Supplementary Explanatory Memorandum
(Circulated by the authority of the Treasurer, the Hon Scott Morrison MP)General outline and financial impact
Financial impact
As a result of the amendments to the Bill, the Bill will now have the following estimated impact on the underlying cash balance over the forward estimates.
| No. | Measure Title | 2015-16 | 2016-17 | 2017-18 | 2018-19 | 2019-20 | Total |
| 1 | Minimum repayment income for HELP debts | 0.0 | -2.1 | -2.2 | 2.8 | 4.8 | 3.3 |
| 2 | Indexation of higher education support amounts | 0.0 | 0.0 | 0.0 | 9.7 | 44.9 | 54.6 |
| 3 | Removal of HECS-HELP benefit | 0.0 | 0.0 | 7.2 | 7.1 | 7.3 | 21.5 |
| 4 | Job commitment bonus | -0.4 | 45.8 | 66.1 | 65.5 | 65.0 | 242.1 |
| 5 | Australian Renewable Energy Agency's finances | 0.0 | 0.0 | 242.0 | 1.7 | 213.6 | 457.3 |
| 6 | Indexation of private health insurance thresholds | 0.0 | 0.0 | 0.0 | 127.3 | 253.7 | 381.0 |
| 7 | Abolishing the National Health Performance Authority | -0.7 | 22.1 | 21.8 | 22.7 | 22.7 | 88.6 |
| 8 | Aged care | -3.5 | 21.2 | 24.2 | 20.2 | 18.4 | 80.5 |
| 10 | Newly arrived resident's waiting period | 0.0 | 27.5 | 111.5 | 86.2 | 87.4 | 312.5 |
| 11 | Student start-up scholarships | 0.0 | 0.0 | 146.7 | 92.6 | 58.7 | 298.1 |
| 12 | Interest charge | 0.0 | 179.5 | 120.2 | 59.2 | 28.2 | 387.0 |
| 13 | Debt recovery | 8.3 | 49.9 | 49.8 | 49.8 | 0.0 | 157.8 |
| 14 | Parental leave payments | -0.9 | 24.1 | 35.9 | 37.3 | 37.4 | 133.7 |
| 15 | Fringe benefits | -1.9 | 6.8 | 39.0 | 44.3 | 43.9 | 132.1 |
| 16 | Carer allowance | 0.0 | 10.4 | 29.0 | 34.3 | 34.9 | 108.6 |
| 17 | Indexation of family tax benefit and parental leave thresholds | 0.0 | -0.8 | 54.1 | 115.2 | 162.4 | 330.9 |
| 18 | Pension means testing for aged care residents | 0.0 | -0.8 | 27.1 | 34.5 | 56.3 | 117.1 |
| 19 | Employment income | -1.1 | -2.0 | -11.5 | 36.9 | 39.2 | 61.5 |
| 21 | Closing carbon tax compensation to new welfare recipients | 0.0 | -4.0 | 40.6 | 67.1 | 91.0 | 194.7 |
| 21A | Income limit for family tax benefit Part A supplement | 0.0 | 1.1 | 489.9 | 554.4 | 602.9 | 1648.3 |
| 22 | Rates of R & D tax offset | 0.0 | 0.0 | 160.0 | 210.0 | 230.0 | 600.0 |
| 23 | Single touch payroll reporting | -85.4 | -48.0 | -12.7 | 224.5 | 12.0 | 90.4 |
| 24 | Single appeal path under the Military Rehabilitation and Compensation Act | -0.9 | 0.4 | 1.3 | 1.4 | 1.4 | 3.6 |
| Total | -86.4 | 331.1 | 1639.8 | 1904.7 | 2116.1 | 5905.2 |
Australian Renewable Energy Agency's finances
The Government has agreed to restore funding to the Australian Renewable Energy Agency (ARENA) of $800 million over the five years to 2021-22.
While retaining significant grant funding for ARENA, this amendment contributes around $460 million as a Budget repair measure.
Dental services
Amendments 1 and 5 remove Schedule 9 to the Bill (Dental services). It is the Government intention that Schedule 9 be reintroduced as a standalone Bill for Parliamentary consideration.
Newly arrived resident's waiting period
There are no amendments to the text of this Bill for Schedule 10 - Newly Arrived Resident's Waiting Period. However, this supplementary explanatory memorandum provides an opportunity to clarify that access to special benefit will still be available to all newly arrived residents in financial hardship who have suffered a substantial change of circumstances beyond their control after they have first entered Australia.
As there are no amendments to the text of this Bill, there is no further financial impact, as the costs for this schedule already assume the above.
Psychiatric confinement
Amendments are made to repeal Schedule 20 to the Bill.
Closing carbon tax compensation to new welfare recipients
Amendments 7 to 18 amend Schedule 21 to the Bill. Schedule 21 contains amendments relating to closing carbon tax compensation to new welfare recipients.
Income limit for FTB Part A supplement
A new Schedule 21A is inserted into the Bill. This Schedule provides an income limit of $80,000 on payment of the family tax benefit (FTB) Part A supplement. If an individual's adjusted taxable income (which includes the adjusted taxable income of their partner if any) is more than $80,000 for the relevant income year, then the individual's FTB Part A supplement in relation to that year will be nil.
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