FAMILY ASSISTANCE LEGISLATION AMENDMENT (PARTICIPATION REQUIREMENT) BILL 2009

2008-2009

The Parliament of the

Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

Family Assistance Legislation

Amendment (Participation Requirement)

Bill 2009

No. , 2009

(Families, Housing, Community Services and Indigenous Affairs)

A Bill for an Act to amend the law relating to

family assistance, and for related purposes

i Family Assistance Legislation Amendment (Participation Requirement) Bill 2009 No.

, 2009

Contents

1 Short

title

...........................................................................................

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

Family Assistance Legislation Amendment (Participation Requirement) Bill 2009 No. ,

2009 1

A Bill for an Act to amend the law relating to

family assistance, and for related purposes

The Parliament of Australia enacts:

1 Short title

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.

2 Family Assistance Legislation Amendment (Participation Requirement) Bill 2009 No.

, 2009

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.

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.

FTB activity test Schedule 1

Amendments Part 1

Family Assistance Legislation Amendment (Participation Requirement) Bill 2009 No. ,

2009 3

Schedule 1--FTB 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)

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 full-time 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:

Schedule 1 FTB activity test

Part 1 Amendments

4 Family Assistance Legislation Amendment (Participation Requirement) Bill 2009 No.

, 2009

(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;

(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

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 full-time 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

FTB activity test Schedule 1

Amendments Part 1

Family Assistance Legislation Amendment (Participation Requirement) Bill 2009 No. ,

2009 5

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 16-17

(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

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 18-20

(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

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 day-to-day 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

Schedule 1 FTB activity test

Part 1 Amendments

6 Family Assistance Legislation Amendment (Participation Requirement) Bill 2009 No.

, 2009

is someone with whom the individual is supposed to live or

spend time; or

responsibility for the day-to-day 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

FTB activity test Schedule 1

Amendments Part 1

Family Assistance Legislation Amendment (Participation Requirement) Bill 2009 No. ,

2009 7

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

full-time 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)".

Schedule 1 FTB activity test

Part 2 Application and transitional

8 Family Assistance Legislation Amendment (Participation Requirement) Bill 2009 No.

, 2009

Part 2--Application 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 May 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 May 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 April 2010.

Commonwealth of Australia Bills

FAMILY ASSISTANCE LEGISLATION AMENDMENT (PARTICIPATION REQUIREMENT) BILL 2009