Social Services Legislation Amendment (Family Payments Structural Reform and Participation Measures) Act 2015
No. 173, 2015
An Act to amend the law relating to family assistance, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedules
Schedule 2—Family tax benefit Part B rate
A New Tax System (Family Assistance) Act 1999
Social Services Legislation Amendment (Family Payments Structural Reform and Participation Measures) Act 2015
No. 173, 2015
An Act to amend the law relating to family assistance, and for related purposes
[Assented to 11 December 2015]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Social Services Legislation Amendment (Family Payments Structural Reform and Participation Measures) Act 2015.
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 |
Provisions | 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. | 11 December 2015 |
3. Schedule 2 | 1 July 2016. | 1 July 2016 |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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 2—Family tax benefit Part B rate
A New Tax System (Family Assistance) Act 1999
4 At the end of Subdivision AA of Division 1 of Part 4 of Schedule 1
Add:
28D Member of a couple whose youngest FTB child has turned 13
(1) Despite Subdivisions A and B, an individual’s Part B rate is nil if:
(a) the individual is a member of a couple; and
(b) the youngest FTB child of the individual has turned 13 years of age.
(2) Subclause (1) does not apply if the individual is a grandparent or great‑grandparent of that FTB child.
(3) In determining, for the purposes of this clause, whether an individual is a grandparent or great‑grandparent of another person, treat the following relationships as if they were biological child‑parent relationships:
(a) the relationship between an adopted child and his or her adoptive parent;
(b) the relationship between a step‑child and his or her step‑parent;
(c) the relationship between a relationship child and his or her relationship parent.
(4) In this clause:
adoptive parent, of a person (the child), means the person who adopted the child under a law of any place (whether in Australia or not) relating to the adoption of children.
step‑parent, of a person (the child), means the person who:
(a) is the current or former partner of the biological parent, adoptive parent or relationship parent of the child; and
(b) is not the biological parent, adoptive parent or relationship parent of the child.
10 Application and transitional provisions
(1) The amendments made by this Schedule apply in relation to working out the rate of family tax benefit for days on or after the commencement of this Schedule.
[Minister’s second reading speech made in—
House of Representatives on 21 October 2015
Senate on 30 November 2015]
Overview
The Social Services Legislation Amendment (Family Payments Structural Reform and Participation Measures) Act 2015 was enacted by the Parliament of Australia to amend existing laws concerning family assistance. The Act aims to introduce structural reforms and participation measures to the family payment system. It targets the adjustment of family tax benefits, particularly focusing on the cessation of certain payments when children reach a specific age, thereby encouraging workforce participation among parents. The policy objective behind the Act is to streamline and modernise the family assistance system to ensure it supports families in a more effective and efficient manner, reflecting current social and economic conditions.
The Act introduces significant changes, including the cessation of Family Tax Benefit Part B for members of a couple whose youngest child has turned 13, unless they are the child's grandparent or great-grandparent. This change is intended to encourage parents to engage more fully in the workforce while still providing support for younger children. The Act commenced on 11 December 2015, with specific amendments to the Family Tax Benefit Part B rate taking effect from 1 July 2016.
Scope and Application
The Social Services Legislation Amendment (Family Payments Structural Reform and Participation Measures) Act 2015 is a Commonwealth Act that amends the A New Tax System (Family Assistance) Act 1999, primarily to modify the rates of family tax benefits. This Act applies to individuals who are members of a couple and have a youngest child who has reached the age of 13. The Act sets the individual's Part B rate to nil under these conditions, unless the individual is a grandparent or great-grandparent of that child. This amendment commenced on 1 July 2016 and impacts the calculation of family tax benefits for days on or after this date. The Act does not apply to other relationships or individuals not meeting the specified criteria and is limited to the Commonwealth jurisdiction without any exclusions or thresholds stated within the Act itself. Subordinate instruments may further define or extend the application of these provisions.
Key Provisions
The Social Services Legislation Amendment (Family Payments Structural Reform and Participation Measures) Act 2015 (sections 1-3 and schedule 2) introduces significant changes to family assistance payments under the A New Tax System (Family Assistance) Act 1999. The Act provides that an individual's Family Tax Benefit Part B rate will be nil if they are a member of a couple and their youngest child has turned 13 years of age (section 28D(1)). However, this does not apply if the individual is a grandparent or great-grandparent of the child (section 28D(2)). For the purposes of this clause, certain adoptive and step-parent relationships are treated as biological child-parent relationships (section 28D(3)). These amendments apply to determining family tax benefit rates for days on or after the commencement of the schedule, which is 1 July 2016 (section 10(1)).
The Act imposes obligations on eligible individuals to ensure they meet the criteria for receiving family tax benefit payments. Individuals must accurately report their family circumstances, including whether they are a member of a couple and the ages of their children, to the Department of Human Services. They must also provide evidence of any changes in their circumstances that may affect their eligibility for payments. Failure to comply with these obligations may result in reduced or denied payments.
Breach of the provisions under this Act may lead to civil and criminal consequences. For example, providing false or misleading information to the Department of Human Services with the intent to obtain family tax benefit payments may be considered fraud. Fraudulent claims can result in civil penalties, including financial penalties and the requirement to repay any amounts received. In more serious cases, criminal charges may be laid, with potential penalties including fines and imprisonment. The maximum penalties for fraud can be significant, reflecting the seriousness of such breaches. Additionally, failure to report changes in circumstances that affect eligibility may result in overpayments, which must be repaid to the Department of Human Services.