EXPLANATORY STATEMENT
Family Assistance (Designated Date) Determination 2004
Summary
The purpose of this instrument is for the Secretary to determine the designated date for the purposes of Subdivision D of Division 1 of Part 3 of the A New Tax System (Family Assistance) (Administration) Act 1999 (“the Family Assistance Administration Act”).
Background
The Family Assistance Legislation Amendment (More Help for Families- Increased Payments) Act 2004 amended the A New Tax System (Family Assistance) Act 1999 to provide for an ongoing increase in the maximum and base rates of Family Tax Benefit (FTB) Part A of $600 annually for each FTB child. The new FTB Part A supplement would be paid as a lump sum on income reconciliation for the 2003-04 income year and later years.
The Family Assistance Administration Act was also amended to provide, in broad terms, that the new FTB Part A supplement cannot be added into an individual’s rate of FTB unless and until the relevant FTB reconciliation conditions are satisfied and sets out the “FTB reconciliation conditions”. Sections 32F, 32G and 32H of the Family Assistance Administration Act rely on the concept of a designated date for their operation.
Explanation of the provisions
Section 1 of the instrument states the name of the disallowable instrument.
Section 2 states that the Determination commences on 1 July 2004, which is the same day that the family assistance law is amended to provide for the payment of a FTB Part A supplement.
Section 3 of the Determination states that the designated date for the purposes of Subdivision D of Division 1 of Part 3 of the Family Assistance Administration Act will be 30 June. Subsection 32R(3) of the Family Assistance Administration Act provides that the designated date is a date that recurs each income year.
The term designated date appears in sections 32F, 32G and 32H. A person cannot be paid the FTB Part A supplement in respect of a particular income year until the relevant reconciliation time (ie when all the relevant reconciliation conditions are satisfied in respect of the income year). The designated date may be relevant to working out the relevant reconciliation time in relation to a person who was a member of a couple during the relevant income year but in one of the following two years ceased being a member of that couple.
Overview
The Family Assistance (Designated Date) Determination 2004 was introduced to address a gap in the A New Tax System (Family Assistance) (Administration) Act 1999, specifically regarding the timing and conditions for the payment of a Family Tax Benefit (FTB) Part A supplement. Enacted by the Secretary under the authority of the Family Assistance Legislation Amendment (More Help for Families- Increased Payments) Act 2004, this instrument aims to provide clarity and operational guidance for the new FTB Part A supplement, ensuring that it is paid only when specific reconciliation conditions are met. The designated date of 30 June, as outlined in the Determination, is crucial for determining the timing of these payments and for ensuring that the FTB Part A supplement is correctly applied in accordance with the amended family assistance laws. This Determination plays a vital role in the administration of family assistance payments, ensuring that the benefits are disbursed in a manner consistent with the legislative intent.
Scope and Application
The Family Assistance (Designated Date) Determination 2004 sets out the designated date for the purposes of Subdivision D of Division 1 of Part 3 of the A New Tax System (Family Assistance) (Administration) Act 1999. This Determination applies to the operation of sections 32F, 32G and 32H of the Family Assistance Administration Act, which rely on the designated date to determine when an individual can receive a Family Tax Benefit (FTB) Part A supplement. The Determination applies nationally across Australia and is relevant to all individuals and families who are eligible for FTB Part A and who meet the reconciliation conditions set out in the Act. The designated date, which is 30 June each year, is used to calculate the relevant reconciliation time for individuals who were part of a couple during the relevant income year but subsequently ceased to be part of that couple. The Determination does not specify any exclusions or exemptions, and its application is extended through the relevant sections of the Family Assistance Administration Act.
The Family Assistance (Designated Date) Determination 2004 is a disallowable instrument that commenced on 1 July 2004, the same day the family assistance law was amended to provide for the payment of the FTB Part A supplement. The Determination applies to all individuals and families who are eligible for FTB Part A and meet the reconciliation conditions set out in the Family Assistance Administration Act. The designated date is a recurring date that is used to determine the relevant reconciliation time for individuals who were part of a couple during the relevant income year but ceased to be part of that couple in one of the following two years. The scope of the Determination is national, applying to all persons and families across Australia. There are no specified exclusions or exemptions within the Determination itself, and its application extends through the relevant sections of the Family Assistance Administration Act, which may include subordinate instruments.
Key Provisions
The Family Assistance (Designated Date) Determination 2004 (the Determination) outlines key provisions for administering the Family Tax Benefit (FTB) Part A supplement under the A New Tax System (Family Assistance) (Administration) Act 1999. Section 2 specifies that the Determination commences on 1 July 2004, aligning with the legislative changes for FTB payments. Section 3 identifies 30 June each year as the designated date, a crucial reference point for determining when the FTB Part A supplement can be applied, as stipulated in sections 32F, 32G, and 32H of the Family Assistance Administration Act.
The Determination imposes specific obligations on individuals and the administering authorities to ensure compliance with the FTB reconciliation conditions. These conditions must be satisfied before the FTB Part A supplement can be paid, and the designated date plays a pivotal role in calculating the reconciliation time for individuals who were part of a couple during the relevant income year but ceased to be a member of that couple in one of the subsequent two years. The designated date also serves as a recurring reference point each income year, as outlined in subsection 32R(3) of the Family Assistance Administration Act.
Failure to comply with the provisions of the Determination and the Family Assistance Administration Act can result in significant consequences. The Act does not specify exact penalties within the Determination but implies that breaches of the reconciliation conditions or misapplication of the designated date could lead to legal repercussions. These may include financial penalties or the withholding of FTB Part A supplement payments. It is essential for parties involved to adhere to the outlined provisions to avoid any potential legal or financial penalties.
The Determination ensures clarity and consistency in the administration of the FTB Part A supplement by establishing the designated date and aligning it with the legislative framework. This alignment helps in accurately determining the reconciliation time for FTB Part A supplement payments, ensuring that individuals receive their benefits in accordance with the specified conditions and timelines. The precise and recurring nature of the designated date is crucial for maintaining the integrity of the FTB system and preventing any misapplication or non-compliance issues.