Jan McLucas (Queensland, Australian Labor Party, Parliamentary Secretary to the Minister for Health and Ageing) Share this | Link to this | Hansard source

I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

SOCIAL SECURITY AND VETERANS’ ENTITLEMENTS LEGISLATION AMENDMENT (SCHOOLING REQUIREMENTS) BILL 2008

The Social Security and Veterans’ Entitlements Legislation Amendment (Schooling Requirements) Bill 2008 amends the Social Security (Administration) Act 1999, the A New Tax System (Family Assistance) Act 1999, the Student Assistance Act 1973 and the Veterans’ Entitlements Act 1986.  The Bill gives effect to measures announced in the 2008-09 Budget under a package of Welfare Payments Reform initiatives, with this Bill enabling implementation of the Improving School Enrolment and Attendance through Welfare Reform Measure.

The Bill responds to the community expectation that parents should take reasonable steps to fulfil their parental responsibilities, including giving their best efforts to ensure their children are attending school. Attendance at school is one of the principal indicators for school achievement, and students who are regularly absent from school are those at greatest risk of dropping out of school early, becoming long-term unemployed, dependent on welfare and being involved in the criminal justice system.

ABS data suggests that nationally up to 20,000 children of compulsory school age are not enrolled in school or registered for home-schooling according to state/territory law.  The Bill aims to engender behavioural change in those parents who are reluctant to encourage their children to participate in school; by making the receipt of income support payments conditional on parents taking reasonable action to ensure their children are enrolled in school and attending regularly. 

The majority of parents do the right thing by enrolling their children in school and endeavouring to support their children’s attendance at school.  The measure acknowledges the efforts of these parents by placing a minimal impost on them.  Parents with children of compulsory school age who are affected by the measure will need to provide Centrelink with details about their child’s school enrolment.  This will generally be verbal information that can be provided as part of the parents’ routine reporting to Centrelink

Consistent with current responsibilities, state education authorities and non-government schools will be responsible for monitoring school attendance.  In those cases where children have unsatisfactory school attendance and their parents do not take reasonable steps to work with the school to address the situation, the education authority or school can choose to notify Centrelink.  Centrelink will attempt to engage those parents who are in receipt of income support, alerting them to their responsibilities and offering assistance to help them overcome any barriers that may be impacting on their ability to satisfy the requirements of the school.  Centrelink will draw on the expertise of their social workers in dealing with parents who may be experiencing particular difficulties.

The Bill acknowledges that some children, particularly young adults, do not have satisfactory school attendance despite concerted actions by parents to encourage regular school participation.  Under the measure, parents who are taking reasonable steps to ensure their children attend school will be considered to be satisfying their requirements.

For those few parents who persistently refuse to enrol their children in school or support their children to attend school, the Bill provides Centrelink with the ability to suspend income support payments until parents meet their requirements.  Suspension of payments would only be used as a last resort following repeated attempts to engage a parent over a considerable time period and would only be applied in those cases where a parent has not provided a reasonable excuse or there are other special circumstances accounting for their inability to comply. 

Once a suspension period commences, parents will have at least a further 13 weeks to meet their requirements in relation to the schooling of their children.  If they comply within this period, parents will have their payments restored with full back pay.  In certain circumstances, restoration and back pay of payments may also extend to suspension periods in excess of 13 weeks.  Only in the most extreme cases of parental non-cooperation, where there is no evidence of a reasonable excuse or special circumstance, and only after a minimum of 13 weeks of suspended payments, it may be appropriate to cancel income support payments.  If any parents find themselves in this situation they will have the normal rights of appeal guaranteed by the social security law, and payment will continue pending the outcome of any appeal.

It is anticipated that a very small number of parents will have their income support payments suspended and even less, if any, will have their payments cancelled.  The Bill has been carefully developed to ensure that mechanisms are available to minimise any adverse effects on parents and their families as an outcome of suspended income support payments.  For example, even though a parent may not have satisfied their requirements under the measure, the Bill allows for the temporary lifting of a suspension as an inducement to encourage parental cooperation.  Family Tax Benefit will not be affected by the measure and will continue to be payable, subject to normal eligibility.

Subject to negotiations with states/territories, the measure will initially be trialled in selected locations, including six sites in the Northern Territory and two metropolitan sites in other jurisdictions.  The intention is that the Commonwealth will work closely with trial jurisdictions.

INTERNATIONAL TAX AGREEMENTS AMENDMENT BILL (No. 1) 2008

This Bill gives the force of law to a new tax treaty with Japan.  The new Convention, which will modernise and enhance the bilateral tax arrangements between Australia and Japan, was signed in Tokyo on 31 January 2008.  It replaces the existing tax treaty that has been in place since 1969.  This Bill will insert the text of the new Convention into the International Tax Agreements Act 1953 and repeal the existing treaty.

Tax treaties facilitate trade and investment by minimising tax barriers between treaty partner countries.  The importance of tax treaties is magnified where the economic relationship is as significant as that between Australia and Japan.  The new Convention underlines the strength of the modern and sophisticated bilateral ties between the two countries.

Japan is Australia’s third largest investor.  Direct investment by Japan continues to play a key role in the development of many Australian industries, including export industries such as car manufacturing and natural resource development activities that have driven Australia’s export performance.  Australia is now one of the largest recipients of offshore investment by Japanese mutual funds.  From Australia’s perspective, Japan is the fourth largest destination of Australian investment abroad while also being Australia’s largest export market for more than 40 years.

Responding to the needs of both Australian and Japanese business, the new Convention comprehensively updates the existing tax treaty arrangements with Japan. Key outcomes from the Convention include:

• lower withholding taxes on dividend and royalty payments for businesses looking to expand offshore and to obtain access to valuable intellectual property;
• specified interest withholding tax exemptions that will facilitate more competitive and accessible cross-border debt arrangements; and
• broadly aligning capital gains tax treatment with international practice and with Australia’s domestic law.

The treaty also ensures Australia’s revenue base is appropriately protected by:

• preserving taxing rights over income from real property and income arising from activities related to Australia’s natural resources; and
• enhancing information exchange provisions which allow the tax administrations of both countries to share tax information.

Public submissions received as part of the review of Australia’s tax treaty program and policy announced by the Government earlier this year strongly supported the outcomes of this Convention. The new Convention will enter into force 30 days after both countries advise that they have completed their domestic requirements which, in the case of Australia, includes enactment of this Bill.

The treaty has been considered by the Joint Standing Committee on Treaties, which has recommended that binding treaty action be taken.

Full details of the amendments brought forward in this Bill are contained in the explanatory memorandum.

Ordered that further consideration of the second reading of these bills be adjourned to the first sitting day of the next period of sittings, in accordance with standing order 111.

Ordered that the bills be listed on the Notice Paper as separate orders of the day.