Explanatory Memorandum
(Circulated by the authority of the Minister for Family and Community Services, Senator the Hon Amanda Vanstone)Family Assistance Estimate Tolerance (Transition) Bill 2001
Outline and Financial Impact Statement
This Bill enables effect to be given to the Governments decision to allow a $1,000 tolerance for family tax benefit (FTB) and child care benefit (CCB) overpayments because of incorrectly estimated income or shared care in the 2000-2001 income year. Under the decision, up to $1,000 of an overpayment will be waived to help families make the transition to the new FTB and CCB system, which completed its first year of operation on 30 June 2001.
The decision will be put into effect through a disallowable instrument, in keeping with the model for dealing with class debts under the family assistance law. The Bill provides the enabling capacity for that instrument.
Date of effect: Royal Assent.
Financial impact: The financial impact from the Bill itself is nil because the Bill merely provides the enabling capacity for the Governments decision to be put into effect through a disallowable instrument. However, when the proposed disallowable instrument is made, an estimated $220 million in higher than expected recoveries will be forgone.
Family Assistance Estimate Tolerance (Transition) Bill 2001
Clause 1 of the Bill sets out how the Bill, when enacted, is to be cited.
Clause 2 specifies that the Bill commences on Royal Assent.
Clause 3 gives effect to the Schedule to the Bill, which contains the two amending items.