Concetta Fierravanti-Wells (NSW, Liberal Party, Assistant Minister for Multicultural Affairs) Share this | Hansard source

The Social Services Legislation Amendment (Family Payments Structural Reform and Participation Measures) Bill 2015 will introduce a package of reforms that will assist in supporting families while encouraging parents' participation in the workforce.

Following amendments made in the House, the changes in the bill focus on structural reform of the welfare system by targeting family tax benefit part B payments, which are designed to support families on single incomes, to better balance the work and caring responsibilities of families with the least capacity to increase workforce participation. The bill will remove eligibility to FTB part B for couple families other than grandparents with a youngest child aged 13 or over. This limitation is consistent with this government's broader participation agenda and supports the policy imperative that families be encouraged to enter or re-enter the workforce when their children begin secondary school and become more independent.

As noted, the remainder of the savings proposals will be reintroduced as part of a new bill. After constructive consultations with the Senate crossbench and senators, the government will ensure that single parents aged over 60 years and grandparent and great-grandparent carers with a youngest child aged 13 to 18 years will be eligible to receive FTB B at the standard rate. However, single-parent families and grandparents with a youngest child aged 13 to 18 years will continue to be eligible for FTB part B. This acknowledges the role of grandparent carers, who are less likely to be in the workforce, and helps with the cost of raising their grandchildren. The bill similarly recognises the difficulties encountered by single parents in transitioning into work and so provides additional, appropriate assistance while they prepare to re-enter the workforce.

The level of financial support provided by FTB part B is higher for families with the youngest child aged four and under, in recognition of the higher need for parental provision of direct care of children, and reduces when the youngest child turns five, moves into compulsory education and gives primary carers greater capacity to move into the workforce or increase their workforce participation. Where a youngest child has reached the age of 13, the government considers it appropriate to expect primary carers to engage in the workforce or increase their workforce participation.

While this measure will reduce the assistance to couple families once their youngest child turns 13, they will retain eligibility for income support or social security payments for themselves and assistance for dependant children through FTB part A or youth income support payments.

In summary, this package supports better targeting of FTB part B to families with one main income that have more limited capacity to enter the workforce or increase workforce participation. The reform demonstrates the government's commitment to families by supporting family choice to spend more time with their children when they are very young if they wish to do so and recognising that some of the most vulnerable families, such as grandparent carers and single-parent families, have limited capacity to increase workforce participation as their children age. They should receive support during the child's adolescent years. At the same time, these reforms will improve the sustainability of the family payments system by ensuring that we can achieve three important goals: (1) continue to assist families in raising their children over the long term, (2) fund the childcare reforms designed to enable and encourage greater workforce participation and (3) better target support to those who need it move. The bill also makes it clear that great-grandparent couple families as well as grandparent couple families will not be affected by the initiative introduced in this bill.

I conclude my comments by noting comments made by Minister Porter today in a media release. He states:

When we first announced the FTB reforms, we said we were willing to listen to sensible observations. I thank the senators for their engagement and we will continue to talk to them to work towards securing the passage of this important bill.