Tanya Plibersek (Sydney, Australian Labor Party, Shadow Minister for Childcare) Share this | Hansard source

I rise today to speak on the Families, Community Services and Indigenous Affairs and Other Legislation (2006 Budget and Other Measures) Bill 2006. This bill seeks to implement a number of 2006 budget measures, certain other measures associated with the 2005 budget and the government’s welfare changes, as well as to introduce a new disaster recovery payment. The government plans to implement various of these measures as of 1 July. Labor intends to support the passage of this legislation, which will provide much needed financial assistance to Australian families.

Labor is pleased to note that the government has picked up on some of the concerns that Labor raised at the last election in regard to the family payments income-free threshold and the large-family supplement and has introduced some changes in these areas. The principal measure in the bill is an increase in the income threshold for family tax benefit part A. This will increase from the current $33,361 to $40,000. This will then be subject to annual CPI indexation from 1 July 2007. The 2005 budget included a measure to increase the threshold to $37,500 from 1 July 2006, so the measure in this bill supersedes that previous increase. As a result, half a million families will receive, on average, an additional $37 per fortnight as of 1 July. The measure will cost a little over $993 million over four years.

We also note that as a result of this change in the threshold more than 40,000 families will now become eligible for the low-income health care card. We are certainly pleased that the government has recognised that the current income threshold is too low and has recognised that this low threshold has been a disincentive for people moving into the workforce. At the last election Labor proposed an increased threshold for the commencement of the withdrawal of family payments. We are certainly glad that the government has listened to Labor’s concerns and picked up our suggestions.

Families are under increased financial pressure—we all know that; we hear it every day from our constituents. They are paying more for their petrol, they are paying more for their private health insurance, they are feeling the squeeze when it comes to child care and other costs associated with going to work and, in an environment where they are not certain of their employment at the end of the day, let alone at the end of the week, this added financial support is welcome. Unfortunately for a lot of families it will be pretty much chewed up by the increased expenses they face in their daily lives.

The bill also makes a significant change to eligibility for the large-family supplement. Naturally, Labor also welcome this. Currently the supplement of $248.20 a year is paid on the birth of the fourth child and any subsequent children in each family. Under this bill the supplement will be paid to all families who have a third child, and of course will continue to be paid for each additional child. The cost of this change will be just under $497 million over four years. Labor recognise the financial strains felt by many larger families and supports this additional assistance. We welcome the fact that the government has picked up on another policy idea raised by Labor at the last election.

In 2004 we proposed the doubling of the then large-family supplement to $489.10 a year for each child. Under the change in this legislation, a family with four children will receive the supplement for both their third and fourth child. In a sense you could say then that the benefit has been doubled. Families with more than four children will, of course, receive the extra $248, paid now for their third child, although they will not receive the same boost that would have been paid under Labor’s proposal. Nevertheless, we are certainly pleased that the government has followed our lead in recognising the financial pressure that many large families are feeling. That has led to an increase in their assistance.

I will now turn to some of the other measures outlined in this legislation. The bill seeks to extend eligibility for the utilities allowance to people who are under the age pension age but who are in receipt of the mature age allowance, widow allowance and partner allowance. This will provide the individuals affected with an additional $102 per annum and cost about $27½ million over four years.

The bill also introduces a new disaster recovery payment into the social security law. Previously, disaster recovery payments have been made on an ad hoc basis, such as those paid to the people affected by Cyclone Larry. This payment will be non-means-tested and non-taxable and will be paid to all Australian residents affected by an eligible natural or non-natural disaster in Australia or overseas. The payment rate will be $1,000 for an adult and $400 for a child. This measure will take effect as of 1 December this year and total resourcing is estimated at $13.2 million over four years.

The bill also seeks to implement a maintenance income credit from 1 July. This will allow individuals to claim a previous year’s maintenance income-free area for family tax benefit part A on late child support payments received in the current year. This means that individuals who receive backdated child support payments from a previous year do not face a reduction in their current year’s family tax benefit part A payments. Certainly we see the importance of this measure, which will cost just under $52 million over four years.

The bill introduces two changes with regard to severely disabled people. The first is an extension of the qualification for the carer payment to carers of children under 16 years with a severe disability. The extended eligibility for the carer payment will exempt current recipients of the parenting payment who meet the qualification from the activity tests applied under the government’s Welfare to Work changes. Resourcing for this is $55 million over four years, and naturally Labor welcome this. The notion that parents caring for their disabled child would be forced to jump through hoops and have to prove that they were looking for work was cruel and unnecessary, and we welcome this change.

Other measures will allow families with the financial means to do so to set up a trust to provide for the future care and accommodation of a family member with a severe disability. The value of the trust can be up to $500,000 without affecting the person’s pension eligibility. Gifts to the trust to a total of $500,000 from parents or immediate family members will not affect the donor’s eligibility for social security or Veterans’ Entitlements Act payments. Resourcing for this measure is just over $218 million over four years. It is important to acknowledge at this time that many parents who are caring for severely disabled children have very deep and very real fears about what will happen to their children as the parents age and are no longer able to look after them, and Labor hopes that this measure will allow some peace of mind for those people into the future.

The bill also implements the recommendations of the Uhrig review with regard to the governance arrangements of the Australian Institute of Family Studies. Further, the bill seeks to make minor technical amendments to the social security law to address certain anomalies. In conclusion, Labor has indicated its support for the assistance to families outlined in the budget and will support this bill today.

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