Explanatory Memorandum
(Circulated by the authority of the Minister for Families, Community Services and Indigenous Affairs, the Hon Mal Brough MP)Schedule 2 - Large family supplement
Summary
From 1 July 2006, families with 3 or more children will be eligible for an additional amount of FTB Part A, known as the large family supplement. This extra payment is currently only available for families with 4 or more children.
Background
An individual's annual rate of FTB is comprised of a Part A rate and a Part B rate. FTB Part A is made up of a number of components of rate, including the individual's large family supplement, if any.
An amount by way of a large family supplement is added in working out an individual's rate of FTB Part A if the individual has 4 or more children. It is paid for the fourth and subsequent children. The amount of the large family supplement is currently $248.20 per annum, although this amount will be indexed in accordance with the CPI on 1 July 2006 (as it is on 1 July of each year).
Amendments are made to enable the large family supplement to be paid to families with 3 or more children, in respect of the third and subsequent children in the family.
Explanation of the changes
Clause 34 of Schedule 1 to the Family Assistance Act provides that an amount by way of large family supplement is to be added in working out an individual's maximum rate of FTB Part A (including the base rate) if the individual has 4 or more children.
The amount of the large family supplement is set out in the formula in clause 35 of Schedule 1. Under the formula, the amount is currently $248.20 per annum and is paid in respect of the individual's fourth and subsequent children.
Item 1 replaces the existing reference to '4 or more' (children) in clause 34 with a reference to '3 or more' (children). This amendment ensures that a large family supplement is available in respect of the third FTB child and any subsequent children.
Item 2 replaces the existing reference to '3' in the formula with a reference to '2'. This amendment ensures that the amount of a large family supplement is available in respect of the third FTB child and any subsequent children.
These amendments commence from 1 July 2006.