Linda Reynolds (WA, Liberal Party, Minister for Government Services) Share this | Hansard source

To add to my answer to Senator Faruqi's questions, I can also confirm that, since the government announced this initiative, I have been working with Minister Tudge, Services Australia and his department. We have worked very closely on the time line, but it does require very significant system changes to deliver. We have always been very cautious but very deliberate in our planning and our time frame. As Minister Ruston said, if we can bring it forward we will, but, again, it's more important that we get the system right to be able to deliver it for Australian families.

I now table a supplementary explanatory memorandum and move amendments (1) and (2) and request for an amendment (3) on government sheet PV119:

(1) Schedule 2, item 7, page 7 (lines 11 to 14), omit subclause 3A(2) of Schedule 2, substitute:

What is the applicable percentage?

(2) Subject to subclauses (4) and (5) of this clause, the individual's applicable percentage for the session of care is determined by the table in subclause 3(1), and by subclause 3(3), as modified by subclause (3) of this clause.

(2) Schedule 2, item 7, page 7 (lines 23 and 24), omit paragraph 3A(3) (d) of Schedule 2.

(3) Schedule 2, item 7, page 7 (after line 26), at the end of clause 3A of Schedule 2, add:

(4) Subclause (5) applies, and subclause (2) does not apply, if the individual's adjusted taxable income for the income year in which the CCS fortnight starts is above the lower income threshold and below the second income threshold.

(5) The individual's applicable percentage for the session of care is the lesser of 95% and the percentage worked out by:

(a) starting with the applicable percentage (the default percentage) that would apply to the individual for the session of care under item 2 of the table in subclause 3(1) and under subclause 3(2); and

(b) adding 30 percentage points to the default percentage.

Example: If the default percentage is 60%, the individual's applicable percentage for the session of care is 90%. If the default percentage is 75%, the individual's applicable percentage for the session of care is 95%.

Question agreed to.