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House of Representatives

Family Assistance and Other Legislation Amendment Bill 2012

Explanatory Memorandum

(Circulated by the authority of the Minister for Families, Community Services and Indigenous Affairs, Minister for Disability Reform, the Hon Jenny Macklin MP)

Outline

The Bill contains the measures set out below.

Immunisation requirements

This measure amends the family assistance law to make payment of the family tax benefit Part A supplement conditional on a child meeting the immunisation requirements. This will apply to the income years in which the child turns one, two and five. As a consequence, maternity immunisation allowance will cease from 1 July 2012. This measure will strengthen incentives for parents to have their children immunised and help improve immunisation rates over time.

Baby bonus

This measure pauses the indexation of baby bonus for three years from 1 July 2012, and resets the amount of baby bonus to $5,000 per child from 1 September 2012.

Non-entitlement to family tax benefit on estimated income basis

From 1 July 2012, this measure will prevent an individual (and partner, if any) from being entitled to family tax benefit Part A and/or Part B as fortnightly instalments on the basis of estimated income where the individual had no actual entitlement after underestimating their income for two consecutive years, starting from 2009-10.

Carer allowance

As announced on 3 August 2011 in the Government's National Carer Strategy , the Bill gives certain carer allowance recipients, who care for a disabled adult, access to bereavement payments on the death of the care receiver.

Carer supplement

A second measure from the National Carer Strategy will allow access to carer supplement for those carers whose rate of payment is reduced to nil because of income where they or their partner worked in the fortnight covering 1 July in any given year. This will help ensure the income support system does not act as a disincentive to carers working in paid employment.

Other amendments

Amendments are also made to the family assistance law and social security law to clarify various provisions. The amendments are of a minor or technical nature.

Financial impact statement

Immunisation requirements

This measure will provide savings of $209.1 million over the four years from 1 July 2011.

Baby bonus

This measure will provide savings of $357.7 million over the four years from 1 July 2011.

Non-entitlement to family tax benefit on estimated income basis

This measure has a financial impact of $1.2 million over the four years from 1 July 2011.

Carer allowance

This measure has a financial impact of $2.1 million over the four years from 1 July 2011.

Carer supplement

This measure has a financial impact of $2.9 million over the four years from 1 July 2011.

Other amendments

These amendments have no financial impact.

Statements of compatibility with human rights

The statements of compatibility with human rights appear at the end of this explanatory memorandum.


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