House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Family and Community Services, Senator the Hon Amanda Vanstone)

Outline, financial impact statement and notes on clauses

This Bill amends the A New Tax System (Family Assistance) (Administration) Act 1999 as follows:

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The time limits for making past period (lump sum) claims for family tax benefit (FTB) and child care benefit are extended by 12 months.

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The time frame for payment of top-ups of FTB as a result of income reconciliation will be extended from one to two years after the end of the income year to which the payments relate.

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The time frames relating to the exchange, use and destruction of tax file number data for income reconciliation purposes is extended from two to three years, in keeping with the extended time frames for claiming and top-ups.

The Bill also makes consequential amendments to the Income Tax Assessment Act 1997 to enable families who use the services of a recognised tax adviser to make past period claims from 1 July 2003 to 30 June 2004 to continue to be able to claim the adviser's fee as a tax deduction.

Administered costs of the measures in this Bill are estimated at:

$45.1m in 2003-2004;

$45.2m in 2004-2005;

$45.4m in 2005-2006; and

$45.6m in 2006-2007.

Clause 1 sets out how the Act is to be cited, that is, the Family Assistance Legislation Amendment (Extension of Time Limits) Act 2003.

Clause 2 provides that the Act commences on the day on which it receives the Royal Assent.

Clause 3 provides that each Act that is specified in a Schedule is amended or repealed as set out in that Schedule and that any other Schedule item has effect according to its terms.