Kevin Andrews (Menzies, Liberal Party, Shadow Minister for Families, Housing and Human Services) Share this | Hansard source

I rise to speak on the Families, Housing, Community Services, Indigenous Affairs and Other Legislation Amendment (Further Election Commitments and Other Measures) Bill 2011. This bill seeks to amend various acts to achieve a range of amendments to existing legislation: firstly, with respect to the A New Tax System (Family Assistance) Act, to provide for modified arrangements for advance payments of family tax benefit and the payment of FTB part A supplement for a child turning four, conditional on that child receiving a health check prior to starting school; secondly, with respect to the Child Support (Assessment) Act 1989, to determine a parent's taxable income by using their previous taxable income, indexed by growth in wages, when a tax return has not been lodged; thirdly, with respect to the Social Security Act 1991, to require payers of compensation to notify Centrelink of proposed payments of compensation; and, fourthly, to make various technical amendments to the A New Tax System (Family Assistance) Act 1999, the A New Tax System (Family Assistance) (Administration) Act 1999 and the Child Support (Assessment) Act 1989.

The bill would make amendments to take effect from 1 July regarding family benefits. This includes rules for determining whether an individual is entitled to a family tax benefit advance and the amount of the advance, the rules as to reducing the individual's rate of FTB part A to effect repayment of the advance, and the circumstances in which a debt for the unpaid amount of the FTB advance is raised.

For the 2011-12 year, the maximum advance available will be limited to $1,000 and the minimum will be limited to $160.96. For subsequent years, the maximum and minimum amounts will be linked to the FTB child rate for one FTB child who is under 13 years of age, which is indexed on 1 July of each year. If the individual is repaying a previous amount, then their maximum amount will be reduced by the original amount of the previous advance. The default repayment period over which the advance will be repaid by a reduction in the individual's FTB part A instalment rate is 182 days, or 26 weeks. This period may span two financial years. However, the repayment period may be varied depending on the individual's circumstances. The new measures relating to the repayment of advance debts would see more flexible arrangements that will result in an individual generally repaying their advance from ongoing reductions of the part A rate, rather than a debt arising.

The health checks for young children measure will make the payment of the FTB part A supplement for a child turning four in a particular income year conditional on the child undertaking a health check. This measure will commence on 1 July 2011. The proposed amendments relating to 'determinations of adjustable taxable income' would modify the current rules applicable to the Child Support Registrar in determining a person's adjusted taxable income where a parent's taxable income has not been formally assessed. A new, more accurate default income arrangement will be introduced that uses a parent's previous taxable income, indexed by growth in wages, instead of a lower default income—that is, two-thirds of male total average weekly earnings—in cases where they have not lodged a tax return. These amendments replace the current rules for determining a parent's adjustable taxable income with new rules that will more accurately reflect a parent's income and ensure better support for children.

The proposed provisions relating to 'notice of payments of recompense for personal injuries' require payers of compensation, such as insurance companies, to notify Centrelink of proposed payments of compensation. Centrelink will then use this information to determine the social security entitlements of the compensation recipient or their partner. This will reduce the risk of individuals incurring unnecessary debt to the Commonwealth and receiving income support payments to which they or their partner are not entitled. Currently, social security recipients are required to notify Centrelink when they or their partner are to receive a compensation payment. The new provisions will streamline the notification process for compensation payments to social security recipients or their partners to ensure they receive their correct entitlements.

The bill also makes minor amendments to the family assistance law and child support legislation to clarify technical or drafting matters and to ensure that the legislation operates as intended. While the coalition will not oppose this bill, we on this side are concerned that this bill does not ease the cost-of-living pressures on Australian families. That is because the Labor-Greens alliance does not understand the pressure that Australian families are under. At a time when Australian families are struggling with the rising cost of living, cutting $2 billion from family benefits will put many under even more pressure. Over 2.1 million families will lose some support as a result of the real value of the family tax benefit supplement being cut. This is just the latest assault on families, delivered by this directionless government. Indeed, many families with parents earning average wages will lose hundreds of dollars a year through the freezing of the threshold at which families start losing base rate family tax benefit A. The family with a combined income of $110,000—for instance, with each parent earning $55,000 or one parent earning $65,000 and one earning $40,000—will lose $853.50 a year in 2012-13 if they have two children under 13 and $906.75 if they have three young children. Losing this support will hurt families, who have already seen many of their bills increase dramatically in recent years. Since December 2007, electricity prices have increased by an average of 51 per cent across Australia, the overall cost of food has increased by 13 per cent and education costs such as school fees have increased by an average of 24 per cent. With a carbon tax on its way—if this government gets its way—and mortgage interest rates having increased seven times since September 2009, repayments on the average mortgage have increased by over $500 per month in a little under 18 months.

The working families of 2007 have indeed become the forgotten families of 2011. Family benefits are being hit. Changes to private health insurance will also hit families. Labor's ideological disdain for independent schools will also hurt families. Labor's attack on regional students and youth allowance has already demonstrated the ruthlessness with which this government is treating those families outside our cities. The Gillard Labor government's decision to rip $50 million out of family relationship services will have a serious impact in the sector that strives to keep families together, including many of these families that are feeling pressure at the moment.

This Labor government will stand condemned for its assault on families. It will stand condemned for its alliance—its partnership—with the extremist Greens. In stark contrast, the coalition is committed to easing the financial burden on families by rejecting Labor's new taxes and paying back Labor's debt as soon as possible. This will take pressure off interest rates and living costs for all Australians. This bill is therefore yet another missed opportunity, a disappointment we on this side of the House have unfortunately become expectant of from this disastrous and directionless government.

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