Senate

Revised Explanatory Memorandum

(Circulated by the authority of the Minister for Families and Social Services, the Hon Paul Fletcher MP)

Outline

The Bill introduces the following measures:

1. Increase existing newly arrived resident's waiting periods and introduce a newly arrived resident's waiting period for carer allowance, bereavement allowance and parenting payment

2. Increase existing newly arrived resident's waiting periods for farm household allowance

3. Introduce a newly arrived resident's waiting period for family tax benefit Part A

4. Introduce a newly arrived resident's waiting period for parental leave pay and dad and partner pay

5. Introduce a one-off increase to the higher income free area for family tax benefit Part A

6. Maintain the increased higher income free area for family tax benefit Part A and the higher income limits for family tax benefit Part B, parental leave pay and dad and partner pay

7. Introduce a new taper structure for the maximum rate of family tax benefit Part A

Schedule 1 - Social security amendments

This Schedule:

•

increases existing newly arrived resident's waiting periods from 104 weeks to 208 weeks for various working age social security payments and concession cards

•

introduces a 208 week newly arrived resident's waiting period for bereavement allowance and parenting payment

•

introduces a 52 week newly arrived resident's waiting period for carer allowance.

Schedule 2 - Farm household support amendments

This Schedule increases the existing newly arrived resident's waiting period from 104 weeks to 208 weeks for farm household allowance.

Schedule 3 - Family assistance amendments

This Schedule introduces a newly arrived resident's waiting period of 52 weeks for family tax benefit Part A.

Schedule 4 - Paid parental leave amendments

This Schedule introduces a newly arrived resident's waiting period of 104 weeks for parental leave pay and dad and partner pay.

Schedule 5 - Other amendments

This Schedule increases the higher income free area for family tax benefit Part A and pauses indexation for a range of family assistance and paid parental leave income limits until 1 July 2021. This Schedule also revises the taper rate for the Part A rate of family tax benefit (Method 2).

Financial Impact Statement

The Bill will achieve savings of approximately $1.3 billion (Department of Social Services administered impacts only) over four years to 2021-22.

The impacts on the fiscal balance for each schedule in the Bill are as follows (Department of Social Services administered impacts only):

Note: the above figures represent estimated savings based on the commencement date specified in the Bill.

STATEMENTS OF COMPATIBILITY WITH HUMAN RIGHTS

The Statements of Compatibility with Human Rights appear at the end of this explanatory memorandum.