Family Assistance Legislation Amendment (Participation Requirement) Act 2009

Administered by Department of Social Services

Legislation au C2009A00129 In force Act

Legislation content

Family Assistance Legislation Amendment (Participation Requirement) Act 2009

Act No. 129 of 2009 as amended

This compilation was prepared on 5 May 2010
taking into account amendments up to Act No. 45 of 2010

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,
AttorneyGeneral’s Department, Canberra

 

 

Contents

1 Short title [see Note 1]

2 Commencement

3 Schedule(s)

Schedule 1—FTB activity test

Part 1—Amendments

A New Tax System (Family Assistance) Act 1999

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

Part 2—Application and transitional

Notes 

 

An Act to amend the law relating to family assistance, and for related purposes

1  Short title [see Note 1]

  This Act may be cited as the Family Assistance Legislation Amendment (Participation Requirement) Act 2009.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

10 December 2009

2.  Schedule 1

1 January 2010.

1 January 2010

Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

 (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1FTB activity test

Part 1—Amendments

A New Tax System (Family Assistance) Act 1999

1  Subsection 3(1)

Insert:

approved course of education or study has the meaning given by subsection 541B(5) of the Social Security Act 1991 for the purposes of paragraph (1)(c) of that section.

2  Subsection 3(1)

Insert:

exempt from the FTB activity test: an individual is exempt from the FTB activity test in the circumstances mentioned in subsection 17B(2).

3  Subsection 3(1)

Insert:

satisfies the FTB activity test: an individual satisfies the FTB activity test in the circumstances mentioned in subsection 17B(1).

4  After section 17A

Insert:

17B  FTB activity test

 (1) An individual satisfies the FTB activity test if:

 (a) the individual has completed the final year of secondary school, or an equivalent level of education; or

 (b) the individual is undertaking fulltime study in an approved course of education or study that would, in the Secretary’s opinion, assist or allow the individual to complete the final year of secondary school or an equivalent level of education.

 (2) An individual is exempt from the FTB activity test if:

 (a) there is no locally accessible approved course of education or study (including any such course available by distance education); or

 (b) where there is such a course:

 (i) there is no place available on the course for the individual; or

 (ii) the individual is not qualified to undertake the course; or

 (iii) the individual lacks capacity to undertake the course because the individual has a physical, psychiatric or intellectual disability or a learning disability such as attention deficit disorder; or

 (c) in the Secretary’s opinion, special circumstances exist that make it unreasonable to require the individual to undertake an approved course of education or study.

 (3) If the Secretary determines that it is appropriate to do so having regard to an individual’s circumstances, the Secretary may determine that the normal amount of fulltime study for the individual in respect of a course is to be a number of hours per week specified in the determination, averaged over the duration of the period for which the individual is enrolled in the course.

 (4) The Secretary may, by legislative instrument, set guidelines for the exercise of the Secretary’s discretion under either or both of the following:

 (a) paragraph (1)(b);

 (b) paragraph (2)(c).

 (5) In forming an opinion for the purposes of paragraph (1)(b) or (2)(c), the Secretary must have regard to the guidelines.

5  Subsections 22(2) to (5)

Repeal the subsections, substitute:

Individual aged under 16

 (2) An individual is an FTB child of the adult if:

 (a) the individual is aged under 16; and

 (b) the individual is in the adult’s care; and

 (c) the individual is an Australian resident, is a special category visa holder residing in Australia or is living with the adult; and

 (d) the circumstances surrounding legal responsibility for the care of the individual are those mentioned in paragraph (5)(a), (b) or (c).

Individual aged 1617

 (3) An individual is an FTB child of the adult if:

 (a) the individual has turned 16 but is aged under 18; and

 (b) the individual is in the adult’s care; and

 (c) the individual is an Australian resident, is a special category visa holder residing in Australia or is living with the adult; and

 (d) the circumstances surrounding legal responsibility for the care of the individual are those mentioned in paragraph (5)(a), (b) or (c); and

 (e) the individual satisfies or is exempt from the FTB activity test.

Individual aged 1820

 (4) An individual is an FTB child of the adult if:

 (a) the individual has turned 18 but is aged under 21; and

 (b) the individual is in the adult’s care; and

 (c) the individual is an Australian resident, is a special category visa holder residing in Australia or is living with the adult; and

 (d) the individual satisfies or is exempt from the FTB activity test.

Legal responsibility for the individual

 (5) The circumstances surrounding legal responsibility for the care of the individual are:

 (a) the adult is legally responsible (whether alone or jointly with someone else) for the daytoday care, welfare and development of the individual; or

 (b) under a family law order, registered parenting plan or parenting plan in force in relation to the individual, the adult is someone with whom the individual is supposed to live or spend time; or

 (c) the individual is not in the care of anyone with the legal responsibility for the daytoday care, welfare and development of the individual.

6  Paragraph 22(6A)(a)

Omit “, (5)”.

7  After paragraph 23(1)(a)

Insert:

 (aa) the circumstances surrounding legal responsibility for the care of the individual are those mentioned in paragraph 22(5)(a) or (b); and

8  Subsection 23(2)

Repeal the subsection, substitute:

When the child remains an FTB child of the adult

 (2) The child is an FTB child of the adult for that part of the qualifying period (see subsection (5)) for which:

 (a) the child would have been an FTB child of the adult under subsection 22(2) or (3) if the child had not ceased to be in the adult’s care; and

 (b) the circumstances surrounding legal responsibility for the care of the child are those mentioned in paragraph 22(5)(a) or (b).

9  Subsection 23(3)

Omit “paragraph (1)(a) and subsection (2)”, substitute “paragraphs (1)(a) and (2)(a)”.

10  Paragraph 34(1)(a)

Repeal the paragraph, substitute:

 (a) the individual:

 (i) is aged under 16; or

 (ii) has turned 16 but is aged under 21 and satisfies or is exempt from the FTB activity test; or

 (iii) has turned 21 but is aged under 25 and is undertaking fulltime study; and

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

11  After subsection 29(2A)

Insert:

 (2B) Without limiting subsection (2), if the Secretary considers that the information or document is relevant to whether an individual satisfies or is exempt from the FTB activity test, the Secretary may vary the determination so as to disregard the individual for the purposes of working out whether the claimant is entitled to be paid family tax benefit, and if so the rate at which it is to be paid:

 (a) for any day on which the determination was or will be in force after the end of the last instalment period before the variation takes place; or

 (b) for any later day on which the determination was or will be in force specified by the Secretary in the variation.

12  Subsection 29(3)

Omit “subsection (2) or (2A)” (wherever occurring), substitute “subsection (2), (2A) or (2B)”.

Part 2Application and transitional

13  Application

(1) If a claim for the payment of family tax benefit by instalment is made on or after 1 January 2010, the amendments made by Part 1 of this Schedule apply for the purposes of working out the claimant’s entitlement to the payment of family tax benefit by instalment.

(2) If a claim for the payment of family tax benefit by instalment is made before 1 January 2010, the amendments made by Part 1 of this Schedule apply for the purposes of working out the claimant’s entitlement to the payment of family tax benefit by instalment for a day that falls on or after 1 July 2010.

(3) The amendments made by Part 1 of this Schedule apply to the payment of family tax benefit for a past period to the extent that the period falls on or after 1 January 2010.

14  Obtaining information during the transition period

(1) If the Secretary considers that information or a document that is in a person’s custody or under a person’s control may be relevant to whether an individual will satisfy or be exempt from the FTB activity test on 1 July 2010, the Secretary may require the person to give the information or produce the document during the transition period to a specified agency.

(2) The A New Tax System (Family Assistance) Act 1999 and the A New Tax System (Family Assistance) (Administration) Act 1999 apply as if this item were a requirement under Division 1 of Part 6 of the A New Tax System (Family Assistance) (Administration) Act 1999.

(3) The transition period is the period beginning at the start of 1 January 2010 and ending at the end of 30 June 2010.

Notes to the Family Assistance Legislation Amendment (Participation Requirement) Act 2009

Note 1

The Family Assistance Legislation Amendment (Participation Requirement) Act 2009 as shown in this compilation comprises Act No. 129, 2009 amended as indicated in the Tables below.

Table of Acts

Act

Number
and year

Date
of Assent

Date of commencement

Application, saving or transitional provisions

Family Assistance Legislation Amendment (Participation Requirement) Act 2009

129, 2009

10 Dec 2009

See s. 2(1)

 

Social Security and Family Assistance Legislation Amendment (Weekly Payments) Act 2010

45, 2010

14 Apr 2010

Schedule 3: (a)

(a) Subsection 2(1) (item 3) of the Social Security and Family Assistance Legislation Amendment (Weekly Payments) Act 2010 provides as follows:

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

3.  Schedule 3

Immediately after the commencement of Schedule 1 to the Family Assistance Legislation Amendment (Participation Requirement) Act 2009.

1 January 2010

Table of Amendments

ad. = added or inserted     am. = amended     rep. = repealed     rs. = repealed and substituted

Provision affected

How affected

Schedule 1

 

Items 13, 14..............

am. No. 45, 2010

 

Overview

The Family Assistance Legislation Amendment (Participation Requirement) Act 2009 was enacted to address the need for greater participation in education and training among individuals receiving family assistance payments. This Act was passed by the Australian Parliament and received Royal Assent on 10 December 2009. The primary policy objective of the Act is to ensure that individuals eligible for family assistance contribute to their personal development through education or training, thereby promoting self-sufficiency and reducing dependency on government support. The Act amends the A New Tax System (Family Assistance) Act 1999 and the A New Tax System (Family Assistance) (Administration) Act 1999 to introduce new conditions under which individuals must participate in education or training to be eligible for family assistance payments. These amendments include the introduction of the Family Tax Benefit (FTB) activity test, which sets out the circumstances under which individuals must be engaged in approved courses of education or study to satisfy the participation requirement. The Act also modifies the definition of an FTB child to include individuals who are in the care of an adult and meet specific criteria, including satisfying or being exempt from the FTB activity test.

Scope and Application

The Family Assistance Legislation Amendment (Participation Requirement) Act 2009 amends the A New Tax System (Family Assistance) Act 1999 and the A New Tax System (Family Assistance) (Administration) Act 1999 to introduce a Family Tax Benefit (FTB) activity test. This Act applies to individuals who are either receiving or seeking family tax benefits under the specified Acts, focusing on those aged between 16 and 20. The geographic reach of the Act is national, as it pertains to the Commonwealth-administered family assistance scheme. The Act imposes a requirement that individuals in the specified age range must either be undertaking full-time study or be exempt from this requirement under certain conditions to be eligible for FTB. The amendments introduced by the Act apply to claims made on or after 1 January 2010, with transitional provisions allowing for the Secretary to obtain relevant information during a specified transition period ending 30 June 2010. The Act does not explicitly provide for exclusions or exemptions beyond those specified within its provisions, and its application is further extended or restricted through subordinate instruments as necessary.

Key Provisions

The Family Assistance Legislation Amendment (Participation Requirement) Act 2009 primarily amends the A New Tax System (Family Assistance) Act 1999 and the A New Tax System (Family Assistance) (Administration) Act 1999. Key changes introduced by this Act include the addition of a Family Tax Benefit (FTB) activity test (section 17B) and revisions to the definition and criteria of an FTB child (sections 22 and 23). Section 17B introduces criteria for satisfying or being exempt from the FTB activity test, which applies to individuals aged between 16 and 20. Individuals who have completed the final year of secondary school or are undertaking full-time study in an approved course of education or study that would help them complete the final year of secondary school or an equivalent level of education are considered to satisfy the FTB activity test. Conversely, individuals are exempt from the FTB activity test if no locally accessible approved course of education or study is available or if they are unable to undertake such a course due to various specified reasons. The Act also imposes obligations on the Secretary, who is responsible for determining whether an individual satisfies or is exempt from the FTB activity test. The Secretary must consider specific guidelines when making such determinations and may vary determinations if relevant information or documents come to light (sections 17B(4) and 29(2B)). Additionally, the Act outlines criteria for individuals to be considered FTB children, including age, residency, and the circumstances of legal responsibility for their care (sections 22 and 23). The amendments apply to claims for family tax benefit made on or after 1 January 2010 (Schedule 1, item 13). Breaches of the provisions in the Act may lead to civil or criminal consequences. For instance, providing false or misleading information to the Secretary for the purposes of determining an individual's eligibility for family tax benefit may result in penalties under the relevant Acts. The maximum penalties for such offences can include fines and imprisonment, depending on the severity and intent behind the breach. The Act also provides mechanisms for the Secretary to obtain necessary information during a transition period, which runs from 1 January 2010 to 30 June 2010 (Schedule 1, item 14).

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Social Security Law
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