House of Representatives

Explanatory Memorandum

(Circulated by the authority of the Minister for Families and Social Services, Senator the Hon Anne Ruston)

OUTLINE

The Family Assistance Legislation Amendment (Extend Family Assistance to ABSTUDY Secondary School Boarding Students Aged 16 and over) Bill 2019 (the Bill) implements the 2019-20 Budget measure 'Extending Family Tax Benefit to ABSTUDY recipients aged 16 and over who study away from home'. Upon its commencement, the Bill will extend Family Tax Benefit (FTB) eligibility to the families of ABSTUDY secondary school students who are aged 16 or over, and are required to live away from home to attend school.

Under Family Assistance Legislation families of Indigenous boarding students aged under 16 are generally eligible for both ABSTUDY and FTB. ABSTUDY for these students is paid directly to the school and boarding provider to cover tuition and boarding costs, while FTB is paid to the family to help with the cost of raising children. FTB supports families through assisting with the ongoing costs of their children's daily incidentals while they are away at school, such as clothing, toiletries, medicines and pocket money as well as their essential living costs when they are at home during school holidays. This Bill will ensure that families of ABSTUDY boarding students aged 16 to 19 are eligible for FTB until the student completes year 12.

Schedule 1 - Amendments

Schedule 1 amends the A New Tax System (Family Assistance) Act 1999 (Family Assistance Act) and the A New Tax System (Family Assistance) (Administration) Act 1999 (Family Assistance Administration Act) to provide that FTB will continue to be payable to families of ABSTUDY children who live away from home to study once they turn 16.

Financial impact statement

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

The statement of compatibility with human rights appears at the end of this explanatory memorandum.