Explanatory Memorandum
(Circulated by the authority of the Minister for Social Services, the Hon Christian Porter MP)Outline
This Bill introduces amendments to the A New Tax System (Family Assistance) (Administration) Act 1999 (the Family Assistance Administration Act) for the purpose of ensuring that clear date of effect rules operate with respect to certain review decisions that create new or increased entitlements to family tax benefit (FTB), for example, through top-up payments or FTB supplements.
This Bill also proposes contingent amendments to repeal or revise the proposed measures in the event that the Social Services Legislation Amendment (Family Payments Structural Reform and Participation Measures) Bill 2015 (the Structural Reform Bill) is enacted. That Bill would, if enacted, phase out FTB supplements by 1 July 2018.
Finally, this Bill addresses an unintended consequence of previous amendments made to the Youth Allowance Rate Calculator in section 1067G of the Social Security Act.
Schedule 1-Main amendments: Date of effect rules for certain decisions about FTB by instalment
Schedule 1 deals with the date of effect of decisions made by the Secretary in internal review and decisions made by the Administrative Appeals Tribunal under Divisions 1 and 2 of Part 5 of the Family Assistance Administration Act. Generally, these amendments will affect certain review decisions related to the payment of FTB by instalment in the 2012-2013 and/or later income years. The intention is to more clearly align the legislation with its intended operation.
Schedule 2-Contingent amendments: Certain FTB by instalment decisions
Schedule 2 would make several contingent amendments to the Family Assistance Administration Act in the event that Structural Reform Bill is enacted after this Bill commences.
Schedule 3-Other amendments: Youth Allowance Rate Calculator
Schedule 3 corrects an unintended consequence of amendments that were made to the Youth Allowance Rate Calculator in section 1067G of the Social Security Act 1991 by Part 3 of Schedule 1 of the Social Services Legislation Amendment (More Generous Means Testing for Youth Payments) Act 2015 (the More Generous Means Testing for Youth Payments Act). This amendment ensures that the aim to align the parental means testing arrangements for youth allowance more closely with those for FTB Part A will be met. This amendment will commence immediately after the commencement of Part 3 of Schedule 1 to the More Generous Means Testing for Youth Payments Act.
Financial impact statement
There is no or negligible financial impact arising from these amendments.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
The statements of compatibility with human rights for each measure appear at the end of this explanatory memorandum.