House of Representatives

Second Reading Speech

Mr Dutton (Minister for Workforce Participation)

I move:

That this bill be now read a second time.

This bill amends the Family Assistance Act and the Family Assistance Administration Act as part of the government's Welfare to Work package of measures to support more Australians to move from welfare to work.

The bill contains two child-care related measures.

The number of hours of child-care benefit a family will be eligible to receive in a week for each child in approved child care, without meeting the work/training/study test, will be increased by four hours, from 20 to 24 hours a week. This measure is included in schedule 1.

Increasing the threshold limit of hours for which a family can receive child-care benefit will assist parents in maintaining ongoing lower levels of work force participation and help their transition to a greater level of participation once their children are older. It also recognises that child-care requirements often exceed actual working hours.

Schedule 2 gives effect to the second measure, which modifies the work/training/study test applicable to those who wish to claim child-care benefit for up to 50 hours care in a week. To be eligible for up to 50 hours of child-care benefit for a week for each child in approved child care, claimants and their partners who have work or work related commitments, or training or study commitments, will be required to demonstrate that they have engaged in these activities for at least 15 hours in that week or for at least 30 hours in a fortnight that includes that week.

This measure ensures that the greatest support is directed to those families with higher levels of work related participation.

Both measures contained in this bill will apply from 3 July 2006 and demonstrate the government's commitment to supporting the child-care needs of parents in work, training and study.

I commend this bill to the House and present the explanatory memorandum.

Debate (on motion by Mr Gavan O'Connor) adjourned.