House of Representatives

Explanatory Memorandum

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

Notes on Clauses

Abbreviations and Acronyms used in this explanatory memorandum

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DSS means the Department of Social Services;

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Family Assistance Act means the A New Tax System (Family Assistance) Act 1999;

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Family Assistance Administration Act means the A New Tax System (Family Assistance)(Administration) Act 1999;

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FTB means Family Tax Benefit.

Clause 1 sets out how the new Act is to be cited - that is, as the Family Assistance Legislation Amendment (Extend Family Assistance to ABSTUDY Secondary School Boarding Students Aged 16 and Over) Act 2019.

Clause 2 provides a table setting out the commencement date of the new Act. If passed, and the Act receives Royal Assent in 2019, then the Act will commence on 1 January 2020. If the Act receives Royal Assent on or after 1 January 2020 then the Act will commence on the first 1 January, 1 April, 1 July or 1 October to occur after the day the Act receives 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Clause 3 provides that each Act that is specified in a Schedule is amended or repealed as set out in that Schedule, and any other item in a Schedule to the Bill has effect according to its terms.

Schedule 1 - Amendments

A New Tax System (Family Assistance) Act 1999

Summary

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 at the same rates to families of ABSTUDY children who live away from home to study once they turn 16.

Explanation of the changes

A New Tax System (Family Assistance) Act 1999

Item 1 inserts "(1)" before the word "Despite" in current section 22A of the Family Assistance Act.

Item 2 includes the text ", unless subsection (2) applies to the individual" at the end of table item 2(c) to section 22A. This provides for new subsection 22A(2) inserted into the Family Assistance Act by item 3, detailed below.

Item 3 inserts new subsection 22A(2) which provides for the interaction of section 22A with ABSTUDY.

Item 4 amends section 35 of the Family Assistance Act, which deals with when an approved care organisation is not eligible for FTB, to include the words ", unless subsection (1A) applies to the individual" to the end of the text at table item 2 of subsection 35(1).

Item 5 inserts a new subsection 35(1A) which provides an exception to the circumstances in which an approved care organisation will not be eligible to receive FTB. New subsection 35(1A) provides that an approved care organisation will be eligible for FTB in respect of an individual, where the individual is aged 16 or more; is receiving ABSTUDY which is being paid on the basis that the individual is undertaking full-time study at a secondary school, and is approved under the ABSTUDY scheme to live away from home and is boarding away from home for the purposes of attending school.

The note to new subsection 35(1A) refers to subsection 3(1) of the Family Assistance Act for the meaning of "undertaking full-time study". Subsection 3(1) provides that "undertaking full-time study" has the same meaning as provided in the Social Security Act 1991, which is provided for in section 541B of that Act.

A New Tax System (Family Assistance) (Administration) Act 1999

Item 6 inserts the text ", unless subsection (1A) applies to the individual" at the end of paragraph 28B(1)(c)(iv).

Item 7 inserts new subsection 28(B)(1A) which is equivalent to new subsection 35(1A) inserted to the Family Assistance Act by item 5, detailed above.

Item 8 provides for the application of the amendments, with the amendments to the Family Assistance Act to apply in relation to working out eligibility for FTB on or after the commencement of the Bill and the amendments to the Family Assistance Administration Act to apply to a claim, referred to in paragraph 28B(1)(c), made on or after the commencement of the Bill.