Bill Shorten (Maribyrnong, Australian Labor Party, Parliamentary Secretary for Disabilities and Children's Services) Share this | Hansard source

In the Family Assistance and Other Legislation Amendment (2008 Budget and Other Measures) Bill 2009 a measure on family tax benefit from the 2008 budget is introduced, along with two other measures from the Families, Housing, Community Services and Indigenous Affairs portfolio.

The 2008 budget will streamline the administration of family tax benefit by removing from 1 July 2009 the option of claiming payments through the tax system. Removing the tax system option for the delivery of family tax benefit payments will simplify the system and improve consistency for customers and will reduce duplication in the delivery of payments. Only around seven per cent of current family tax benefit customers claim through the Australian Taxation Office. Customs will still be able to choose between fortnightly payments, including end-of-year top-ups if applicable, and an annual lump sum by dealing with Centrelink and Medicare.

Importantly, payment rates will not change as a result of this adjustment in the delivery arrangements. The Australian Taxation Office and Centrelink will still exchange information as necessary to make sure entitlements are as accurate as possible. Adjusted taxable income will still be used for family tax benefit income testing and end-of-year reconciliation processes. Also, tax refunds will be available to offset family tax benefit debts and vice versa. In most of these administrative respects, customers should notice no change in the arrangements that they are used to.

I note that in evidence to the recently completed Senate inquiry on this bill the Commonwealth Ombudsman welcomed these proposed arrangements, particularly that an individual’s taxable income is more routinely verified to determine entitlement. From their experience:

… the differential processes resulted in inconsistencies and were particularly vulnerable to error, which often resulted in debts, especially in shared-care cases.

One of the non-budget measures in the bill was foreshadowed by the government in its announcement on 23 October 2008 in response to the recommendations of the Northern Territory Emergency Response Review Board. This measure will make sure that people who are subject to the Northern Territory income management regime are able to appeal to the Social Security Appeals Tribunal and the Administrative Appeals Tribunal in relation to their income support and family payments, just as all other Australians can. As was also announced in that response, further measures will be introduced in the 2009 spring sittings.

The last measure in this bill makes amendments to implement part of the government’s announced reforms to the Community Development Employment Project, CDEP, program. Those reforms are intended to improve employment participation for Indigenous Australians. This measure will give new CDEP participants on or after 1 July 2009 access to the CDEP program while they receive income support payments instead of CDEP wages from CDEP providers. Through these amendments new CDEP participants will receive the CDEP scheme participant supplement because these participants will be able to claim additional benefits through the income support system.

The amendments will, however, allow continuing CDEP participants to receive CDEP wages from CDEP providers. The CDEP scheme participant supplement will continue until 30 June 2011. At that point continuing participants will transfer to income support.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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