Michael Ferguson (Bass, Liberal Party) Share this | Link to this | Hansard source

My question is also addressed to the Treasurer. Would the Treasurer inform the House of the assistance which the government delivers to low-income families? I am particularly interested in those in my electorate who are renting. Is he aware of any alternative approaches?

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the honourable member for Bass for his question. I can inform him that a single-income family with children is eligible for the maximum rate of family tax benefit where they have an income less than $41,318. That means that a family with two children and an annual income under $41,000 is eligible for a family tax benefit part A payment of $290 per fortnight. That is $145 a child. They are entitled to a family tax benefit part B payment of $212 a fortnight. That makes their family assistance under those two benefits around $500 a fortnight. In addition, that family is entitled to rent assistance of up to $122 a fortnight. Because the government was re-elected, they are still eligible for the family tax benefit, a supplement, the $600 payment, which entitles families to $667 per child: an FTB A payment of $290 per fortnight, an FTB B payment of $212 a fortnight, rental assistance of $122 a fortnight—a family supplement of $667.95 per child.

Since 1996-97, the real disposable income of a single-income family on average weekly ordinary time earnings has risen 34 per cent. Let me say that again: the real disposable income—that is, after CPI, after tax—of a single income family on average weekly ordinary time earnings, with two children, has risen by 34.6 per cent. That is real money into their bank accounts from which they can pay their bills. In fact, a single income family with two children has to earn more than $50,000 a year to pay net tax—that is, the amount that they are repaid in family tax benefits outweighs their tax liability so that a family on $50,000 with two children does not pay tax in net terms.

For a single income family with two children, the rent assistance—which was $86 back in 1996—is now $122 per fortnight, which is about a 50 per cent increase. This government believe in improving benefits for families, effectively cutting them out of the tax system, increasing rent allowances and delivering better family tax benefits. The maximum family tax benefit today is $4,460 per annum—an increase from $2,420 back in 1996. The government have been about directly assisting families through the family tax benefit system. We have done that by recognising the additional costs that come from rearing children. It has improved the position of families as a result, and, of course, economic reforms have given those families the best opportunity in 33 years for a member of the family to get into the workforce and to benefit from that. These are improvements for families—all would be put at risk by a Labor government.