Explanatory Memorandum
(Circulated by authority of the Minister for Education and Youth, the Honourable Alan Tudge MP)Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
FAMILY ASSISTANCE LEGISLATION AMENDMENT (CHILD CARE SUBSIDY) BILL 2021
The Family Assistance Legislation Amendment (Child Care Subsidy) Bill 2021 (Bill) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Bill
The purpose of the Family Assistance Legislation Amendment (Child Care Subsidy) Bill 2021 (the Bill) is to give effect to a key measure impacting the rate of child care subsidy (CCS) that Australian families are entitled to receive.
Specifically, the measure relates to removing the existing CCS cap that limits the amount of CCS some families can receive in a year, and increasing the rate of CCS for families with multiple children under six years of age who are eligible for CCS.
The Bill implements the Government's changes to CCS announced in the 2021-22 Budget, building on the success of the Australian Government's Child Care Package implemented in July 2018.
These changes will maintain the integrity of the CCS and will reduce out-of-pocket child care costs for those families who currently pay the most - those with multiple children aged under six years.
The Bill makes amendments to the A New Tax System (Family Assistance) Act 1999 (the Family Assistance Act) and the A New Tax System (Family Assistance) (Administration) Act 1999 (the Family Assistance Administration Act), which are the two key Acts that provide families with assistance with child care costs, primarily through the child care subsidy.
Amendments to the Family Assistance Administration Act in Schedule 1 to the Bill remove the annual cap from the Family Assistance Law so that from 1 July 2022 (or an earlier date fixed by Proclamation) there will no longer be a limit on the amount of child care subsidy that families, above a specified income, can receive each year.
Amendments to the Family Assistance Administration Act in Schedule 2 to the Bill provide for increased child care subsidy from 11 July 2022 (or an earlier date fixed by Proclamation) for families with multiple children under six who are eligible for CCS. The amendments will increase the rate of CCS by 30 percentage points for second and subsequent children aged under six, up to a maximum subsidy rate of 95 per cent. The measure will be implemented through a two-phased approach to ensure implementation can occur as soon as possible but allowing sufficient time for the necessary system build to support the measure.
Part 1 of Schedule 2 to the Bill outlines the changes to the Family Assistance Administration Act for Phase 1 of this measure. In Phase 1, families will receive the higher rate of CCS for a child as long as there is an older child under six years of age with CCS eligibility, with CCS eligibility ceasing after 26 consecutive weeks of no sessions of care being provided by an approved child care service. The Secretary may also cease CCS eligibility at any time if the Secretary considers an individual does not intend that the child be enrolled in or attend a child care service.
Part 2 of Schedule 2 to the Bill outlines the changes to the Family Assistance Administration Act for Phase 2 of this measure. In Phase 2, families will receive the higher rate of CCS for a child as long as there is an older child under six years who has attended a session of care in the last 14 consecutive weeks.
Analysis of human rights implications
The Bill engages the following human rights:
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- the right to work - Article 6 of the International Covenant on Economic, Social and Cultural Rights (ICESCR);
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- the rights of children - Article 3 of the Convention on the Rights of the Child (CRC);
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- the right to adequate standing of living - Article 27 of the CRC.
The right to work
Article 6(1) of the ICESCR recognises "the right of everyone to the opportunity to gain [their] living by work" and that the State will "take appropriate steps to safeguard this right". Data shows that child care costs can be a barrier preventing parents, in particular secondary income earners in a couple, from entering or increasing their participation in the workforce. By reducing the costs of child care for families by increasing the amount of CCS they can receive, families can have greater choice in their participation in the workplace. The Bill is compatible with the right in Article 6(1) of the ICESCR as it promotes the right to work.
The rights of children
Article 3 of the CRC recognises that in all actions concerning children, the best interests of the child shall be a primary consideration.
Early learning and child care play an important role in the development of Australian children. The Bill promotes the best interests of the child by giving families better access to affordable and quality child care particularly in the early years of life. The Bill is compatible with the rights of children.
Right to adequate standard of living
Article 27 of the CRC requires that State Parties recognise the right of every child to a standard of living adequate for the child's physical, mental, spiritual, moral and social development. The Bill supports this right by promoting better access to more affordable child care for more families. The amendments help ensure more children have access to an child care to aid early learning and social development. The Bill is compatible with the right to an adequate standard of living.
Conclusion
The Bill is compatible with human rights as the amendments in this Bill advance human rights under the ICESCR and CRC.