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)

OUTLINE

This bill introduces a participation requirement for family tax benefit (FTB) Part A children aged 16 to 20 years. Under a new FTB activity test, a young person aged 16 to 20 would not be an FTB child unless the young person has completed their final year of secondary school or equivalent level of education or is working towards achieving this through full-time study. In appropriate circumstances, an individual may undertake a specified number of hours of study per week (averaged over the period that the individual is enrolled in the course of education or study). There will be capacity to exempt a young person from the FTB activity test in prescribed circumstances.

Financial impact statement

This financial impact includes impacts for the Department of Education, Employment and Workplace Relations in relation to youth allowance participation amendments included in the Social Security Amendment (Training Incentives) Act 2009 .