SOCIAL SERVICES LEGISLATION AMENDMENT (FAMILY PAYMENTS STRUCTURAL REFORM AND PARTICIPATION MEASURES) BILL 2015 Explanatory Memorandum
SOCIAL SERVICES LEGISLATION AMENDMENT (FAMILY PAYMENTS STRUCTURAL REFORM AND PARTICIPATION MEASURES) BILL 2015
2013-2014-2015
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SOCIAL SERVICES LEGISLATION AMENDMENT
(FAMILY PAYMENTS STRUCTURAL REFORM AND
PARTICIPATION MEASURES) BILL 2015
EXPLANATORY MEMORANDUM
(Circulated by the authority of the
Minister for Social Services, the Hon Christian Porter MP)
SOCIAL SERVICES LEGISLATION AMENDMENT (FAMILY PAYMENTS
STRUCTURAL REFORM AND PARTICIPATION MEASURES) BILL 2015
OUTLINE
This Bill will introduce the measures set out below.
Reform family tax benefit Part A and at-home under-18 year old youth
fortnightly rates
Family tax benefit Part A fortnightly rates will be increased by $10.08 for each
FTB child in the family aged up to 19. An equivalent rate increase, of around $10.44
per fortnight, will apply to youth allowance and disability support pension recipients
aged under 18 and living at home. These increases will apply from 1 July 2018.
Reforms to family tax benefit Part B
From 1 July 2016, the Bill will introduce a new rate structure for family tax benefit
Part B, and make other amendments to the rules for Part B, to:
increase the standard rate by $1,000.10 per year for families with a youngest
child aged under one;
introduce a reduced rate of $1,000.10 per year for single parent families with a
youngest child aged 13 to 16 (currently $2,737.50), and extend the $1,000.10
rate to couple grandparents caring for a youngest child in this age range;
remove family tax benefit Part B for couple families (other than grandparents)
with a youngest child aged 13 or over.
Phase out the family tax benefit Part A and Part B supplements
The Bill will phase out the family tax benefit Part A supplement by reducing it to
$602.25 a year from 1 July 2016, and to $302.95 a year from 1 July 2017. It will then
be withdrawn from 1 July 2018.
The family tax benefit Part B supplement will also be phased out. It will be reduced
to $302.95 a year from 1 July 2016, and to $153.30 a year from 1 July 2017. It will
then be withdrawn completely from 1 July 2018.
Financial impact statement
MEASURE FINANCIAL IMPACT OVER THE
FORWARD ESTIMATES
(FISCAL BALANCE, WHOLE OF
GOVERNMENT)
Reform family tax benefit Part A and at-home Cost of $584.2 million
under-18 year old youth fortnightly rates
Reforms to family tax benefit Part B Saving of $1,361.8 million
Phase out the family tax benefit Part A and Part B Saving of $4,063.9 million
supplements
1
STATEMENTS OF COMPATIBILITY WITH HUMAN RIGHTS
The statements of compatibility with human rights appear at the end of this
explanatory memorandum.
2
SOCIAL SERVICES LEGISLATION AMENDMENT (FAMILY PAYMENTS
STRUCTURAL REFORM AND PARTICIPATION MEASURES) BILL 2015
NOTES ON CLAUSES
Abbreviations used in this explanatory memorandum
Family Assistance Act means the A New Tax System (Family Assistance)
Act 1999
Family Assistance Administration Act means the A New Tax System
(Family Assistance) (Administration) Act 1999
Social Security Act means the Social Security Act 1991
Social Security Administration Act means the Social Security
(Administration) Act 1999
Clause 1 sets out how the new Act is to be cited - that is, as the Social Services
Legislation Amendment (Family Payments Structural Reform and Participation
Measures) Act 2015.
Clause 2 provides a table setting out the commencement dates of the various
sections in, and Schedules to, the new Act.
Clause 3 provides that legislation that is specified in a Schedule is amended or
repealed as set out in that Schedule.
1
Schedule 1 - Payment rates
Summary
Family tax benefit Part A fortnightly rates will be increased by $10.08 for each
FTB child in the family aged up to 19. An equivalent rate increase, of around $10.44
per fortnight, will apply to certain youth allowance and disability support pension
recipients aged under 18. These increases will apply from 1 July 2018.
Background
The standard FTB child rate for an individual whose family tax benefit is calculated
under method 1 is set out in clause 7 of Schedule 1 to the Family Assistance Act.
There are two different FTB child rates, depending on whether the FTB child is under
13 or has reached 13 years of age. These FTB child rates are referred to as
'FTB child rate (A1)' for the purposes of indexation under Schedule 4 to the Family
Assistance Act.
From 1 July 2018, these rates will be increased by $262.80 a year (equivalent to
$10.08 per fortnight). The increase will be applied to these FTB child rates after they
have been indexed on 1 July 2018 in accordance with the usual rules.
Youth allowance is calculated under the Youth Allowance Rate Calculator in
section 1067G of the Social Security Act. The tables in points 1067G-B2 and
1067G-B3 set out a person's maximum basic rate, depending on their situation and
whether or not they are independent.
From 1 July 2018, the maximum basic rate of youth allowance for a person who is:
not independent, lives at home and is not yet 18 years of age;
independent, an accommodated independent person and not yet 18 years of
age; or
independent, in supported state care and not yet 18 years old;
will be aligned to the method 1 FTB child rate applicable to an FTB child who has
reached 13 years of age.
Aligning these two rates of payment will avoid confusion for families, and make sure
there is no financial incentive for an FTB child to leave full-time secondary study to
claim youth allowance.
Disability support pension is calculated under Pension Rate Calculator D in
section 1066A of the Social Security Act for people who are under 21 years of age,
who are not blind and who do not have dependent children. Pension Rate
Calculator E provides for the calculation of the rate of disability support pension for a
person who is under 21 years of age and is permanently blind.
2
Schedule 1 - Payment rates
From 1 July 2018, the maximum basic rate of disability support pension for a person
who is not a member of a couple, under 18, not independent and not living away
from the person's parental home because of a medical condition of the person, will
also be aligned to the method 1 FTB child rate applicable to an FTB child who has
reached 13 years of age.
Explanation of the changes
Part 1 - Family tax benefit
Amendments to the Family Assistance Act
Schedule 4 provides for the indexation of specified rates and amounts. These
include the FTB child rates set out in clause 7 of Schedule 1 which are referred to in
Schedule 4 as 'FTB child rate (A1)'. These are annual amounts.
Item 1 inserts a new clause 7 into Schedule 4, which, in effect, increases each
annual amount of FTB child rate (A1) by $262.80. The increase would occur on
1 July 2018, after the amounts have been indexed under Schedule 4 in accordance
with the current rules. The note at the end of new clause 7 addresses a technical
issue.
Item 2 is an application provision which ensures that the new increased amounts are
used to calculate the rate of family tax benefit for days on and after commencement
(being 1 July 2018).
Part 2 - Youth allowance and disability support pension
Amendments to the Social Security Act
The rate of disability support pension for a person who is under 21, not blind and has
no dependent children is worked out using Pension Rate Calculator D at the end of
section 1066A. The maximum basic rates table is in point 1066A-B1. Item 1 in the
table at the end of point 1066A-B1 specifies the maximum basic rate (both annual
and fortnightly) for a person who is not a member of a couple, who is under 18,
not independent and not living away from the person's parental home because of a
medical condition.
Item 3 omits the annual amount in column 3 of item 1 and substitutes a reference to
the annual linked rate. This concept is then defined in new point 1066A-B2
(inserted by item 6) by reference to column 2 or item 2 of the table in clause 7 of
Schedule 1 to the Family Assistance Act (being the FTB child rate applicable to an
FTB child who has reached 13 years of age).
Item 4 omits the fortnightly amount in column 4 of item 1 and substitutes a reference
to the fortnightly linked rate. This concept is then defined in new point 1066A-B3
(inserted by item 6) through a formula that converts the annual rate in column 3
(the annual linked rate) into a fortnightly rate.
Item 5 makes a consequential amendment to note 4 at the end of point 1066A-B1.
3
Schedule 1 - Payment rates
Items 7 to 10 make similar amendments to Pension Rate Calculator E at the end of
section 1066B to link the maximum basic rate of disability support pension, for a
blind person who is otherwise in the same situation as described above, to the FTB
child rate applicable to an FTB child who has reached 13 years of age.
Youth allowance is calculated under the Youth Allowance Rate Calculator in
section 1067G.
The table in point 1067-B2 lists maximum basic rates of youth allowance for the
various categories of people who are not independent. Item 1 of this table provides
the maximum basic rate for a person who lives at home and is not yet 18 years old.
Item 11 omits the fortnightly amount in column 3 of item 1 and substitutes a
reference to the linked rate. This concept is then defined in new point 1067G-B2A
(inserted by item 13) by reference to the FTB child rate for an FTB child who has
reached 13 years of age (the annual amount in column 2 of item 2 of the table in
clause 7 of Schedule 1 to the Family Assistance Act) and provides a formula to
convert the relevant FTB child rate to a fortnightly amount.
Item 12 makes a consequential amendment to the note at the end of
point 1067G-B2.
The table in point 1067-B3 lists maximum basic rates of youth allowance for the
various categories of people who are independent and not long-term income support
students. Item 1 of this table provides the maximum basic rate for a person who is
an accommodated independent person and not yet 18 years of age. Item 3 of this
table provides the maximum basic rate for a person who is in supported state care
and not yet 18 years old.
Item 14 omits the fortnightly amounts in table items 1 and 3 in column 3 and
replaces the amounts with references to the linked rate. This concept is then
defined in new point 1067G-B3AAA (inserted by item 16) by reference to the
FTB child rate for an FTB child who has reached 13 years of age (the annual amount
in column 2 of item 2 of the table in clause 7 of Schedule 1 to the Family Assistance
Act), which also provides a formula to convert the relevant FTB child rate to a
fortnightly amount.
Item 15 makes a consequential amendment to the note at the end of
point 1067G-B3.
The amendments described above directly link certain youth allowance and disability
support pension maximum basic rates for under 18 year-olds to the FTB child rate
for an FTB child who has reached 13 years of age. As the relevant FTB child rate is
indexed on 1 July of each year, the linked youth allowance and disability support
pension rates will also be increased.
The amounts that have been omitted by the amendments described above would
have been subject to indexation or adjustment under the Social Security Act.
Items 17 to 21 make consequential amendments to remove references to these
amounts from the relevant indexation and adjustment provisions.
4
Schedule 1 - Payment rates
Item 22 is an application provision, which ensures that the new linked amounts are
used in working out the rate of youth allowance and disability support pension for
days on and after commencement (being 1 July 2018).
5
Schedule 2 - Family tax benefit Part B rate
Summary
From 1 July 2016, this Schedule will introduce a new rate structure for family tax
benefit Part B, and make other amendments to the rules for Part B, to:
increase the standard rate by $1,000.10 per year for families with a youngest
child aged under one;
introduce a reduced rate of $1,000.10 per year for single parent families with a
youngest child aged 13 to 16 (currently $2,737.50), and extend the $1,000.10
rate to couple grandparents with an FTB child in this age range;
remove family tax benefit Part B for couple families (other than grandparents)
with a youngest child aged 13 or over.
Background
Under the current rules, an individual's standard rate of family tax benefit Part B is
worked out using the table in clause 30 of Schedule 1 to the Family Assistance Act.
There are two different rates, depending on whether the individual's youngest child is
under five years of age or five years and over. An FTB child who has turned 16 is
disregarded for the purposes of family tax benefit Part B unless they are a senior
secondary school child (as defined in section 22B of the Family Assistance Act)
and the calendar year in which the child turned 18 has not ended.
From 1 July 2016, amendments made by this Schedule introduce a new rate
structure for family tax benefit Part B. Under the new structure, an individual's
standard rate will be increased by $1,000.10 per annum where their youngest child is
under one year of age. For a youngest child aged 13 to 16, the standard rate will be
reduced to $1,000.10 per annum. The standard Part B rates for other age groups
will not change.
Further, an FTB child who has turned 16 will be disregarded for the purposes of
family tax benefit Part B unless they are a senior secondary school child (as defined
in section 22B of the Family Assistance Act) and the calendar year in which the child
turned 16 has not ended. This changes the current age provisions, where families
can access family tax benefit Part B for an FTB child who is a senior secondary
school child until the end of the calendar year in which they turn 18 years old.
Amendments also ensure that an individual who is a member of a couple, with a
youngest child who has turned 13 years of age, will not be able to access family tax
benefit Part B. This rule will not, however, apply where the individual is a
grandparent of that FTB child.
6
Schedule 2 - Family tax benefit Part B rate
Explanation of the changes
Amendments to the Family Assistance Act
Subclause 29(3) of Schedule 1 to the Family Assistance Act currently disregards an
FTB child who has turned 16 from the calculation of an individual's Part B rate unless
the child is a senior secondary school child. Section 22B of the Family Assistance
Act defines a senior secondary school child.
Item 1 amends section 22B to provide a new definition of senior secondary school
child for the purposes of subclause 29(3). Under the new definition, a senior
secondary school child will be an individual (child) who is aged 16 where the
calendar year in which the individual turned 16 has not ended. Items 2 and 3 make
other necessary consequential amendments to section 22B.
Item 4 inserts a new clause 28D into Schedule 1 to the Family Assistance Act.
Subclause 28D(1) sets out the general rule that an individual cannot access family
tax benefit Part B if the individual is a member of a couple and their youngest FTB
child has turned 13. However, this rule does not apply where the individual is a
grandparent of that FTB child (subclause 28D(2) refers).
Subclauses 28D(3) and (4) then provide a definition of grandparent, which takes
account of biological, adoptive, step and relationship child-parent relationships and is
consistent with the definition that applies for the purposes of determining eligibility of
grandparents for the special grandparent rate where an individual is eligible for child
care benefit by fee reduction.
Clause 30 of Schedule 1 sets out the standard rates for family tax benefit Part B,
depending on the individual's family situation (that is, whether the individual's
youngest FTB child is under five years of age or is aged five or over). Item 6 repeals
the table in clause 30 and inserts a new table.
Under the new table, there will be four new standard rates for Part B.
The first new rate will apply where the individual's youngest FTB child is aged under
one year. This rate will be the equivalent of the current standard rate (Part B) that
applies where the youngest FTB child is aged under five, as it would have been
indexed on 1 July 2016 under the 'old' rules, plus $1,000.10. New subclause 30(2)
has this effect.
The second rate will apply where the individual's youngest FTB child is aged at least
one year but less than five years of age. This rate will be the equivalent of the
current standard rate (Part B) that applies where the youngest FTB child is aged
under five years, as it would have been indexed on 1 July 2016 under the 'old' rules.
New subclause 30(3) has this effect.
7
Schedule 2 - Family tax benefit Part B rate
The third rate will apply where the individual's youngest FTB child is aged at least
five years but less than 13 years of age. This rate will be the equivalent of the
current standard rate (Part B) that applies where the youngest FTB child is aged five
or over, as it would have been indexed on 1 July 2016 under the 'old' rules.
New subclause 30(4) has this effect.
The fourth rate will apply where the individual's youngest FTB child is aged at least
13 years but less than 17 years of age. This rate will be $1,000.10.
The new amounts in the table in clause 30 will apply from 1 July 2016, and these
amounts will be indexed for the first time on 1 July 2017 in accordance with the usual
rules (subitem 10(2) refers).
Notes at the end of the new table refer the reader to the rules in subclause 29(3)
and new clause 28D.
Item 5 makes a consequential amendment to subclause 29(3), which is required
because of the insertion of the new table in clause 30.
Item 7 makes a minor consequential amendment to clause 2 of Schedule 4 to the
Family Assistance Act.
Item 8 makes a minor change to the indexation provisions (base quarter) as the first
indexation of the new amounts in the table in clause 30 of Schedule 1 will occur on
1 July 2017.
Item 10 is an application provision. It provides that the amendments made by this
Schedule apply in working out the rate of family tax benefit for days on or after
commencement (that is, 1 July 2016). It also provides that the first indexation of the
new amounts in the table in subclause 30(1) of Schedule 1 is to be on 1 July 2017.
8
Schedule 3 - Family tax benefit supplements
Summary
This Schedule will phase out the family tax benefit Part A supplement by reducing it
to $602.25 a year from 1 July 2016, and to $302.95 a year from 1 July 2017. It will
then be withdrawn from 1 July 2018.
The family tax benefit Part B supplement will also be phased out. It will be reduced
to $302.95 a year from 1 July 2016, and to $153.30 a year from 1 July 2017. It will
then be withdrawn from 1 July 2018.
Background
The family tax benefit Part A and B supplements are components of the rate of
family tax benefit, and are added into the rate after the end of the relevant income
year when certain conditions are satisfied.
Starting from 1 July 2016, the end-of-year family tax benefit Part A and family tax
benefit Part B supplements will be phased out. These amounts will not be available
from 1 July 2018.
Explanation of the changes
Part 1 - Amendments commencing 1 July 2016
Amendments to the Family Assistance Act
On 1 July 2016, the end-of-year family tax benefit Part A and family tax benefit
Part B supplements will be reduced.
Clause 31A of Schedule 1 to the Family Assistance Act provides for the calculation
of the FTB Part B supplement (referred to in clause 31A as the FTB (B) gross
supplement amount). Item 2 repeals subclauses 31A(2) and (3) and substitutes a
new subclause 31A(2), which resets the FTB (B) gross supplement amount to
$302.95.
Clause 38A of Schedule 1 provides for the calculation of the family tax benefit Part A
supplement (referred to in clause 38A as the FTB gross supplement amount),
which is a per-child amount. Item 3 repeals subclauses 38A(3)
and (4)and substitutes a new subclause 38A(3), which resets the FTB gross
supplement amount to $602.25.
The FTB gross supplement amount and the FTB (B) gross supplement amount are
usually indexed in accordance with movements in the CPI on 1 July each year
(although indexation of these amounts is currently paused under clause 3(8) of
Schedule 4 to the Family Assistance Act). The amendments made by items 3 and 4
ensure that these amounts are no longer subject to indexation.
9
Schedule 3 - Family tax benefit supplements
Item 5 is an application provision. It provides that the amendments made by Part 1
this Schedule apply in working out the rate of family tax benefit for days on or after
commencement (1 July 2016).
Part 2 - Amendments commencing 1 July 2017
Amendments to the Family Assistance Act
On 1 July 2017, the end-of-year family tax benefit Part A and family tax benefit
Part B supplements will be further reduced.
Item 6 repeals subclause 31A(2) of Schedule 1 and substitutes a new
subclause 31A(2), which resets the FTB (B) gross supplement amount to $153.30.
Item 7 repeals subclause 38A(3) and substitutes a new subclause 38A(3), which
resets the FTB gross supplement amount to $302.95.
Item 8 is an application provision. It provides that the amendments made by Part 2
of this Schedule apply in working out the rate of family tax benefit for days on or after
commencement (1 July 2017).
Part 3 - Amendments commencing 1 July 2018
Amendments to the Family Assistance Act
From 1 July 2018, the end-of-year family tax benefit Part A and family tax benefit
Part B supplements will no longer be available.
Division 2A of Part 4 of Schedule 1 to the Family Assistance Act provides for the rate
of the family tax benefit Part B supplement. Item 20 repeals this Division.
Division 2A of Part 5 of Schedule 1 to the Family Assistance Act provides for the rate
of the family tax benefit Part A supplement. Item 21 repeals this Division.
The method statements in clauses 3 and 25 of Schedule 1 set out the steps to be
taken in working out an individual's Part A rate where method 1 and method 2 apply
respectively. Items 13 and 16 remove the paragraphs in these method statements
which provide for the family tax benefit Part A supplement to be included in the rate.
Clauses 29 and 29A of Schedule 1 provide rules for calculating an individual's Part B
rate. Items 17 to 19 amend these clauses to remove paragraphs which provide for
the family tax benefit Part B supplement to be included in the rate.
An individual's supplement amount (defined by reference to the family tax benefit
Part A supplement) is relevant in working out an individual's maintenance income
ceiling for certain purposes. The relevant provisions are clauses 24N and 24R of
Schedule 1 to the Family Assistance Act. Items 14 and 15 make consequential
amendments to these provisions to reflect the repeal of the family tax benefit Part A
supplement.
10
Schedule 3 - Family tax benefit supplements
Under the current rules, payment of the family tax benefit Part A supplement is linked
to the health check and immunisation requirements through sections 61A and 61B of
the Family Assistance Act. Item 12 repeals these sections, while items 9 to 11
make other necessary consequential amendments.
Amendments to the Family Assistance Administration Act
Section 32A of the Family Assistance Administration Act currently ensures that the
family tax benefit supplements are disregarded in calculating an individual's rate of
family tax benefit unless and until the relevant family tax benefit reconciliation
conditions are satisfied. Section 105A then requires that the Secretary review an
individual's rate under section 105 where the family tax benefit reconciliation
conditions are satisfied so as to include the supplements in the rate. As a
consequence of the repeal of the family tax benefit supplements, item 22 repeals
section 32A, while item 25 repeals section 105A.
However, the family tax benefit reconciliation conditions are also relevant for other
purposes (such as the maintenance income test) and are therefore retained.
Item 23 makes some technical adjustments to the wording of section 32B so that the
family tax benefit reconciliation conditions can continue to operate.
Item 24 makes a consequential amendment to the definition of adjusted Part A rate
in subsection 35D(4) to remove a reference to the repealed clause 38A of
Schedule 1 to the Family Assistance Act.
Items 26 to 31 make consequential amendments to various review provisions, which
refer to provisions that are being repealed.
Item 32 is an application provision. It provides that the amendments made by Part 3
of this Schedule apply in working out the rate of family tax benefit for days on or after
commencement (1 July 2018).
11
STATEMENTS OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011
SOCIAL SERVICES LEGISLATION AMENDMENT (FAMILY PAYMENTS
STRUCTURAL REFORM AND PARTICIPATION MEASURES) BILL 2015
Schedule 1 - Payment rates
This Schedule 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 Schedule
The Schedule will deliver more timely assistance to provide better help to families
(including income support families) with day-to-day living expenses, and help support
children to grow up healthy and participate in educational opportunities,
in preparation for becoming self-reliant adults.
From 1 July 2018:
Family tax benefit Part A fortnightly rates will increase by $10.08 for each
FTB child in the family aged up to 19.
An equivalent rate increase, of around $10.44 per fortnight, will apply to youth
allowance recipients aged under 18 and living at home.
Aligning these two rates of payment will avoid confusion for families, and make
sure there is no financial incentive for an FTB child to leave full-time secondary
study to claim youth allowance.
The rate increases will also flow through to certain other payment rates for young
people - the under-18 rates of disability support pension, special benefit and
ABSTUDY.
Human rights implications
The Schedule engages the following human rights:
Right to social security
The Schedule is consistent with supporting the right to social security.
From 1 July 2018, the Schedule will provide families receiving the standard
FTB Part rates a rate increase of $10.08 per fortnight. An equivalent rate increase,
of around $10.44 per fortnight, will apply to youth allowance recipients aged
under 18 and living at home. This rate increase will also flow on to other payment
rates that are the same payment rate as the under 18 at home youth allowance
maximum basic rate.
1
Statements of compatibility with human rights
Conclusion
The amendments in the Schedule are compatible with human rights because they do
not limit access to social security or family payments.
2
Statements of compatibility with human rights
Schedule 2 - Family tax benefit Part B rate
This Schedule 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 Schedule
This Schedule makes amendments to the A New Tax System (Family Assistance)
Act 1999.
From 1 July 2016, the Schedule will introduce a new rate structure for family tax
benefit Part B, and make other amendments to the rules for Part B, to:
increase the standard rate by $1,000.10 per year for families with a youngest
child aged under one;
introduce a reduced rate of $1,000.10 per year for single parent families with
a youngest child aged 13 to 16 (currently $2,784.95), and extend the
$1,000.10 rate to couple grandparents with an FTB child in this age range;
remove family tax benefit Part B for couple families (other than grandparents)
with a youngest child aged 13 or over.
These reforms will improve the sustainability of the family payments system over the
long term, while continuing to provide assistance to families in need.
Human rights implications
These amendments engage the following human rights:
Right to social security
Article 9 of the International Covenant on Economic, Social and Cultural Rights
recognises the right of everyone to social security, while article 11 recognises the
right to an adequate standard of living for an individual and their family, including
adequate food, clothing and housing, and the continuous improvement of living
conditions.
Rights of the child
Article 26 of the Convention on the Rights of the Child requires countries to
recognise the right of the child to benefit from social security. Benefits should take
into account the resources and the circumstances of the child and persons having
responsibility for the maintenance of the child.
The objective of the family payment reform measures is to ensure that the family
payments system remains sustainable in the long term. The United Nations
Committee on Economic, Cultural and Social Rights recognises that a social security
scheme should be sustainable, and that the conditions for benefits must be
reasonable and proportionate.
3
Statements of compatibility with human rights
To the extent that introducing a new rate structure for family tax benefit Part B limits
the right to social security, this is reasonable and proportionate. Families will benefit
from an increased rate of family tax benefit Part B in the first year of a child's life.
This supports families who often have a reduced income in this period as a result of
new caring requirements. For families with older children, family tax benefit Part B
will be better targeted, encouraging parents to participate in the workforce when care
requirements are reduced. Single parents and couple grandparents will continue to
access a rate of Part B until the end of the calendar year in which their youngest
child turns 16, recognising that these families may have fewer resources to meet
living costs.
Family tax benefit payments will continue to be provided to families to accommodate
the cost of raising children. Families with low incomes will also continue to receive
ongoing assistance through various Australian Government payments, which will
assist them in maintaining an adequate standard of living.
Conclusion
These amendments are compatible with human rights because they advance the
protection of human rights and, to the extent that these changes limit access to
family payments, these limitations are reasonable and proportionate and families are
otherwise provided for.
4
Statements of compatibility with human rights
Schedule 3 - Family tax benefit supplements
This Schedule 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 Schedule
The Schedule will phase out the family tax benefit Part A and Part B supplements by
reducing them each year from 1 July 2016. These supplements will then be
withdrawn from 1 July 2018. The family tax benefit Part A and B supplements are
components of the rate of family tax benefit, and are added into the rate after the end
of the relevant income year when certain conditions are satisfied.
Human rights implications
These amendments are likely to engage the following human rights:
Right to social security
Article 9 of the International Covenant on Economic, Social and Cultural Rights
recognises the right of everyone to benefit from social security, while article 11
recognises the right to an adequate standard of living for an individual and their
family, including adequate food, clothing and housing, and the continuous
improvement of living conditions. This right is engaged by the reduction and
eventual removal of the end-of-year supplements for family tax benefit Part A and
family tax benefit Part B. Families affected by this measure are still eligible to
receive fortnightly payments of family tax benefit to assist with the costs of raising
children. The purpose of these fortnightly payments is to ensure an adequate
standard of living for Australian children.
Rights of the child
Article 26 of the Convention on the Rights of the Child requires countries to
recognise the right of the child to benefit from social security. Benefits should take
into account the resources and the circumstances of the child and persons having
responsibility for the maintenance of the child.
The United Nations Committee on Economic, Cultural and Social Rights has stated
that a social security scheme should be sustainable and that the conditions for
benefits must be reasonable, proportionate and transparent. This right is engaged
by the reduction and eventual removal of the end-of-year supplements for family tax
benefit Part A and family tax benefit Part B. However, this limitation is necessary
and proportionate to the legitimate aim of ensuring that family tax benefit as a social
security scheme continues to be sustainable. Families affected by this measure are
still eligible to receive fortnightly payments of family tax benefit to assist with the
costs of raising children.
5
Statements of compatibility with human rights
Conclusion
These amendments are compatible with human rights because they do not limit or
preclude people from gaining or maintaining access to social security in Australia
and, to the extent that these changes limit access to family payments, these
limitations are reasonable and proportionate.
[Circulated by the authority of the Minister for Social Services,
the Hon Christian Porter MP]
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