Explanatory Memorandum
(Circulated by the authority of the Minister for Family and Community Services, Senator the Hon Kay Patterson)Outline and financial impact statement
Outline
This Bill amends the social security law, the family assistance law and the Veterans' Entitlements Act 1986 to give effect to two further 2004 election commitments in respect of older Australians and families with children. The Bill will:
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- increase the rate of family tax benefit (FTB) Part B by introducing a new FTB Part B supplement from 1 January 2005; and
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- exempt aged care accommodation bonds from the operation of the social security and veterans' affairs assets test.
The Bill will also replace the existing formula for the child income cut-out amount for FTB with a specified cut-out amount of $11 233. The new amount will apply from 1 July 2005 and will be indexed on 1 July 2006 and on each subsequent 1 July in accordance with movements in the Consumer Price Index.
Financial Impact
Schedule 1 (FTB Part B supplement)
Commencement: 1 January 2005
Financial impact: Administered resourcing
- 2004-05 $205.9 m
- 2005-06 $423.8 m
- 2006-07 $432.6 m
- 2007-08 $443.7 m
Departmental resourcing
- 2004-05 $6.5 m
- 2005-06 $5.4 m
- 2006-07 $3.4 m
- 2007-08 $3.4 m
Commencement: 1 July 2005
Financial impact: Administered resourcing
- 2005-06 $0.2 m
- 2006-07 $0.2 m
- 2007-08 $0.5 m
- 2008-09 $0.6 m
Departmental resourcing
nil
Schedule 3 (Accommodation bonds)
Commencement: 1 July 2005
Financial impact: Administered resourcing
- 2004-05 nil
- 2005-06 $11.6 m
- 2006-07 $13.9 m
- 2007-08 $16.5 m
Departmental resourcing
- 2004-05 $3.0 m
- 2005-06 $2.0 m
- 2006-07 $0.4 m
- 2007-08 $0.4 m