Family Assistance and Other Legislation Amendment Bill 2013 introduced

The government has fired its latest shot at the family/female vote in Parliament by introducing the Family Assistance and Other Legislation Amendment Bill 2013 yesterday (13 February 2013) into the House of Representatives for its First Reading. The resulting legislation however, appears to be more of a shift in emphasis and reallocation of funding to also meet tightening budget and spending constraints than a range of new spending or initiatives.

Changes to the Baby Bonus

The government’s explanatory memorandum states that the Bill implements changes to the baby bonus announced in the 2012-13 Mid-Year Economic and Fiscal Outlook; changes intended to maintain the support for new parents by helping to meet the upfront costs of having a baby, while also ensuring the family payments system is sustainable into the future.

To this end the government’s Bill reduces the amount of baby bonus for second and subsequent children who come into a family from 1 July 2013 to $3,000. A change that applies generally regardless of whether the child is born into the family, adopted, or entrusted to the family within 26 weeks of being born (eg: foster care).

For the family’s first child the Bill proposes that the baby bonus will continue to be paid at the rate of $5,000 and for each child who comes into the family in a multiple birth, adoption or entrustment to care.

The government contends the changes recognise:

“that families generally do not face the same upfront costs for a second or later child as they do for their first child, with the more expensive items usually already purchased”.

Savings

The governments explanatory memorandum says that:

 “saving from this measure will support the future sustainability of the family payments system, which continues to deliver substantial assistance for low and middle-income families – including through paid parental leave, dad and partner pay, the schoolkids bonus and family tax benefit and child care payments.”

Family tax benefit and double orphan pension

The government’s Bill also proposes amendments to ensure that families can continue to receive family tax benefits until the end of the calendar year that the child finishes secondary study or its equivalent.

In addition the government’s Bill extends the qualification period for a “double orphan pension” (the term for a pension where both parents are for whatever reason not able to care for the child) so that it is aligned with eligibility for family tax benefits. The government stating that this, for example, means that a carer can continue receiving double orphan pension until the end of the calendar year in which the orphan turns 19 (if still in secondary study) or until their 18th birthday if secondary study is complete.

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