition and is in the advanced phase
of that condition, and
- the child has a life expectancy measured in weeks or months or
it is possible that the child will live for more than 12 months but
unlikely that he or she will live for a period substantially
greater than 12 months, and
- because of the terminal condition the child will need
continuous personal care for the remainder of his or her
life.(54)
The proposal in this Bill is to expand the
requirements of caring for a profoundly disabled child in
sub-section 197(2) of the SSA to include a child with behavioural
characteristics causing unsafe behaviour due to severe
intellectual, psychiatric or a behavioural disability. This is to
be achieved by inserting a new sub-section 197(2AA) in the SSA
which will set out an additional set of circumstances where a carer
of a profoundly disabled child may qualify. In brief, the new set
of requirements are:
- the child has a severe intellectual, psychiatric or behavioural
disability, and
- the child needs continuous personal care (which can include
supervision) for 6 months or more, or
- if the child s condition is terminal and the child s life
expectancy is less than 6 months, for the remainder of the child s
life.
- the child is aged 6 or more and under age 16, and
- One of the following descriptions applies:
- The child repeatedly engages in dangerous behaviour that poses
a significant immediate or long term risk to the child s own health
or safety (including self-harming behaviours or absconding or
behaviours of a similar extreme nature) that, without carer
intervention, would result in the child suffering injury that is
maintained or lasting or death, or
- The child repeatedly engages in aggressive or violent behaviour
that poses a significant risk to the health or safety of others or
that results in significant property damage (including arson or
repeated destruction of multiple household items or behaviours of a
similar extreme nature) and, due to these behaviours, the child is
regularly or permanently excluded from community programs,
activities, services or facilities (such as a special education
school or class or mainstream class, play group, pre-school, a
local swimming pool or shopping centre), or
- The child repeatedly engages in severe sexually deviant or
sexually inappropriate behaviour and, due to this behaviour, the
child is regularly or permanently excluded from community programs,
activities, services or facilities.
A further requirement is that the provision of continuous
personal care by the carer (which is a new requirement under
paragraph 197(2AA)(b)), severely restricts the carer s capacity to
undertake paid employment.
As with the current child with a profound disability
requirements in the SSA, to qualify as a carer for CP caring for a
disabled child, this proposed new qualification category is very
strict and only a few cases will meet the requirements. See
Anticipated numbers to benefit from the expanded access to
carer payment above. The requirements that the child is aged 6
to 16 and that the care requirements severely restricts the carer s
capacity to undertake paid employment have their connections to the
origins of this initiative arising out of the Welfare to Work
initiatives and the new obligations for parents.
This initiative to allow the establishment of special disability
trusts for the future care of a person with a severe disability was
announced by the Prime Minister on 13 October
2005.(55)
From September 2006, parents or other immediate family members
of a person with a severe disability, will be able to establish a
private trust ( special disability trust ) of up to $500 000 to
provide for the costs of the future care of the person. For these
trusts the income and asset tests rules and the gifting rules
normally applied under the SSA and the Veterans Entitlements
Act 1986 (VEA) will not apply. This means the income from the
trust will not affect the income support payment (commonly
Disability Support Pension (DSP)) of the person requiring care.
Also, gifts to the trust will not affect the gifting rules for the
assets test that would normally apply to the gifting person s Age
Pension or Service Pension. The $500 000 trust limit will be
indexed annually in line with the Consumer Price Index (CPI).
The number of persons who might benefit from this initiative has
not been provided by the government but the media release referred
to a cost figure of $200 million.(56)
The 2006-07 Budget papers estimated the extra cost for this
initiative will be $19.7 million in 2006-07, $69.7 million in
2007-08, $104.1 million in 2008-09 and $126.9 million in 2009-10
for the FCSIA portfolio.(57) The estimated extra costs
for the Veterans Affairs portfolio are $1.6 million in 2006-07,
$4.6 million in 2007-08 and $6.8 million in
2008-09.(58)
The provisions in Schedule 7 insert into the
SSA and the VEA a definition of a special disability trust . Some
of the requirements to be classified as a special disability trust
are:
- The beneficiary must otherwise qualify for DSP under the SSA or
invalidity service pension under the VEA. This essentially confines
the trusts to those providing for a person with a significant level
of disability and inability for work.
- The beneficiary would otherwise qualify any carer to CP or
carer allowance. This ensures that the trust refers to a person
where the care requirements for the beneficiary are
significant.
- The trust can only have one beneficiary.
- The sole purpose of the trust, as set out in the trust deed, is
for the care and accommodation needs of the beneficiary.
The assets of the trust must not include assets transferred in
by the beneficiary or compensation received for the beneficiary.
This ensures the beneficiary is not using the trust to hide assets
or monies they themselves have received to provide for their own
care.
The SSA and the VEA assets and income tests have rules to cater
for situations where a person gifts or deprives themselves of an
asset or income without adequate consideration. These rules are
called the deprivation rules. For the deprivation rules to apply it
must be shown that a person has destroyed or diminished the value
of an asset, or a source of income. A person disposes of an asset
or income when they:
- engage in a course of conduct that destroys, disposes of or
diminishes the value of their assets or income, and
- does not receive adequate financial consideration in exchange
for the lost asset or income.
For example, signing a document transferring legal title to land
and gifting it to another person to register the transfer is a
course of conduct that would be classified as deprivation.
The deprivation asset test rules are based on the principal that
a person should use their own resources to support themselves first
before calling on the taxpayer to provide them with assistance by
way of income support payments. Where a person does deprive
themselves of an asset without adequate consideration, the
deprivation rules may see the value of the asset maintained for up
to 5 years after the asset was disposed of.
There are provisions in Schedule 7 of this Bill
to not have the normal SSA and VEA deprivation rules apply where a
person places assets into an approved special disability trust .
Part 1 of Schedule 7 refers to the SSA and
Part 2 of Schedule 7 refers to the VEA. The limit
for the asset test deprivation disregard will be $500 000.
Individuals can put assets to a value of greater than $500 000 into
a special disability trust , but the disregard for the deprivation
provisions will be limited to $500 000.
Schedule 8 of the Bill proposes
to change the governance of the AIFS in line with the
recommendations of the Uhrig report, which was released on 12
August 2004.
The Coalition had flagged its intention to examine statutory
authorities and office holders in its 2001 election
platform.(59) On 14 November 2002, the Prime Minister
the Hon. John Howard, MP appointed Mr John Uhrig AC to review the
governance practices of statutory authorities and office holders,
particularly those agencies which impact on the business community.
The objective of the review was to identify issues concerning
existing governance arrangements and to provide policy options for
Government to gain the best from statutory authorities and office
holders and their accountability frameworks.(60)
As part of the review process, Mr Uhrig found there was no
universally agreed definition of corporate governance. The 2003
report provides the following definition:
in general terms, corporate governance encompasses
the arrangements by which the powers of those who implement the
strategy and the direction of an organisation are delegated and
limited to ensure the organisation s success, taking into account
the environment in which the organisation is
operating.(61)
The Prime Minister was provided with the Uhrig report in June
2003. The Uhrig report was released by the Minister for Finance and
Administration on 12 August 2004.
The Uhrig report recommended two templates be applied to ensure
good governance of statutory authorities:
agencies should either be managed by a Chief Executive Officer
(CEO) or by a board structure. Both templates detail measures for
ensuring the boundaries of responsibilities are better understood
and the relationship between Australian government authorities,
Ministers and portfolio departments are made
clear.(62)
Uhrig recommended that the selection of the management template
and financial frameworks to be applied should be based on the
governance characteristics of a statutory
authority:(63)
The Financial Management and Accountability
Act 1997 (FMA) should be applied to statutory authorities
where it is appropriate they be legally and financially part of the
Commonwealth and do not need to own assets. This includes
Budget-funded authorities.(64)
Uhrig recommended that these organisations should
be governed by a CEO.
Uhrig further recommended:
The Commonwealth Authorities and Companies Act
1997 (CAC) should be applied to statutory authorities where it
is appropriate that they be legally and financially separate from
the Commonwealth.(65)
Uhrig recommended that these organisations should be governed by
a board.
In general Uhrig recommended that agencies which exclusively
manage Commonwealth appropriations should be represented and
governed by a CEO. A board structure is favoured if there is a
strong commercial focus to the organisation, or if the agency is
intergovernmental.
The FMA applies to Budget-funded authorities managed by a Chief
Executive Officer (CEO). The FMA establishes various management and
reporting responsibilities for the CEO (sections 44 46, 49 and 51),
as well as allowing the Minister to give guidelines to the CEO
(section 64).(66) Furthermore, FMA provides an
accountability framework for CEOs to manage agency resources.
The CAC applies to authorities that are corporate entities
managed by a board. It requires the head of the board to report to
the responsible Minister (sections 15-16), and to ensure that the
authority s activities comply with government policies (section
28).(67)
The amendments to the Family Law Act 1975 (FLA)
presented in Schedule 8 are to make the AIFS no
longer subject to the CAC but subject to the FMA. The functions of
the AIFS will not be changed but the responsibilities for the
proper carriage of these functions given to the director (CEO) of
the AIFS. The amendments in Part 1 of Schedule 8
remove the description of the AIFS board and insert the requirement
that there be a director. The Minister is then provided with powers
to appoint the AIFS director and to direct the director by way of a
legislative instrument.(68)
The proposed amendments to the governance rules for the AIFS are
in line with other like governance changes that have taken place
since the government s adoption of the recommendations in the Uhrig
report. The main example was the Human Services Legislation
Amendment Act 2005, which saw the governance rules for
Centerlink and the Health Insurance Commission changed from boards
to a director with the Minister having direct powers to appoint the
director and to give specific directions to the
director.(69)
Certainly, the direct powers of the Minister about the running
of the AIFS are enhanced with these changes having the power to
appoint a director and to give specific directions to the director.
In the past these powers substantially rested with the board.
The amendments to the FAA presented in Schedule
9 follow from amendments passed by the parliament in 2005
regarding the treatment of FTB-B recipients returning to work.
FTB-B is paid to a sole parent or to the lowest income earner of
a partnered couple. The income test for FTB-B is based on only the
claimant s income alone. So for a sole parent it regards the sole
parent s income. For a partnered couple, the FTB-B income test is
based on the lowest income earner of the couple and the highest
income earner s income is disregarded.
Where the FTB-B claimant lodges their claims in their tax return
at the end of the year, their income for the year is known from the
tax assessment and the correct amount of FTB-B can be paid.
However, where the FTB-B claimant claims at the beginning of the
year (to be paid by fortnightly instalments during the year), their
FTB- rate is initially based on their income estimate when they
claim. If they then return to or commence paid work part way
through the year this can present problems. They could earn enough
income in the rest of the year to create an overpayment or even
preclude them from receiving FTB-B for the whole year and then end
up having a debt for the amount of FTB-B already paid. This became
a disincentive for partners to take up work opportunities.
Amendments were made to the application of the FTB-B income test
with the passage of the Family and Community Services
Legislation Amendment (Family Assistance and Related Measures) Act
2005.(70) These amendments to the Family
Assistance Act 1999 (FAA) in 2005 addressed the situation
where a parent could face the prospect of a FTB-B debt if they
commenced or returned to the workforce part way through a year. As
said above, FTB-B eligibility is assessed on an annual basis in
line with an estimate of income made at the start of the year.
These 2005 changes ensured that the parent commencing or returning
to work part way through the year retained their eligibility for
FTB-B for the part of the financial year before they return to
work. Their income only reduces entitlement for the period after
they return to work. These changes significantly reduced the
commence work or return to work financial disincentives faced by
parents in this situation.
Schedule 9 of the Bill presents further
amendments to the FAA in regards to the FTB-B income test where a
claimant returns to or commences work part way through the year.
The Explanatory Memorandum states that the proposed amendments are
made addressing the scenarios in a manner consistent with the
changes made in the 2005 FAA amendments.(71)
The amendments in Schedule 9 refer to FTB-B
claimants in the following situations:
- Where an FTB-B claimant lodges their claim in the second year
after the year for which the claim is being lodged. This refers to
the fact that a claim for FTB-B can be made up to two years after
the end of the financial year for the year being claimed. For
example, a claim for the 2003-04 year can be made up to 30 June
2006.
- FTB-B partnered claimants with multiple partners in a year for
which FTB-B is being claimed. The FTB-B return to work provisions
are meant to target the lower income earner of a partnership.
However, this can be complicated where a FTB-B claimant is the
lower income earner for one partner but the higher income earner
for the other partner in the same year. They should only be able to
gain the advantage of the FTB-B return to work provisions if they
return to work in the period when they are the lower income
earner.
- Where a partnered FTB-B claimant was the lower income earner in
a year but the main income earner in a second year, they should not
be able to gain advantage of the return to work provisions for
FTB-B, when they return to work in the second year.
In terms of the number of claimants affected, these amendments
will not affect many FTB-B claimants.
As discussed in Schedule 9 above, FTB can be
paid in two ways. One, by way of fortnightly payments during the
year with the payment rate based on the claimant s estimate of
their income for the coming year. Alternatively, FTB can also be
paid at the end of the year by claiming in the tax return and the
amount paid is based on the actual adjusted taxable income for the
year past as provided by the tax assessment.
Obviously the second method does not require an income estimate
as the year has passed and the actual adjusted taxable income is
known. The fortnightly instalments payment method requires the
claimant to make an estimate of their income for the coming year.
Most parents claim their FTB by way of fortnightly instalments
during the year, rather than claiming it in their tax return at the
end of the year.
CCB can also be paid in two ways. One, the claimant can claim
CCB as a lump-sum payment at the end of the year in their tax
return (as with FTB) and the amount paid is based on the actual
adjusted taxable income for the year past. Secondly, the claimant
can claim the CCB to be provided during the year and this is done
by way of reduced fees charged by the child care provider. The
reduced child care fee method of receiving CCB requires the
claimant to make an estimate of their income for the coming year.
Based on this income estimate a CCB rate assessment is made and the
entitlement is advised to the child care provider by Centrelink and
the provider reduces their fee by that amount.
As it applies for FTB, most parents claim their CCB by way of
payments direct to the child care provider, to be offset against
their child care fees (fee reduction) during the year, rather than
claiming CCB in their tax return at the end of the year.
In some cases, FTB or CCB claimants are unable to provide an
income estimate or the estimate is so inexplicably different from
the previous year s income that Centrelink considers the estimate
unsatisfactory. Estimates by claimants are often not updated from
year-to-year and are often inherently conservative. Inherently
conservative, as a lower estimate can realise a higher rate of FTB
or CCB payments during the coming year. In these cases, the power
for Centrelink to set an income estimate from the previous year
indexed against AWE was provided for with the passage of the
Family Assistance, Social Security and Veterans' Affairs
Legislation Amendment (2005 Budget and Other Measures) Act
2006.(72)
Schedule 10 of this Bill proposes minor
amendments to the FTB and CCB income estimate powers for
Centrelink, that were not provided for when the original
legislation was passed earlier in 2006.(73) These
amendments mainly concern the use of estimates situations where a
claimant partners or re-partners and the rate setting based on the
estimates of both their and their partner s income. The proposed
provisions allow for Centrelink to provide an income estimate for
the new or second partner.
In terms of the small number of claimants affected, these are
relatively minor amendments.
FTB and CCB debts can commonly arise where payment of FTB and/or
CCB is provided during the year based on an estimate of annual
income and the estimate understates the level of income actually
received during the year. Where payment was received during the
year, once the assessment of tax is done at the end of the year and
the actual adjusted taxable income for the year is known, if too
much FTB and/or CCB was paid during the year based on the income
estimate, then the excess payment is an overpayment and a debt.
Overpayments of FTB or CCB can be recovered from an income tax
refund owed to the claimant.
Schedule 11 of the Bill proposes to expand the
meaning of income tax refund in the Family Assistance
(Administration) Act 1999 (FAAA) to also include tax refunds
arising from tax offsets and refunds arising from excess payments
of tax like:
- an overpayment of income tax,
- an overpayment of the Medicare levy,
- an overpayment of repayments for debts arising from Higher
Education Scheme or the Student Financial Loan Scheme,
- tax offsets arising from private health insurance rebates,
- franking tax offsets, and
- tax offsets arising from qualification to the baby bonus.
This amendment makes the definition of income tax refund in the
FAAA refer to a wider range of events that can realise a tax refund
or tax owed by the tax office to the individual claimant.
This is a further adjustment to the FAAA in regards to the
recovery of FTB and CCB debts from tax refunds, like the adjustment
earlier in 2006 allowing for the recovery of CCB debts from FTB
arrears and tax refunds. This was provided for in the Family
Assistance, Social Security and Veterans' Affairs Legislation
Amendment (2005 Budget and Other Measures) Act
2006.(74)
Schedule 12 proposes to amend some of the
definitions in the FAA to reflect the recent changes to definitions
and terms used made by the Family Law Amendment (Shared
Parental Responsibility) Act 2005.(75) The
amendments are to also correct terms that were misdescribed. The
definitions to be amended in the FAA are:
- family law order,
- to have contact to be changed to spend time , and
Court order is being amended in the Child
Support Assessment Act 1989 (CSAA) to refer to section 4 of
the FLA.
Item 2 sets out the commencement dates for the
various Schedules and Parts in the Bill.
Item 1 sets the new FTB-A income test free area
to $40 000. Item 3 sets the timing for the new
income test free area to the 2006-07 year.
Items 1 and 2 alter the FAA to have
qualification to the LFS to refer to families with 3 or more FTB A
qualifying children.
Item 1 amends the SSA to add the receipt of
MAA, WA and PA to the qualifying payments for access to the UA.
Item 1 inserts the term adversely affected into
the general definitions section in the SSA being section 23(1).
Items 2 and 3 insert the term AGDRP into the
SSA.
Item 4 repeals the current section 36 in the
SSA, the major disaster section and replaces it with a new section
36, empowering the Minister to define and describe a major disaster
by determination and the determination is not a legislative
instrument.
Item 5 places new sections in the SSA for the
qualification for and rate of payment of AGDRP.
Items 6 exempts AGDRP as taxable income.
Item 19 inserts into the SSA amendments to
provide for AGDRP qualification in reference to disasters outside
Australia.
Item 20 inserts into the SSA amendments to
provide for a time limit of 6 months on claims for AGDRP, unless
special circumstances apply to a person.
Item 1 inserts a new term in the FAA being
maintenance income credit balance .
Item 2 inserts a new term into the FAA being
registered entitlement meaning the maintenance liable to be paid to
a registered person under the Child Support (Registration and
Collection) Act 1988 (CSRCA). This means that for maintenance
to receive the benefit of the maintenance income credit it must be
maintenance registered to be collected under the CSRCA.
Item 8 inserts new provisions into the FAA
setting out the accrual of a maintenance income credit balance and
how much the balance is and how it can be depleted.
Item 9 explains that the maintenance income
credit applies to FTB from the 2006-07 year. Item
10 explains what years prior to the 2006-07 year that can
be used to accumulate a maintenance income credit.
Item 2 inserts a new and additional description
of a profoundly disabled child in the SSA that may qualify a carer
for CP caring for a child. Item 4 inserts a
provision into the SSA stipulating that if the description of the
child in the new section 197(2AA) are met then also the care
requirements must severely restrict the carer s capacity to
undertake paid employment.
Item 1 inserts a description of immediate
family member in the definitions section of the SSA section 23(1)
for the purposes of the proposed special disability trusts
provisions. Item 3 follows this up with a
description of sibling . Item 2 inserts a
definition of principal beneficiary in the definitions section of
the SSA section 23(1) for the purposes of these proposed special
disability trusts provisions. Likewise Item 4
inserts a definition of special disability trust in the definitions
section of the SSA section 23(1) for the purposes of these proposed
special disability trusts provisions.
Items 7, 8 and 9 insert provisions providing
for the annual indexation of the maximum value allowed in a special
disability trust .
Item 13 inserts new provisions into the SSA
describing what a special disability trust must comprise of and
also the requirements for the trust beneficiary rules, the trust
purpose, the trust deed, the trustee, the trust property, trust
reporting and the trust audits. Item 13 also
inserts provisions for the attribution of trust income, the
treatment of income and assets and the treatment of transfers to
special disability trusts. There are also provisions dealing with
the exceeding of the current $500 000 limit and also transfers to
the trust by immediate family members and by trust beneficiaries or
partners.
The provisions in Part 2 basically mirror the
provisions in Part 1 but they are for the VEA. The income and asset
test rules for means tested income support payments provided under
the VEA (service pension, invalidity service pension and income
support supplement) are identical to the tests that are applied to
the means tested income support payments provided under the SSA.
Every attempt is made to align the tests to ensure there is equity
and parity of treatment across like means tested income support
payments. That is why the proposed amendments to the income and
assets tests in the SSA in Part 1 are mirrored to
the like VEA payments in Part 2.
Items 1 to 7 remove references to the AIFS
board from the FLA and inserts references to the position of
Director of the AIFS.
Item 9 inserts new sections empowering the
Minister to give the director directions by way of a legislative
instrument and the power to appoint the director for a period not
exceeding 5 years. The Minister is also empowered to dismiss the
director.
Part 2 contains provisions transferring the
assets, powers and responsibilities of the AIFS with a board to the
AIFS agency with a director.
Items 1 and 7 inserts a new sub-section
3B(3)(c) of the FAA which refers to what constitutes a return to
paid work in an income year. This new provision allows a claimant
to claim for the return to paid work provisions to apply when they
lodge their FTB-B claim in the second year.
Item 5 inserts provisions to cover situations
where there is more than one return to work in one year for a
secondary income earner with one child.
Item 8 applies provisions explaining that the
commencement of the application of the provisions in Schedule 9
will apply from the 2005-06 year onwards, subject to the
application of 29A(4A) and a return to work.
Item 1 inserts provisions empowering references
to an indexed estimate of the claimant and/or their partner in
determining a rate of FTB. Item 3 makes like
amendments to the FAAA for CCB.
Item 1 amends the FAAA references to an income
tax refund arising from refunds of tax offsets and also refunds of
tax overpayments.
Item 1 amends the FAA definition of family law
order , which is currently linked to section 60D of the FLA, to
linking it to section 4 of the FLA.
Item 2 replaces the reference to have contact
in the FAA to spend time in the FAA.
Item 3 amends the CSAA definition of court
order , which is currently linked to section 60D of the FLA, to
linking it to section 4 of the FLA.
This Bill presents proposed amendments to several different
acts, being the SSA, the FAA, the FAAA and the VEA. Generally,
almost all of the proposed Schedules will be seen as beneficial,
especially the one-off raising of the FTB-A income test free area
in Schedule 1 and the extension of access to the
LFS in Schedule 2.
The amendments presented in Schedule 4 to
introduce the AGDRP are a long overdue rationalisation of
Commonwealth disaster relief payments and will probably see greater
flexibility in providing for people who are adversely affected by
disasters, including for the first time, disasters occurring
overseas. The amendments presented in Schedule 5
to the application of the maintenance income test allowing the
accumulation of unused income test free area balances will be
welcomed by residential parents.
Likewise, the amendments presented in Schedule
6 to allow the expansion of access to the carer payment
for carers of severely disabled children to include behavioural
characteristics of the child causing unsafe behaviour due to severe
intellectual, psychiatric or a behavioural disability will be
welcomed.
- Department of Treasury, Budget Paper No. 2 Budget Measures
2006-07, Family Tax Benefit -increase Family Tax Benefit Part A
income threshold, Commonwealth Government, Department of Treasury,
Canberra, 9 May 2006, p. 215. http://www.aph.gov.au/budget/2006-07/bp2/html/bp2_expense-08.htm
- Peter Yeend, Family Assistance, Social Security and Veterans'
Affairs Legislation Amendment (2005 Budget and Other Measures) Bill
2006 , Bills Digest No. 104, 2005-06,
Parliamentary Library, Canberra, 2 March 2006. http://www.aph.gov.au/library/pubs/bd/2005-06/06bd104.htm
- ibid.
- Department of Treasury, Budget Paper No. 2 Budget Measures
2006-07, Family Tax Benefit -increase Family Tax Benefit Part A
income threshold, op. cit.
- ibid.
- Lesley Lang, Dale Daniels and Peter Yeend, A New Tax System
(Family Assistance) Bill 1999 , Bills Digest No. 175
1998-99, Parliamentary Library, Canberra, 10 May 1999.
http://www.aph.gov.au/library/pubs/bd/1998-99/99bd175.htm
- Centrelink, A guide to Australian Government payments
, 1 January 19 March 2006, C0029.0601, Canberra, 6 January
2006.
http://www.centrelink.gov.au/internet/internet.nsf/publications/co029.htm
- ibid.
- A New Tax System (Family Assistance) Act 1999, Schedule
4, Part 2, Sub-section 3(1) Item 13. http://www.facs.gov.au/faact/faasch62.htm#FAA-Schedule4-Clause3
- Peter Yeend, Family Assistance, Social Security and Veterans'
Affairs Legislation Amendment (2005 Budget and Other Measures) Bill
2006 , Bills Digest No. 104,
2005-06, op. cit.
- Lesley Lang, Dale Daniels and Peter Yeend, A New Tax System
(Family Assistance) Bill 1999 , Bills Digest No. 175,
1998-99, op. cit.
- 2004-05 Budget, Budget Paper No. 1.8, Department of Family
and Community Services Portfolio Budget Statements , More Help
for Families Changes to The Family Tax Benefit Part A Lump Sum
Payment and Reduction in the Taper Between Maximum and Base Rates,
pp. 52 53. op. cit.
http://www.facs.gov.au/internet/facsinternet.nsf/aboutfacs/budget/budget2004-pbs.htm#budget
- 2004-05 Budget, Budget Paper No. 1.8, Department of Family
and Community Services Portfolio Budget Statements , More Help
for Families Changes to The Family Tax Benefit Part B Increase in
Threshold and Reduction in Taper, p. 54. http://www.budget.gov.au/2004-05/pbs/html/index.htm
- Dale Daniels and Peter Yeend, Employment and Workplace
Relations Legislation Amendment (Welfare to Work and Other
Measures) Bill 2005 , Bills Digest No. 70,
2005-06, Parliamentary Library, Canberra, 6
December 2005. http://www.aph.gov.au/library/pubs/bd/2005-06/06bd070.pdf
- Matthew Toohey and Gillian Beer, Is it worth working now? The
financial impact of increased hours of work for mothers under
Australia's New Tax System , National Centre for Social and
Economic Modelling, Conference Paper CP 2003 022, December
2003, Canberra. http://www.natsem.canberra.edu.au/publication.jsp?titleID=CP0322
Gillian Beer, Work Incentives under a New Tax System: The
distribution of effective marginal tax rates in 2002 , National
Centre for Social and Economic Modelling, Conference Paper CP
2002 012, October 2002, Canberra. http://www.natsem.canberra.edu.au/publication.jsp?titleID=CP0212
- ibid.
- Senator the Hon. Kay Patterson, Minister for Family and
Community Services, Answer to a Question on Notice, from
Senator Chris Evans asked on 26 September 2005, Senate Hansard, 7
November 2005, p. 231. http://www.aph.gov.au/hansard/senate/dailys/ds071105.pdf
- 2004-05 Budget, Budget Paper No. 1.8, Department of Family
and Community Services Portfolio Budget Statements , More Help
for Families Changes to The Family Tax Benefit Part B Increase in
Threshold and Reduction in Taper, op. cit.
- Department of Treasury, Budget Paper No. 2 Budget Measures
2006-07, Family Tax Benefit extending the large family supplement,
Commonwealth Government, Department of Treasury, Canberra, 9 May
2006, p. 215. http://www.aph.gov.au/budget/2006-07/bp2/html/bp2_expense-08.htm
- ibid.
- ibid.
- Department of Treasury, Budget Paper No. 2 Budget Measures
2006-07, Utilities Allowance extension and one-off payment to
allowees with long term barriers to employment, Commonwealth
Government, Department of Treasury, Canberra, 9 May 2006, pp.
171-172. http://www.aph.gov.au/budget/2006-07/bp2/html/bp2_expense-08.htm
- ibid.
- ibid.
- Peter Yeend, Family and Community Services and Veterans'
Affairs Legislation Amendment (2004 Election Commitments) Bill 2004
, Bills Digest No. 66, 2004-05, Parliamentary Library,
Canberra, 1 December 2004.
http://www.aph.gov.au/library/pubs/bd/2004-05/05bd066.htm#Contact
- The Hon. Mr John Howard, MP,
Recognising senior Australians their needs and their
carers, Election policy platform , Liberal Party of
Australia, 2004 1 October 2004.
- Explanatory Memorandum, p. 5.
- Department of Human Services,
http://www.humanservices.gov.au/publications/electorate_data/cl.htm
- Department of Treasury, Budget Paper No. 2 Budget Measures
2006-07, Australian Government Disaster Recovery Payment,
Commonwealth Government, Department of Treasury, Canberra, 9 May
2006, p. 208. http://www.aph.gov.au/budget/2006-07/bp2/html/bp2_expense-08.htm
- ibid.
- ibid.
- Explanatory Memorandum, pp. 8 9.
- ibid.
- Major disaster
36.(1) The Minister may declare that a disaster that:
(a) caused a significant number of deaths, serious illnesses or
serious injuries; and
(b) caused severe and widespread damage to property;
is a
major disaster for the purposes of this Act.
- Qualification for disaster relief payment
1061K. A person is qualified for a disaster relief payment
if:
(a) because of a
major disaster:
(i) a person's principal residence is severely damaged; or
(ii) there is a significant interruption to a person's source of
livelihood; and
(b) when the person was affected by the disaster, he or she:
(i) was residing in
Australia; and
(ii) was not an unlawful non-citizen within the meaning of the
Migration Act 1958.
Note: for "major disaster" see subsection 23(1).
- Explanatory Memorandum, p. 8.
- Department of Treasury, Budget Paper No. 2 Budget Measures
2006-07, Australian Government Disaster Recovery Payment,
Commonwealth Government, Department of Treasury, Canberra, 9 May
2006, p. 208, op. cit.
- Qualification for disaster relief payment, op. cit.
- Sub paragraph 1061K(1)(b)(iv).
- Sub-section 1061K(2).
- Moira Coombs, Legislative Instruments Bill 2003 ,
Bills Digest No. 26 2003-04, Parliamentary
Library, Canberra,
8 September 2003.
http://www.aph.gov.au/library/pubs/bd/2003-04/04bd026.htm#Contact
- Department of Treasury, Budget Paper No. 2 Budget Measures
2005-06, Family Assistance maintenance income credit, Commonwealth
Government, Department of Treasury, Canberra, 10 May 2005, p. 165.
http://www.budget.gov.au/2005-06/bp2/html/index.htm
- ibid.
- Explanatory Memorandum, pp. 16-23.
- Senator the Hon. Kay Patterson, Minister for Family and
Community Services, Carer Payment extension to also assist
parents otherwise affected by Welfare to Work reforms , Media
Release, Parliament House, Canberra, 12 September 2005.
- Department of Treasury, Budget Measures 2005-06, Budget Paper
No. 2, Employment and Workplace Relations Portfolio, Welfare to
Work Reform Package 2005, Welfare to Work
increasing participation of parents , pp. 137-138. http://www.budget.gov.au/2005-06/bp2/html/index.htm
- Dale Daniels and Peter Yeend, Employment and Workplace
Relations Legislation Amendment (Welfare to Work and Other
Measures) Bill 2005 , op. cit.
- Senate Community Affairs Legislation Committee, Provisions
of the Employment and Workplace Relations Legislation Amendment
(Welfare to Work and Other Measures) Bill 2005
and the Family and Community Services Legislation Amendment
(Welfare to Work) Bill 2005 ,
http://www.aph.gov.au/Senate/committee/clac_ctte/welfare_to_work/report/report.pdf
- Senator the Hon. Kay Patterson, Minister for Family and
Community Services, Answer to a question on notice No. CAQ67
from Senator Chris Evans, Senate Estimate hearings
for the 2005-06 Budget, 3 November 2005.
http://www.aph.gov.au/senate/committee/clac_ctte/estimates/bud_0506/index.htm
- Department of Treasury, Budget Paper No. 2 Budget Measures
2006-07, Welfare to Work expanded eligibility to Carer Payment ,
Commonwealth Government, Department of Treasury, Canberra, 9 May
2006, p. 68. http://www.aph.gov.au/budget/2006-07/bp2/html/bp2_expense-08.htm
- Senator the Hon. Kay Patterson, Minister for Family and
Community Services, Answer to a question on notice No. 087
from Senator Chris Evans, Senate
Estimate hearings for the 2005-06 Budget, 3 November 2005.
http://www.aph.gov.au/senate/committee/clac_ctte/estimates/bud_0506/index.htm
- Senator the Hon. Kay Patterson, Minister for Family and
Community Services, Answer to a question on notice No. 086
from Senator Chris Evans, Senate
Estimate hearings for the 2005-06 Budget, 3 November 2005.
http://www.aph.gov.au/senate/committee/clac_ctte/estimates/bud_0506/index.htm
- Susan Downing, Social Security and Veterans' Affairs
Legislation Amendment (Budget and Other Measures) Bill 1997 ,
Bills Digest No. 138, 1997-98, Parliamentary
Library, Canberra, 2 March 1998.
http://www.aph.gov.au/library/pubs/bd/1997-98/98bd138.htm#Contact
- Sub-section 197(2) and Sub-section 197(2A) of the Social
Security Act 1991. http://www.austlii.edu.au/au/legis/cth/consol_act/ssa1991186/
- The Hon. John Howard, MP, Prime Minister, Private trusts
for people with disabilities , Media Release, Parliament
House, Canberra, 13 October 2005. http://www.pm.gov.au/news/media_releases/media_Release1627.html
- ibid.
- Department of Treasury, Budget Paper No. 2 Budget Measures
2006-07, Disability Support trusts and gifting exemption from
the assets test, Commonwealth Government, Department of
Treasury, Canberra, 9 May 2006, p. 68. http://www.aph.gov.au/budget/2006-07/bp2/html/bp2_expense-08.htm
- Department of Treasury, Budget Paper No. 2 Budget Measures
2006-07, Disability Support trusts and gifting exemption from
the assets test, Commonwealth Government, Department of
Treasury, Canberra, 9 May 2006, p. 73. http://www.aph.gov.au/budget/2006-07/bp2/html/bp2_expense-08.htm
- Richard Grant, The Uhrig Review and the future of statutory
authorities , Research Note No. 50 2004-05, Parliamentary
Library, Canberra, 30 May 2005, p. 2. http://www.aph.gov.au/library/pubs/rn/2004-05/05rn50.htm
- John. Uhrig AC, Review of the corporate governance of
statutory authorities and office holders , Commonwealth of
Australia, Canberra, June 2003. http://www.finance.gov.au/governancestructures/
- ibid., p. 17.
- Senator the Hon. Nick Minchin, Minister for Finance and
Administration, Australian Government Response to Uhrig Report ,
Media Release No. 57/04, 12 August 2004, http://www.finance.gov.au/scripts/Media.asp?Table=MFA&Id=550
- John. Uhrig AC, Review of the corporate governance of
statutory authorities and office holders , op. cit., p. 12,
point 6.
- ibid.
- ibid.
- Richard Grant, The Uhrig Review and the future of statutory
authorities , op. cit.
- ibid.
- Moira Coombs, Legislative Instruments Bill 2003
, Bills Digest No.
26, 2003-04, Parliamentary Library,
Canberra, 8 September
2003, op. cit.
- Fiona Childs, Human Services Legislation Amendment Bill 2005 ,
Bills Digest No. 12, 2005-06,
Parliamentary Library, Canberra, 8 August 2005. http://www.aph.gov.au/library/pubs/bd/2005-06/06bd012.pdf
- Dale Daniels, Family Assistance, Social Security and Veterans'
Affairs Legislation Amendment (2005 Budget and Other Measures) Bill
2006 , Bills Digest No. 104, 2005-06,
Parliamentary Library, Canberra, 2 March 2006. http://www.aph.gov.au/library/pubs/bd/2005-06/06bd104.htm
- Explanatory Memorandum, p. 66.
- Peter Yeend, Family Assistance, Social Security and Veterans'
Affairs Legislation Amendment (2005 Budget and Other Measures) Bill
2006 , Bills Digest No. 104, 2005-06,
Parliamentary Library, Canberra, 2 March 2006. http://www.aph.gov.au/library/pubs/bd/2005-06/06bd104.pdf
- ibid.
- ibid.
- Mary Anne Neilson and Jennifer Norberry, Family Law Amendment
(Shared Parental Responsibility) Bill 2005 , Bills Digest No.
99, 2005-06, Parliamentary Library,
Canberra, 28 February 2006. http://www.aph.gov.au/library/pubs/bd/2005-06/06bd099.pdf
Peter Yeend
14 June 2006
Bills Digest Service
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