Social Services Legislation Amendment (Omnibus Savings and Child Care Reform) Bill 2017 Introduced
Thursday 9 February 2017 @ 11.31 a.m. | Legal Research
The Federal Government yesterday (8 February 2017) introduced the Social Services Legislation Amendment (Omnibus Savings and Child Care Reform) Bill 2017 into the House of Representatives. The 2017 Bill reintroduces the Government’s “Jobs for Families Child Care Package” and represents the third attempt to cut back the existing paid parental leave scheme. The Bill introduces a number of changes to social services, some of which were introduced previously, some that are new to the Bill. According to ABC News, the Government is expecting to save $3.8 billion over four years with the changes in the bill, although the Minister for Social Services, Mr Porter, also acknowledged that the “landscape in the Senate” meant the Government may have to make some compromises to secure the bill’s passage.
Introducing the Bill into the House of Representatives, Mr Porter said:
“The government wants a welfare system that supports the most vulnerable, encourages those capable of work or study to do so, reduces intergenerational welfare dependency, and is sustainable for the future. While the Australian welfare system is highly targeted, sensible changes that contribute to longer-term sustainability should be pursued given the budget context. Otherwise, the next generation of Australians will be left with more debt to repay and higher taxes.”
Overview of the Proposed Changes
Some of the proposed changes included in the bill are:
- From 1 July 2018: “The family tax benefit Part A standard fortnightly rate will be increased by $20.02 for each FTB child in the family aged up to 19. An equivalent rate increase, of around $19.37 per fortnight, will apply to youth allowance and disability support pension recipients aged under 18 and living at home.”
- The family tax benefit Part A supplement for families with an adjusted taxable income of $80,000 a year or less will be phased out by “reducing it to $602.25 a year from 1 July 2016, and to $302.95 a year from 1 July 2017. It will then be withdrawn from 1 July 2018.”
- “The family tax benefit Part B supplement will also be phased out. It will be reduced to $302.95 a year from 1 July 2016, and to $153.30 a year from 1 July 2017. It will then be withdrawn from 1 July 2018.”
- Introduction of a new “Child Care Subsidy”
- The period during which the age pension and some other payments can be paid outside Australia at the basic means-tested rate will be reduced from 26 weeks to six weeks.
- The pensioner education supplement and education entry payment will both be ceased.
- Pausing the indexation of income-free areas for working age payments, parenting payments and student payments
- The energy supplement will be closed to new welfare recipients
- Young unemployed people aged 22 to 24 will no longer be eligible for newstart allowance or sickness allowance, and may only receive the lower youth allowance payment.
- A four-week waiting period will be introduced for young people looking for work before they can receive income support payments. They “will also be required to complete assigned activities, through a new program, RapidConnect Plus, that will help them prepare for and find work.”
- The paid parental leave scheme will be extended by the Government from 18 to 20 weeks, although women will still not be able to access the full benefit if their employer also offers paid leave.
The Bill is currently awaiting Second reading debate in the House of Representatives.
TimeBase is an independent, privately owned Australian legal publisher specialising in the online delivery of accurate, comprehensive and innovative legislation research tools including LawOne and unique Point-in-Time Products.
Sources:
Social Services Legislation Amendment (Omnibus Savings and Child Care Reform) Bill 2017 (Cth), Explanatory Memorandum and Second Reading Speech - available from TimeBase's LawOne Service
