Senate

Supplementary Explanatory Memorandum

(Circulated by the authority of the Minister for Social Services, the Hon Christian Porter MP)

Outline

This Government amendment changes the commencement dates for both Schedules to the Bill.

The Bill currently provides for Schedule 1 (Portability of family tax benefit) to commence on 1 January 2016. This is now deferred to the first 1 January or 1 July to occur on or after Royal Assent. The earliest commencement for this measure would therefore be 1 July 2016. Schedule 1 will reduce to six weeks the length of time for which family tax benefit Part A, and additional payments that rely on family tax benefit eligibility, will be paid to recipients who are outside Australia. Portability extension, and exemption provisions that allow longer portability under special circumstances, will continue to apply.

The Bill currently provides for Schedule 2 (Large family supplement) to commence on 1 July 2016. Recognising the potential for delays to the Bill, the commencement of this Schedule is now amended to the first 1 July to occur on or after Royal Assent. Schedule 2 will cease the large family supplement, which is a component of family tax benefit Part A currently paid for the fourth and each subsequent FTB child in the family.

Financial impact statement

* Note: this figure is indicative and assumes a 1 July 2016 start date.

# Note: there is no change to this figure, which is based on a 1 July 2016 start date.

Notes on amendment

Amendment 1 amends the commencement table in clause 2 of the Bill.

The amendment changes the commencement of Schedule 1 from 1 January 2016 to the first 1 January or 1 July on or after the day the Act receives the Royal Assent.

The way that the commencement of Schedule 2 is formulated also changes. The reference to 1 July 2016 is replaced by reference to the first 1 July on or after the day the Act receives the Royal Assent.