Jenny Macklin (Jagajaga, Australian Labor Party, Minister for Disability Reform) Share this | Hansard source

I present a supplementary explanatory memorandum to the bill. By leave—I move:

Government amendments (1) to (8) as circulated together.

(1) Clause 2, page 2 (table item 2), omit "items 1 to 3", substitute "items 1 to 3B".

(2) Clause 2, page 2 (table item 6), omit "items 10 and 11", substitute "item 11".

(3) Clause 2, page 2 (after table item 9), insert:

(4) Schedule 1, heading, page 4 (line 1), omit the heading, substitute:

Schedule 1—Reduction of baby bonus from 1 July 2013

(5) Schedule 1, item 3, page 5 (lines 17 to 19), omit the item, substitute:

3 Subclause 3(9) of Schedule 4 (heading)

  Omit ", 1July 2013 and 1July 2014", substitute "and 1July 2013".

3A Subclause 3(9) of Schedule 4

  Omit ", 1 July 2013 and 1 July 2014", substitute "and 1 July 2013".

3B Subclause 3(9) of Schedule 4 (note)

  Repeal the note.

(6) Schedule 1, item 10, page 6 (line 30) to page 7 (line 7), omit the item.

(7) Page 9 (after line 8), after Schedule 2, insert:

Schedule 2A—Replacement of baby bonus from 1 March 2014

Part 1—Newborn supplement for Part A rate of family tax benefit

A New Tax System (Family Assistance) Act 1999

1 Subsection 3(1) (at the end of the definition of family tax benefit )

  Add "(and includes any amount under section 58AA)".

2 After section 58

  Insert:

58AA Newborn upfront payment of family tax benefit if newborn supplement added into Part A rate

(1) If, under Division 1A of Part 5 of Schedule 1, an amount of newborn supplement is added in relation to an individual and an FTB child of the individual, then the individual is entitled to be paid, as an amount of family tax benefit, $500 in respect of the FTB child.

Note: The amount is to be paid as a single lump sum: see section 24A of the Family Assistance Administration Act.

Exceptions

(2) Subsection (1) does not apply in relation to an individual and an FTB child of the individual if another individual has received an amount under this section in respect of that child while the individual and the other individual were members of the same couple.

(3) Subsection (1) does not apply in relation to an individual and an FTB child of the individual in the circumstances prescribed in a legislative instrument under subclause 35A(12) of Schedule 1.

One amount only in respect of FTB child

(4) An individual cannot receive more than one amount under this section in respect of an FTB child of the individual.

3 Clause 3 of Schedule 1 (after paragraph (b) of step 1 of the method statement)

  Insert:

  (ba) the individual's newborn supplement (if any) under Division 1A of Part 5 (clauses 35A and 35B);

4 Clause 24N of Schedule 1 (after step 2 of the method statement)

  Insert:

Step 2A.   Work out the individual's newborn supplement (if any) under Division 1A of Part 5 (clauses 35A and 35B) for FTB children of the individual in respect of whom the individual, or the individual's partner, is entitled to apply for maintenance income from the maintenance payer.

5 Clause 25 of Schedule 1 (after paragraph (b) of step 1 of the method statement)

  Insert:

  (ba) the individual's newborn supplement (if any) under Division 1A of Part 5 (clauses 35A and 35B);

6 After Division 1 of Part 5 of Schedule 1

  Insert:

Division 1A—Newborn supplement

35A Eligibility for newborn supplement

(1) Subject to this clause, an amount of newborn supplement is to be added, for a day, in working out an individual's maximum rate under clause 3, or an individual's Method 2 base rate under clause 25, if subclause (2), (5) or (7) of this clause applies for that day in relation to the individual and an FTB child of the individual.

Parent of child

(2) This subclause applies for a day in relation to the individual and an FTB child of the individual if:

  (a) the individual, or the individual's partner, is a parent of the child on that day; and

  (b) the child is aged less than one on that day; and

  (c) if this subclause were to apply for that day, the individual's Part A rate, disregarding reductions (if any) under clause 5 or 25A of this Schedule and disregarding section 58A and subclauses 38AA(3) and 38AF(3) of this Schedule, would be greater than nil on that day; and

  (d) that day occurs in the period of 13 weeks beginning on the first day that paragraphs (a) to (c) are satisfied; and

  (e) if the individual is, under a law (the registration law) of a State or Territory, responsible (whether alone or jointly) for registering the birth of the child in accordance with the law—the Secretary is notified, or becomes aware, at any time before the end of whichever of the following periods is applicable, that the birth registration requirement is met:

     (i) the first income year after the income year (the relevant income year) in which occurs the last day on which paragraphs (a) to (d) are satisfied;

     (ii) if a further period in respect of the individual's claim for payment of family tax benefit in respect of the child was allowed under paragraph 10(2)(b) of the Family Assistance Administration Act and that claim is for a past period falling within the relevant income year—such further period (if any) as the Secretary allows in special circumstances.

(3) For the purposes of paragraph (2)(e), the birth registration requirement is the requirement that:

  (a) the birth of the child has been registered in accordance with the registration law; or

  (b) the individual, or the individual's partner, has applied to have the birth of the child registered in accordance with the registration law.

(4) Any further period allowed by the Secretary under subparagraph (2)(e)(ii) must end no later than the end of the second income year after the relevant income year.

Child entrusted to care of individual or individual ' s partner

(5) This subclause applies for a day in relation to the individual and an FTB child of the individual if:

  (a) neither the individual, nor the individual's partner, is a parent of the child on that day; and

  (b) on or before that day, the child became entrusted to the care of the individual or the individual's partner; and

  (c) the child is aged less than one on that day; and

  (d) if this subclause were to apply for that day, the individual's Part A rate, disregarding reductions (if any) under clause 5 or 25A of this Schedule and disregarding section 58A and subclauses 38AA(3) and 38AF(3) of this Schedule, would be greater than nil on that day; and

  (e) that day occurs in the period of 13 weeks beginning on the first day that paragraphs (a) to (d) are satisfied.

(6) However, subclause (5) does not apply, and is taken never to have applied, in relation to the individual and the FTB child of the individual if the child is not an FTB child of the individual for a continuous period of at least 13 weeks beginning on the first day that paragraphs (5)(a) to (d) are satisfied.

Adoption

(7) This subclause applies for a day in relation to the individual and an FTB child of the individual if:

  (a) on or before that day, the child became entrusted to the care of the individual or the individual's partner; and

  (b) it is an authorised party that entrusts the child to the care of the individual or the individual's partner; and

  (c) the authorised party does so as part of the process for the adoption of the child by the individual or the individual's partner; and

  (d) if this subclause were to apply for that day, the individual's Part A rate, disregarding reductions (if any) under clause 5 or 25A of this Schedule and disregarding section 58A and subclauses 38AA(3) and 38AF(3) of this Schedule, would be greater than nil on that day; and

  (e) that day occurs in the period of 13 weeks beginning on the first day that paragraphs (a) to (d) are satisfied; and

  (f) that day occurs before the end of the period of 12 months beginning on the day the child became entrusted to the care of the individual or the individual's partner.

Exceptions

(8) This clause does not apply, and is taken never to have applied, in relation to the individual and the FTB child of the individual if parental leave pay is payable to the individual for that child.

(9) This clause does not apply, and is taken never to have applied, in relation to the individual and the FTB child of the individual if:

  (a) parental leave pay is payable to a person (other than the individual) for that child; and

  (b) the person and the individual are members of a couple for:

     (i) if the person's PPL period is 13 weeks or more—at least 13 weeks of that PPL period; or

     (ii) if the person's PPL period is less than 13 weeks—the whole of that PPL period.

(10) If:

  (a) under this clause, an amount of newborn supplement is added in relation to an individual and an FTB child of the individual for a period of 13 weeks; and

  (b) the individual is a member of a couple throughout that period;

then this clause does not apply in relation to the other member of that couple and that child.

(11) An amount of newborn supplement is not to be added under this clause for a day or days in relation to an individual and an FTB child of the individual in the circumstances prescribed in a legislative instrument under subclause (12).

(12) The Minister may, by legislative instrument, prescribe circumstances for the purposes of either or both of subsection 58AA(3) and subclause (11) of this clause.

(13) The circumstances, in relation to an individual and an FTB child of the individual, must relate to one or more of the following:

  (a) the payability of parental leave pay to another individual for that child;

  (b) the addition of newborn supplement under this clause in relation to another individual and that child;

  (c) the individual being a member of a couple or a former member of a couple.

Definition

(14) In this clause:

  parent includes a relationship parent.

35B Annualised rate of newborn supplement

General rule

(1) Subject to this clause, the amount of newborn supplement for an individual in respect of an FTB child is as follows:

  (a) if subclause 35A(2) applies and the child is the first child born alive to the woman who gave birth to the child—the amount worked out using the formula:

     $1501.50 x 365/91

  (b) if subclause 35A(5) applies and the child is the first child that becomes entrusted to the care of the individual or the individual's partner—the amount worked out using the formula:

     $1501.50 x 365/91

  (c) if subclause 35A(7) applies and the child is the first child that becomes entrusted to the care of the individual, or the individual's partner, in the circumstances mentioned in paragraphs 35A(7)(a) to (c)—the amount worked out using the formula:

     $1501.50 x 365/91

  (d) otherwise—the amount worked out using the formula:

     $500.50 x 365/91

Note: The amount of the newborn supplement added under this Division forms part of the calculation of an individual's annual rate of family tax benefit, which is then converted to a daily rate of family tax benefit: see subsection 58(3). That daily rate, to the extent it relates to the newborn supplement, is paid for a maximum of 13 weeks: see clause 35A.

Multiple children cases

(2) If subclause 35A(2) applies in relation to an individual and 2 or more children born during the same multiple birth, the amount of newborn supplement for the individual in respect of each child is the amount worked out using the formula:

     $1501.50 x 365/91

(3) If subclause 35A(5) applies in relation to an individual and 2 or more children who become entrusted to the care of the individual, or the individual's partner, as part of the same entrustment to care process, the amount of newborn supplement for the individual in respect of each child is the amount worked out using the formula:

     $1501.50 x 365/91

(4) If subclause 35A(7) applies in relation to an individual and 2 or more children who become entrusted to the care of the individual, or the individual's partner, as part of the same adoption process, the amount of newborn supplement for the individual in respect of each child is the amount worked out using the formula:

     $1501.50 x 365/91

7 Clause 2 of Schedule 4 (after table item 7)

Insert:

8 Subclause 3(1) of Schedule 4 (after table item 7)

Insert:

9 Subclause 3(7) of Schedule 4

  Omit ", the FTB income limit (B) and the baby bonus income limit", substitute "and the FTB income limit (B)".

10 Subclause 3(9) of Schedule 4

  Repeal the subclause, substitute:

First indexation of newborn supplement and newborn upfront payment

(9) The first indexation under subclause (1) of the newborn supplement and the newborn upfront payment is to take place on 1 July 2014.

A New Tax System (Family Assistance) (Administration) Act 1999

11 Section 5

  Before "The", insert "(1)".

12 At the end of section 5

  Add:

(2) A claim is not required for an amount of family tax benefit under section 58AA of the Family Assistance Act.

13 Section 24 (heading)

  Repeal the heading, substitute:

24 Payments of family tax benefit for a past period or by single payment/in substitution because of the death of another individual

14 After section 24

  Insert:

24A Other payments of family tax benefit

(1) If an individual is entitled to be paid an amount of family tax benefit under section 58AA of the Family Assistance Act, the Secretary must pay the amount to the individual in a single lump sum, at such time and in such manner as the Secretary considers appropriate.

(2) This section is subject to Subdivision CA of this Division, Part 4, Division 3 of Part 8B and sections 225 and 226.

15 Section 219TA (after paragraph (c) of the definition of relevant benefit )

  Insert:

  (caa) family tax benefit under section 58AA of the Family Assistance Act; or

Part 2—Stillborn baby payment

A New Tax System (Family Assistance) Act 1999

16 Subsection 3(1) (definition of baby bonus )

  Repeal the definition.

17 Subsection 3(1) (paragraph (b) of the definition of family assistance )

  Repeal the paragraph, substitute:

  (b) stillborn baby payment; or

18 Subsection 3(1) (paragraph (c) of the definition of FTB child )

  Repeal the paragraph, substitute:

  (c) in relation to stillborn baby payment—has the meaning given in Subdivision A of Division 1 of Part 3; and

19 Subsection 3(1) (definition of primary carer )

  Repeal the definition.

20 Subsection 3(1)

  Insert:

  stillborn baby payment means the payment for which an individual is eligible under Division 2 of Part 3.

21 Division 2 of Part 3

  Repeal the Division, substitute:

Division 2—Eligibility for stillborn baby payment

Subdivision A—Eligibility of individuals for stillborn baby payment in normal circumstances

36 When an individual is eligible for stillborn baby payment in normal circumstances

(1) Subject to this section, an individual is eligible for a stillborn baby payment in respect of a child if:

  (a) the child is a stillborn child; and

  (b) had the child been born alive:

     (i) the child would have been an FTB child of the individual at birth; and

     (ii) the individual, or the individual's partner, would have been the primary carer of the child at birth; and

  (c) either:

     (i) the individual would have been eligible for family tax benefit in respect of the child, at any time within the period of 26 weeks starting on the day of the child's delivery, assuming the child had not been a stillborn child; or

     (ii) the individual would have been so eligible on the assumption described in subparagraph (i) except that the individual's rate of family tax benefit, worked out under Division 1 of Part 4, is nil; and

  (d) the claim for payment of stillborn baby payment contains an estimate of the sum of:

     (i) the individual's adjusted taxable income; and

     (ii) if the individual is a member of a couple on the day the claim is made—the adjusted taxable income of the individual's partner;

     for the period of 6 months beginning on the day of the child's delivery; and

  (e) that estimate is less than or equal to $60,000 and the Secretary considers that estimate to be reasonable.

(2) Paragraphs (1)(c) and (e) do not apply if on any day during the period of 52 weeks beginning on the day of the child's delivery:

  (a) either:

     (i) a determination under section 16 or 17 of the Family Assistance Administration Act is in force in respect of the individual; or

     (ii) a determination under section 18 of the Family Assistance Administration Act is in force in respect of the individual because the Secretary is satisfied that the individual is eligible for family tax benefit under section 32 of this Act; and

  (b) the individual's rate of family tax benefit, worked out under Division 1 of Part 4 but disregarding reductions (if any) under clause 5 or 25A of Schedule 1 and disregarding section 58A and subclauses 38AA(3) and 38AF(3) of Schedule 1, consisted of or included a Part A rate greater than nil.

Estimate of adjusted taxable income

(3) For the purposes of paragraph (1)(d):

  (a) a reference in Schedule 3 to an income year is taken to be a reference to the 6-month period mentioned in that paragraph; and

  (b) disregard subclause 2(2) and clauses 3 and 3A of that Schedule.

Exception

(4) This section does not apply, and is taken never to have applied, in relation to the individual and the child if parental leave pay is payable to the individual, or the individual's partner, for the child.

37 Only one individual eligible for stillborn baby payment in respect of a child

     If the Secretary determines that an individual who is a member of a couple is eligible for a stillborn baby payment under subsection 36(1) in respect of a child, the Secretary must not determine that the partner of the individual is eligible for a stillborn baby payment in respect of that child.

Subdivision B—Eligibility of individuals for stillborn baby payment where death occurs

38 What happens if an individual eligible for stillborn baby payment dies

     If:

  (a) an individual is eligible for a stillborn baby payment (the subject payment) in respect of a child; and

  (b) the individual dies; and

  (c) before the individual died, the subject payment had not been paid to the individual (whether or not a claim had been made under Part 3 of the Family Assistance Administration Act); and

  (d) another individual makes a claim under that Part for payment of a stillborn baby payment because of the death of the first-mentioned individual, stating that he or she wishes to become eligible for the subject payment; and

  (e) the claim is made:

     (i) within 52 weeks after the death; or

     (ii) within a further period allowed by the Secretary in special circumstances; and

  (f) the Secretary considers that the other individual ought to be eligible for the subject payment;

the other individual is eligible for the subject payment. No-one else is, or can become, eligible for or entitled to be paid that payment.

22 Division 2 of Part 4

  Repeal the Division, substitute:

Division 2—Stillborn baby payment

66 Amount of stillborn baby payment

General rule

(1) Subject to this section, the amount of a stillborn baby payment for an individual in respect of a child is as follows:

  (a) if the child is the first stillborn child of the woman who gave birth to the child—the amount worked out using the formula:

     Higher newborn supplement amount + Newborn upfront amount

(b) otherwise—the amount worked out using the formula:

     Lower newborn supplement amount + Newborn upfront amount

Multiple children case

(2) If 2 or more children are born during the same multiple birth and there is at least one stillborn child, the amount of stillborn baby payment for an individual in respect of each stillborn child born during that birth is the amount worked out using the formula:

     Higher newborn supplement amount + Newborn upfront amount

Definitions

(3) In this section:

  higher newborn supplement amount means the dollar amount mentioned in the formula under paragraph 35B(1)(a) of Schedule 1 (including that amount as indexed).

  lower newborn supplement amount means the dollar amount mentioned in the formula under paragraph 35B(1)(d) of Schedule 1 (including that amount as indexed).

  newborn upfront amount means the amount mentioned in subsection 58AA(1) (including that amount as indexed).

23 Subsection 85(1)

  Omit "(1)".

24 Subsection 85(2)

  Repeal the subsection.

25 Clause 2 of Schedule 4 (table items 17AD and 17AE)

Repeal the items, substitute:

26 Subclause 3(1) of Schedule 4 (table items 17AD and 17AE)

Repeal the items, substitute:

27 Before subclause 3(5) of Schedule 4

  Insert:

First indexation of stillborn baby payment income limit

  (4A) The first indexation under subclause (1) of the stillborn baby payment income limit is to take place on 1 July 2017.

A New Tax System (Family Assistance) (Administration) Act 1999

28 Subsection 3(1) (definition of early claim day )

  Repeal the definition, substitute:

  early claim day, in relation to a claim for payment of family tax benefit by instalment, means the day occurring 97 days before the day that, on the day the claim is made, is the expected day on which the child to whom the claim relates will become an FTB child of the claimant. It does not matter whether the child becomes such an FTB child on the expected day.

29 Subsection 3(1) (paragraph (c) of the definition of TFN claim person )

  Omit "baby bonus", substitute "a stillborn baby payment".

30 Subsection 3(1) (paragraph (c) of the definition of TFN substitution person )

  Omit "baby bonus", substitute "a stillborn baby payment".

31 Division 3 of Part 3 (heading)

  Repeal the heading, substitute:

Division 3—Stillborn baby payment

32 Sections 36 to 38

  Repeal the sections, substitute:

36 Need for a claim

     The only way that a person can become entitled to be paid a stillborn baby payment is to make a claim in accordance with this Division.

37 Who can claim

     The only persons who can make a claim in accordance with this Division are individuals.

38 How to claim

(1) An individual (the claimant) may make a claim for payment of:

  (a) a stillborn baby payment in normal circumstances; or

  (b) a stillborn baby payment because of the death of another individual.

(2) A claim is not effective unless:

  (a) the claim:

     (i) is made in a form and manner; and

     (ii) contains any information; and

     (iii) is accompanied by any documents;

     required by the Secretary; and

  (b) in the case of a claim for a stillborn baby payment in normal circumstances—the claim contains an estimate of the sum of:

     (i) the individual's adjusted taxable income; and

     (ii) if the individual is a member of a couple on the day the claim is made—the adjusted taxable income of the individual's partner;

     for the 6-month period mentioned in paragraph 36(1)(d) of the Family Assistance Act; and

  (c) in the case of a claim for a stillborn baby payment in normal circumstances—the tax file number requirement in section 38A has been satisfied in relation to the claim; and

  (d) in the case of a claim for a stillborn baby payment because of the death of another individual—the tax file number requirement in section 38B has been satisfied in relation to the claim.

Estimate of adjusted taxable income

(3) For the purposes of paragraph (2)(b):

  (a) a reference in Schedule 3 to the Family Assistance Act to an income year is taken to be a reference to the 6-month period referred to in that paragraph; and

  (b) disregard subclause 2(2) and clauses 3 and 3A of that Schedule.

33 Section 38A (heading)

  Omit "baby bonus", substitute "stillborn baby payment".

34 Section 38B (heading)

  Omit "baby bonus", substitute "stillborn baby payment".

35 Section 39

  Repeal the section, substitute:

39 Restrictions on claiming

" Normal circumstances " entitlement must not already have been determined, or be awaiting determination, on a previous claim

(1) A claim for payment of a stillborn baby payment in normal circumstances is not effective if the claimant has previously made such a claim based on the same circumstances (whether or not the claim has yet been determined).

Timing of " normal circumstances " stillborn baby payment claim

(2) Subject to subsections (3) and (4), a claim for payment of a stillborn baby payment in normal circumstances is not effective unless it is made before the end of the period of 52 weeks beginning on the day of the birth of the stillborn child.

(3) If the Secretary is satisfied that the claimant was unable to make a claim for payment of a stillborn baby p

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