House of Representatives

Explanatory Memorandum

Circulated By the Authority of the Minister for Families, Housing, Community Services and Indigenous Affairs, the Hon Jenny Macklin MP

Schedule 8 - Single income family supplement

Summary

This Schedule introduces a new payment, the single income family supplement, into the family assistance law. The payment is part of the Household Assistance Package. It will provide up to $300 a year to single income families with primary earner income between $68,000 and $150,000, ,recognising that, unlike dual income families, these single income families only get one tax cut.

Background

The single income family supplement will provide assistance to individuals who have a qualifying child where the main income earner (if partnered, the member of the couple with the highest taxable income) has a taxable income between $68,000 and $150,000, and may be subject to the partner's taxable income (if any).

A qualifying child will be an FTB child who has not been absent from Australia for more than 13 weeks. A qualifying child will also include a child who has not been absent from Australia for more than 13 weeks and who would be an FTB child except that the child (or someone on the child's behalf) is receiving an 'at home' rate of one of the following payments - disability support pension, youth allowance, special benefit, ABSTUDY living allowance, or an education allowance under the Veterans' Children Education Scheme or the Military Rehabilitation and Compensation Act Education and Training Scheme.

If the main income earner's taxable income is greater than $68,000, the rate increases from nil at $68,000 by 2.5 cents for each dollar above $68,000 until the taxable income reaches $80,000 and the rate reaches the maximum of $300. The rate will stay at $300 for taxable income between $80,000 and $120,000, and will then reduce by one cent for each dollar above $120,000 until the supplement cuts out when taxable income reaches $150,000. If the claimant is a member of a couple, the rate payable based on the main income earner's taxable income will also be subject to the low income earner's taxable income (the member of the couple with the lowest taxable income). If the low income earner's taxable income exceeds $16,000, the rate will be reduced by 15 cents for each dollar above $16,000, until the rate reaches nil.

This Schedule commences on 1 July 2012, with the first payments of the supplement being made from 1 July 2013.

Explanation of the changes

Amendments to the Family Assistance Act

Item 1 amends the definition of family assistance in subsection 3(1) of the Family Assistance Act to include the single income family supplement. This ensures that single income family supplement will come within the various rules that apply to family assistance payments (such as the review and debt recovery provisions in the Family Assistance Administration Act).

Item 2 amends the definition of FTB child in the Family Assistance Act to include the meaning of an FTB child for the purpose of the single income family supplement. An FTB child for single income family supplement will have the same meaning as for family tax benefit (FTB). However, when applying Subdivision D of Division 1 of Part 3 (Determination of percentage of care) in a case where a claim for single income family supplement is required, the reference in Subdivision D to a claim for payment of FTB is to be read as a reference to a claim for payment of single income family supplement.

Item 3 inserts into subsection 3(1) a new definition of single income family supplement.

Item 4 adds new Division 6 at the end of Part 3. New Subdivision A of Division 6 sets out the rules that apply to determine an individual's eligibility for single income family supplement in normal circumstances.

New section 57G sets out the eligibility criteria for single income family supplement. Firstly, the individual must have a qualifying child, as set out in new subsection 57G(3). Secondly, the individual must also meet the residency requirements as provided for in new paragraph 57G(1)(b) and new subsection 57G(2). Thirdly, the individual must not be an absent overseas recipient (disregarding section 63A, relating to the effect on rate of an FTB child's absence from Australia). Finally, their rate of single income family supplement, worked out under new Division 4B of Part 4, must be greater than nil.

New paragraph 57G(1)(b) and new subsection 57G(2) set out the residency requirements for the supplement. These provisions are consistent with the residency requirements for FTB as set out in paragraph 21(1)(b) and subsection 21(1A) of the Family Assistance Act.

Qualifying child, for the purpose of single income family supplement, is defined in new subsection 57G(3). For an individual to be a qualifying child of another individual (the adult), they must meet one of the seven categories of qualifying child set out in new subsection 57G(3).

New paragraph 57G(3)(a) is the first category of qualifying child, and provides that an individual is a qualifying child of an adult if the individual is an FTB child of the adult and the individual is not an absent overseas FTB child (disregarding section 63A). Determining whether an individual is an absent overseas FTB child relies on section 63 of the Family Assistance Act. In broad terms, an FTB child becomes an absent overseas FTB child after 13 weeks' absence from Australia. The discretion in section 63A to extend the 13-week period would be disregarded for single income family supplement. Therefore, neither an absent overseas FTB child nor an FTB child who is in an extended FTB portability period under section 63A would be a qualifying child for single income family supplement.

For single income family supplement, an FTB child will have the same meaning as for FTB, due to the amendment made by item 2.

New paragraphs 57G(3)(b) to (g) set out the remaining six categories of qualifying child that apply if an individual would be an FTB child who is not an absent overseas child (disregarding an extended FTB portability period under section 63A) except that the individual (or someone on behalf of the individual) is receiving an income support payment at an 'at home' rate for a person who is not independent. The relevant income support payments and 'at home' rates are as follows:

•

disability support pension (aged under 21) under Part 2.3 of the Social Security Act if the individual's maximum basic rate is worked out under item 1 or 3 of Table B in point 1066A-B1 or item 1 or 3 of Table B in point 1066B-B1 of that Act;

•

youth allowance under Part 2.11 of the Social Security Act if the individual's maximum basic rate is worked out under item 1 or 2 of Table BA in point 1067G-B2 or item 1 of Table BC in point 1067G-B4 of that Act;

•

special benefit under Part 2.15 of the Social Security Act if, assuming youth allowance were payable, the individual's maximum basic rate would be worked out under item 1 or 2 of Table BA in point 1067G-B2 or item 1 of Table BC in point 1067G-B4 of that Act;

•

ABSTUDY living allowance paid at the standard (at home) rate (provided the individual is a dependent student aged 16 or more and under 21);

•

education allowance under section 3.3 of the Veterans' Children Education Scheme (provided the child is aged 16 or more);

•

education allowance under section 3.3 of the Military Rehabilitation and Compensation Act Education and Training Scheme (provided the child is aged 16 or more).

New section 57GA provides that the Secretary will determine who is eligible for the supplement where both members of an intact couple may be eligible for the supplement. This is consistent with section 26 of the Family Assistance Act for FTB, ensuring that only one member of the intact couple will be paid the new supplement.

New sections 57GB and 57GC provide rules for blended families. New section 57GB is similar to section 27 of the Family Assistance Act, and provides that, where two individuals are members of a couple and either or both have a child from a previous relationship, then any qualifying child is deemed to be a qualifying child of both individuals. Therefore, either individual can be eligible for the single income family supplement for the child, although generally only one will be determined as eligible by the Secretary because of the application of new section 57GA. New section 57GC is similar to section 28 of the Family Assistance Act and gives certain blended families an alternative to the rule in new section 57GA.

The alternative in new section 57GC acknowledges that there may be occasions when it is more appropriate that each member of the couple is eligible for single income family supplement and the rate of single income family supplement for the family unit is apportioned between the couple.

New section 57GC covers members of a couple (person A and B) where A has at least one child from a previous relationship, and at least one of the other children is a child of the relationship between A and B or a child of a previous relationship of B. In this scenario, where A and B would both be eligible for single income family supplement for the children but for new section 57GA, then the Secretary has a discretion to determine that both A and B are to be eligible for single income family supplement for the children and the percentage of each individual's single income family supplement for the children.

New subsection 57GC(2) sets out that this rule cannot apply to a past period where either individual has already been paid single income family supplement for the period. New subsection 57GC(3) defines terms used in this provision, consistent with the terms used in subsection 28(3) of the Family Assistance Act.

New section 57GD is similar to section 29 of the Family Assistance Act, and deals with situations where two individuals who are not members of a couple claim single income family supplement for a past period during which they were members of the same couple with a qualifying child. Given that both individuals would be eligible for the single income family supplement but for new section 57GA, the Secretary has the discretion to determine that both individuals are eligible for the single income family supplement for the qualifying child and the Secretary may determine the percentage of each individual's single income family supplement.

New Subdivision B of Division 6 of Part 3 deals with eligibility for single income family supplement where a qualifying child dies or the eligible individual dies.

New section 57GE sets out that an individual will continue to be eligible for single income family supplement for 14 weeks if they only have one qualifying child and that child dies. This rule applies where the individual only has one qualifying child, because single income family supplement eligibility is paid irrespective of the number of qualifying children that an individual has, and, if the individual has more than one qualifying child, they will continue to be eligible for the past period because of the other child(ren). New subsection 57GE(2) provides that, if new section 57GE applies, the individual continues to be eligible for single income family supplement based on the rate worked out under new Division 4B of Part 4 for each day in the 14-week period beginning on the day the child died.

New subsection 57GE(3) provides that the 14-week period will be reduced when a child would have turned 22 if the child was aged 21 and undertaking full-time study or studying overseas full-time when they died, or, in any other case, when the child would have been aged 21.

New section 57GF sets out the rules that apply if the 14-week period determined in new subsection 57GE(2) extends over two income years. In this situation, the individual is eligible for a single amount of single income family supplement for the period falling in the second income year, and the taxable income (for the individual and, if applicable, their partner) for the second income year is deemed to be the same as the taxable income for the first income year.

The rule in new section 57GF for an individual for whom the 14-week period extends over two income years enables the eligibility for the period falling in the second income year to be paid at the same time as the eligibility falling in the first income year. This avoids a need to claim for the period falling in the second income year after the end of that year.

New section 57GG sets out what occurs where, due to the death of an eligible individual, there is an unpaid amount of single income family supplement.

This section applies where an individual would have been eligible for an amount of single income family supplement, but died before receiving the amount of the supplement. In these circumstances, if another individual makes a claim for the payment, stating that they would like to become eligible for the amount of the supplement that had not been paid because of the death of the individual, the Secretary may make a determination that the individual is eligible for the amount of the supplement.

If the Secretary makes such a determination, no-one else is, or can become, eligible for or entitled to be paid that amount.

Item 5 inserts after Division 4A of Part 4 of the Family Assistance Act a new Division 4B. New Division 4B sets out how to determine the rate of single income family supplement.

New section 84G provides the rules for determining the rate of single income family supplement and includes a method statement that must be applied in calculating the rate.

New subsection 84G(1) provides that an individual's rate of single income family supplement is worked out in accordance with new section 84G.

New subsection 84G(2) sets out what is meant by main income earner and low income earner for the purpose of new section 84G. If the individual is a member of a couple, the main income earner is the individual with the highest taxable income and the low income earner is the individual whose taxable income is the lowest (unless their income is the same, and then the main income earner is the claimant and the low income earner is their partner). If the individual is single, they are the main income earner.

New subsection 84G(3) provides that the annual rate of single income family supplement is nil if the main income earner's taxable income (rounded down to the nearest dollar) is $68,000 or less, or $150,000 or more.

New subsection 84G(4) sets out the method statement that applies where the main income earner's taxable income (rounded down to the nearest dollar) is more than $68,000 and less than $150,000.

Step 1 requires the working out of the main income earner's taxable income (rounded down to the nearest dollar). Step 2 provides that the main income earner's taxable income is reduced by $68,000 and, in step 3, this amount is multiplied by 0.025.

Step 4 provides that, if the amount in step 3 is less than or equal to $300, this is the individual's provisional component. Step 5 provides that, if the amount in step 3 is greater than $300, the provisional component is $300 if the main income earner's taxable income exceeds $80,000 but does not exceed $120,000, or, if their taxable income exceeds $120,000, the provisional component is $300 less $0.01 for each dollar of the excess.

Step 6 provides that, if the individual is not a member of a couple, the annual rate of single income family supplement is the provisional component. Step 7 provides that, if the individual is a member of a couple, then the annual rate is the provisional component less any reduction under step 8.

Step 8 provides that, if the low income earner's taxable income (rounded down to the nearest dollar) is greater than $16,000, the provisional component is reduced by $0.15 for each dollar of the excess.

Example

George and Mildred have one qualifying child. George has taxable income of $76,000 and is the main income earner, and Mildred has taxable income of $17,000 and is, therefore, the low income earner.

Step 1 - main income earner = $76,000

Step 2 - $76,000 - $68,000 = $8,000

Step 3 - $8,000 x 0.025 = $200

Step 4 - provisional component = $200

Step 8 - as the low income earner's taxable income of $17,000 is greater than $16,000 by $1,000, this reduces the provisional component by:

$1,000 x $0.15 = $150

Step 7 - annual rate is the provisional component of $200 less reduction under step 8 of $150 = $50

If George's taxable income is $90,000 and Mildred's is $15,000:

Step 1 - main income earner = $90,000

Step 2 - $90,000 - $68,000 = $22,000

Step 3 - $8,000 x 0.025 = $550

Step 5(a) - main income earner's taxable income exceeds $80,000 but does not exceed $120,000, therefore, provisional component = $300

Step 7 - as Mildred's income is less than $16,000, there is no reduction under step 8 for the low income earner.

Therefore, the annual rate is $300

If George's taxable income is $125,000 and he is not a member of a couple:

Step 1 - main income earner = $125,000

Step 2 - $125,000 - $68,000 = $57,000

Step 3 - $57,000 x 0.025 = $1425

Step 5(b) - main income earner's taxable income of $125,000 exceeds $120,000 by $5,000.

$5,000 x $0.01 = $50

$300 - $50 = $250

Provisional component = $250

Step 6 - the annual rate is the provisional component = $250

New subsection 84G(5) provides that the daily rate of single income family supplement is the annual rate divided by 365, then rounded to the nearest cent (rounding 0.5 cents upwards). If the daily rate is above nil but below half a cent, then this is rounded up to 1 cent.

New section 84GA is similar to section 60 of the Family Assistance Act, and provides that, if a percentage is determined under new section 57GC for members of a couple in a blended family, each individual's annual rate of single income family supplement is that percentage of the rate that would otherwise apply.

New section 84GB is similar to section 61 of the Family Assistance Act, and provides that, if a percentage is determined under new section 57GD for separated members of a couple for the period before separation, each individual's annual rate of single income family supplement is that percentage of the rate that would otherwise apply.

Amendments to the Family Assistance Administration Act

Items 6, 7, 8 and 9 make amendments to definitions in subsection 3(1). The definitions that are amended are TFN claim person, TFN determination person and TFN substitution person. These changes are consequential to the amendments being made by this Schedule.

Item 10 inserts a new Division 4E into Part 3 of the Family Assistance Administration Act.

New Subdivision A of Division 4E of Part 3 sets out the requirements for making a claim for single income family supplement. New section 65K sets out the need for a claim. New subsection 65K(2) provides that, if there is a determination in force that an individual is entitled to FTB by instalment (section 16), FTB for a past period (section 17), or a single payment because of the death of an FTB child (section 18), and, if the individual's rate of FTB takes into account at least one FTB child of the individual, then the individual is not required to make a claim for single income family supplement. New subsection 65K(1) provides that, if the individual does not come within new subsection 65K(2), they must make a claim to become entitled to be paid single income family supplement. The claim must be made in accordance with new Division 4E.

New section 65KA sets out how to make a claim for single income family supplement. This provision is similar to section 7 for FTB. Where required, an individual may make a claim for single income family supplement for a past period or for a single payment (because of the death of the qualifying child) or in substitution because of the death of another individual (who was eligible to be paid single income family supplement for part or all of a past period and had not been paid before their death).

New subsection 65KA(2) sets out what must be included for a claim for single income family supplement to be effective. This includes that the tax file number requirement in either new section 65KB or 65KC must be met for a new claim for single income family supplement.

New section 65KB sets out the details of the tax file number requirement that is required by new paragraph 65KA(2)(b), which relates to claims for single income family supplement for a past period. For single income family supplement, each TFN claim person is subject to the tax file number requirement in new section 65KB. This provision is similar to section 8 (FTB), section 38A (baby bonus and maternity immunisation allowance) and section 49E (child care benefit).

The tax file number requirement in new section 65KB can be satisfied in several ways, including: providing a statement of the TFN claim person's tax file number (this option is only available to the claimant, but the actual statement can include the claimant and their partner's (if any) tax file number); making a statement that the TFN claim person does not know their tax file number, has asked the Commissioner of Taxation to tell them the number, and authorises the release of this information to the Secretary; or making a statement that the application for a tax file number is pending and authorising the Commissioner of Taxation to tell the Secretary the result of this application and the individual's tax file number, if applicable.

New subsection 65KB(7) provides that a statement of a TFN claim person's tax file number may not be required if the statement relates to an individual who is, or was, the claimant's partner, and if the claimant cannot obtain the person's tax file number or a statement as set out in new subsection 65KB(4) or (5).

New section 65KC sets out the details of the TFN requirement that is required by new paragraph 65KA(2)(c), which relates to claims for single income family supplement in substitution because of the death of another individual. For single income family supplement, each TFN substitution person is subject to the tax file number requirement in new section 65KC. This provision is similar to section 8A (FTB), section 38B (baby bonus and maternity immunisation allowance) and section 49F (child care benefit).

New subsections 65KC(1) to (6) provide the same tax file number requirements as new subsections 65KB(1) to (6) provide for claims for single income family supplement for a past period in normal circumstances, but they apply in relation to a TFN substitution person who was the deceased individual and any partner of the deceased individual during the period in respect of which the single income family supplement is claimed.

New subsections 65KC(7) and (8) contain discretions which allow the Secretary to exempt a TFN substitution person from the tax file number requirement in new section 65KC if the claimant does not know the TFN substitution person's tax file number, or cannot obtain a statement as set out under new subsection 65KC(4) or (5).

New section 65KD sets out restrictions on claims for single income family supplement for a past period. New subsection 65KD(1) provides that a claim is not effective if the claimant has previously made a claim for any of the past period.

New subsection 65KD(2) provides that, for a claim to be effective, the period claimed must fall wholly within one income year, and, if the period does fall wholly within one income year, the claim must be made before the end of the second income year after the income year that is the subject of the claim.

New subsection 65KD(3) provides that a claim for single income family supplement for a past period cannot be made in the income year in which the past period occurs.

New section 65KE sets out the restrictions on claims for single income family supplement by single payment/in substitution because of the death of another individual. New subsection 65KE(1) provides that a claim for payment of single income family supplement by single payment/in substitution because of the death of another individual is not effective if the claimant has previously made a claim on the same basis. New subsection 65KE(2) provides that a claim for payment of single income family supplement by single payment/in substitution because of death of another individual, where eligibility is based on new section 57GF or 57GG of the Family Assistance Act, must, for the claim to be effective, be made before the end of the income year after the income year in which the person died.

Under new section 65KF, a claim for single income family supplement can be withdrawn or varied, in a manner determined by the Secretary, before it is determined. A claim that is withdrawn is taken not to have been made and, therefore, the Secretary does not have to make a determination.

New Subdivision B of Division 4E of Part 3 of the Family Assistance Administration Act provides for determination of claims and payment of single income family supplement.

New section 65KG provides that, if a claim is effective, it must be determined by the Secretary. If a claim is not effective, it is taken not to have been made.

New sections 65KH, 65KI and 65KJ provide that a determination of a claim for single income family supplement cannot be made in certain circumstances.

New section 65KH provides that, where an individual makes a claim for single income family supplement for a past period in an income year, the claim can only be determined if the claimant and an individual they were partnered with during the past period have lodged a tax return for that income year if required, and if assessments have been made under the Income Tax Assessment Act 1936. If a claimant had two different partners during the relevant income year and only one of the partners has had their tax assessment made for the income year, the claim for the past period during which that partner was a member of a couple with the claimant can be determined, but the claim for the past period during which the other partner was a member of a couple with the claimant cannot be determined until the other partner has their tax assessment made.

Example

Sara was partnered with John from 1 July to 1 September 2012 and with Mo from 4 May to 30 June 2013. In determining Sara's past period claims for single income family supplement for 1 July to 1 September 2012, 2 September 2012 to 3 May 2013, and 4 May to 30 June 2013, it is ascertained that she and Mo have tax assessments for the 2012-13 income year, but John does not. Therefore, Sara's claims can be determined for the period 2 September to 3 May (based on Sara's taxable income) and for the period 4 May to 30 June (based on Sara and Mo's taxable incomes), but not yet for the period 1 July to 1 September.

New section 65KI provides that a claim for single income family supplement for a past period in an income year is taken never to have been made if the claimant and/or their partner (during the past period in the relevant income year) are required to lodge tax return(s) for that year, but do not lodge the tax return(s) before the end of the second income year following the relevant income year.

If a claimant had two different partners during the relevant income year and the claimant lodged a required tax return within the two-year time limit but only one of the partners has lodged a required tax return within the two-year time limit, the following would apply under new section 65KI. The claim for the past period during which the partner who did not lodge a required tax return was a member of a couple with the claimant would be deemed never to have been made, because the partner in that period did not lodge a required tax return within the two-year time limit. The claims for the other past periods in the income year will not be affected by new section 65KI, because the relevant tax returns were lodged within the two-year time limit.

New subsection 65KJ(1) provides that, where a TFN claim person makes a statement under either new subsection 65KB(4) or 65KC(4) (that the TFN claim person does not know their TFN etc.), the Secretary can only determine the claim if, within 28 days of the claim, the Commissioner for Taxation tells the Secretary the person's tax file number or 28 days pass without the Commissioner telling the Secretary that the person does not have a tax file number.

Similarly, new subsection 65KJ(2) provides that, if a TFN claim person makes a statement under either new subsection 65KB(5) or 65KC(5), the Secretary can only determine the claim if, within 28 days of the claim, the Commissioner for Taxation tells the Secretary the person's tax file number, or 28 days pass without the Commissioner telling the Secretary that the person has not applied for a tax file number, or the application has been refused by the Commissioner or withdrawn by the person.

New subsection 65KJ(3) provides that, if, after the 28 days, the Secretary cannot determine the claim because of either new subsection 65KJ(1) or (2), the claim is taken never to have been made.

New sections 65KK, 65KL and 65KM set out when a determination must be made that an individual is entitled or not entitled to single income family supplement.

New section 65KK sets out when a claim for single income family supplement for a past period must be determined. This section provides that the Secretary must determine that a claimant is entitled to be paid single income family supplement for a past period if there is a claim that is for a past period, and the Secretary is satisfied that the claimant is eligible for the whole of the period based on the eligibility requirements in new Subdivision A of Division 6 of Part 3 of the Family Assistance Act (eligibility in normal circumstances) or, where the qualifying child dies, for part of the period in accordance with new section 57GE of the Family Assistance Act.

New section 65KL sets out when a claimant must be determined as entitled where there has been a claim for single income family supplement by single payment or in substitution because of the death of another individual. In these circumstances, if a claim is made and the Secretary is satisfied that the claimant is eligible for the supplement based on the eligibility requirements in new section 57GF (eligibility for single amount if qualifying child dies) or new section 57GG (eligibility because an eligible individual dies) of the Family Assistance Act, the claimant must be determined as entitled.

New section 65KM provides that, if the Secretary is not satisfied under new section 65KK or 65KL, then the Secretary must determine that the claimant is not entitled to be paid the supplement for the past period or because of the death of the other individual.

New section 65KN provides that a determination made under new Division 4E of Part 3 of the Family Assistance Administration Act comes into force when it is made and remains in force at all times afterwards.

New section 65KO provides that the Secretary must give notice to the claimant of a determination under new Subdivision B of Division 4E of Part 3. The notice must include whether the claimant is entitled to be paid single income family supplement and, if entitled, the amount of the entitlement and how it is to be paid. The notice must also state that that the claimant can seek review of the decision under Part 5 of the Family Assistance Administration Act. New subsection 65KO(2) provides that the determination will be effective even if the notice requirements as set out in new subsection 65KO(1) are not complied with.

Subsection (1) of new section 65KP sets out when payment of single income family supplement is to be made when a claim is not required because the claimant has an entitlement determination for FTB in force and the rate of FTB payable under the determination takes into account at least one FTB child of the individual. In these circumstances, the Secretary must pay any amount of single income family supplement the individual is eligible for to the individual in such manner as the Secretary considers appropriate, on the earliest day that is reasonably practicable for the amount to be paid.

The note after new subsection 65KP(1) mentions that new subsection 65K(2) sets out when a claim for single income family supplement is not required.

New subsection 65KP(2) provides that, if the individual and/or their partner(s) during a period in the relevant income year are required to lodge an income tax return for that income year, the amount of single income family supplement cannot be paid unless assessments have been made under the Income Tax Assessment Act 1936 for each person. As with new section 65KH, if the individual had two different partners during the relevant income year and only one of the partners has had their tax assessment made for the income year, payment can be made for the past period during which that partner was a member of a couple with the individual and for the period the individual was not a member of a couple, but payment cannot be made for the past period during which the other partner was a member of a couple with the individual until the other partner has their tax assessment made.

New subsection 65KP(3) provides that, if the individual and/or their partner(s) during a period in the relevant income year are required to lodge an income tax return for that income year, and they and/or their partner(s) have not lodged by the end of the second income year immediately following the past period income year, then the amount of single income family supplement is not to be paid to the individual. As with new section 65KI, if the individual had two different partners during the relevant income year, and the individual lodged a required tax return within the two-year time limit but only one of the partners has lodged a required tax return within the two-year time limit, payment can be made for the past period during which that partner was a member of a couple with the individual and for the period the individual was not a member of a couple, but payment cannot be made for the past period during which the other partner was a member of a couple with the individual, because the other partner did not lodge the required tax return within the two-year time limit.

New subsection 65KP(4) provides that the payment provisions in new section 65KP are also subject to overpayment and debt recovery provisions in Part 4, the payments to payment nominee provisions in Division 3 of Part 8B and sections 225 and 226.

New section 65KQ sets out when the payment must be made if the individual has made a claim for single income family supplement. If it is determined that the claimant is entitled to the supplement for a past period or by single payment/in substitution because of the death of another individual, the Secretary must pay the amount to the individual at such time and in such manner as the Secretary considers appropriate.

The payment provisions in new section 65KQ are also subject to overpayment and debt recovery provisions in Part 4, the payments to payment nominee provisions in Division 3 of Part 8B and sections 225 and 226.

Under new section 65KB, a claimant is subject to certain tax file number requirements before a claim can be determined. Similar requirements apply under new section 65KR if a determination is in force under which a claimant is entitled to be paid single income family supplement for a past period. These tax file number requirements apply in relation to a TFN determination person, which will be defined in subsection 3(1) as being the claimant or the claimant's partner(s) during the past period, due to the amendment in item 7.

New section 65KS sets out the circumstances in which a past period determination will be varied if there is a failure to provide a tax file number.

New subsection 65KS(1) provides that, if the Secretary makes a request under new subsection 65KR(1) and the claimant does not comply within 28 days, then the Secretary may vary the determination such that the claimant is not entitled to be paid single income family supplement for any day in the past period.

Under new subsection 65KS(2), the Secretary may determine that a variation because of the application of new subsection 65KS(1) does not apply. The claimant may remain entitled to single income family supplement, despite failing to provide a requested tax file number, if the reason is that the claimant cannot obtain from a relevant partner (whether previous or current), the partner's tax file number or a statement under new subsection 65KR(3) or (4).

New subsections 65KS(3) and (4) set out the rules that apply if the Secretary makes a request under new subsection 65KR(1), and the claimant provides a statement of the kind set out in new subsection 65KR(3) or 65KR(4), but the Commissioner of Taxation tells the Secretary that the person has no tax file number, has not applied for a tax file number, has had their application refused, or has withdrawn their application. In this case, the Secretary may vary the determination such that the claimant is not entitled to be paid single income family supplement for any day in the past period.

Similarly, new subsections 65KS(5) and (6) set out the rules that apply if a TFN claim person has made a statement of the kind set out in new subsection 65KB(4) or (5), but the Commissioner of Taxation tells the Secretary that the person has no tax file number, has not applied for a tax file number, has had their application refused, or has withdrawn their application. In this case, the Secretary may vary the determination such that the claimant is not entitled to be paid single income family supplement for any day in the past period.

New subsection 65KS(8) provides that, if the Secretary varies the determination such that the person was not entitled to the single income family supplement and then finds out the tax file number of the TFN determination person or the TFN claim person, then the Secretary must vary the determination to undo the effect of the variation made under new subsection 65KS(7).

New section 65KT provides that the Secretary must give notice of a variation made under Subdivision B of Division 4E of Part 3 to the claimant. The notice must state the effect of the variation and that the claimant can seek review of the decision under Part 5 of the Family Assistance Administration Act. New subsection 65KT(2) provides that the determination will be effective even if the notice requirements as set out in new subsection 65KT(1) are not complied with.

Item 11 inserts the reference to single income family supplement into the list of inalienable payments in subsection 66(1).

Item 12 amends paragraph 71(1)(a) such that, if an amount of single income family supplement is paid to a person and they were not entitled to the amount paid, then the amount paid is a debt due to the Commonwealth by the person.

Item 13 inserts a new paragraph 93A(6)(aa), which provides that single income family supplement is included as a family assistance payment for the purpose of section 93A, which relates to recovery of amounts from financial institutions.

Item 14 inserts into paragraph 111(2)(a) the reference to new subsection 65KA(2), such that a person cannot apply to the Social Security Appeals Tribunal for review of a decision as to the form of the claim for single income family supplement.

Item 15 inserts a new subsection 154A(8), which provides that, if the tax file number of an individual or partner(s) is provided to the Secretary under new Division 4E of Part 3, then section 154A applies as if a reference to adjusted taxable income is a reference to the taxable income of the individual or their partner(s).

Item 16 amends the definition of relevant benefit in section 219TA, which is a definition that applies to Part 8B (nominees). The amendment means that single income family supplement is a relevant benefit for the purpose of Part 8B.

Item 17 is an application provision setting out that this Schedule applies in relation to the 2012-13 income year and later income years.