House of Representatives

Families, Community Services and Indigenous Affairs and Other Legislation (2006 Budget and Other Measures) Bill 2006

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.


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