Greg Hunt (Flinders, Liberal Party, Parliamentary Secretary to the Minister for Foreign Affairs) Share this | Hansard source

I rise on behalf of the Minister for Families, Community Services and Indigenous Affairs to speak on the Families, Community Services and Indigenous Affairs Legislation Amendment (Child Support Reform Consolidation and Other Measures) Bill 2007. The purpose of this follow-up bill is to complete consequential amendments and make minor refinements needed for the implementation of the new child support formula on 1 July 2008. The bill consolidates the government’s substantial 2006 legislation that restructured the Child Support Scheme in line with the recommendations of the ministerial task force on child support chaired by Professor Patrick Parkinson.

The bill makes a variety of other amendments to Families, Community Services and Indigenous Affairs portfolio legislation. This bill makes refinements to the major 2006 child support legislation. A more fair treatment of child support will be made where there are children of different ages in different households. Child support agreements between parents are being better supported and strengthened and their interaction with family tax benefit clarified. Remote area allowance under the social security and veteran’s entitlement legislation is being extended, so parents with regular care of a child—that is, care of between 14 and 35 per cent—will continue to receive the allowance after the 1 July 2008 changes to family tax benefit.

Some of the processes relating to the review of child support decisions by the Social Security Appeals Tribunal are being clarified and the changed arrangements with the courts refined. The bill relocates some provisions from the Child Support Legislation Amendment Bill 2004. While that bill has been overtaken by the reform of the Child Support Scheme, some measures are still required. The provisions move measures from the regulations into the primary child support legislation, allowing Australia to meet its international child support obligations. Some refinements are also being made to the provisions after years of experience of their operation.

The 2004 bill measures include several amendments to improve equity between the two parties to a child support case in accessing the court for review of any decision about whether one of the parties is a parent of the child in question. Some minor streamlining refinements are also being made to the internal review system for child support decisions generally.

The last of the 2004 bill measures are of a minor policy or technical nature and are generally to address anomalies in the current system or to improve aspects of child support administration—for example, amendments to broaden the ways in which an application for an extension of time to lodge an internal review application, known as an ‘objection’, can be made. The new bill also includes several family assistance amendments—for example, the maintenance income test provisions for family tax benefit are being refined. This is partly to reflect the new treatment under the child support reforms for child support agreements and lump sum child support.

Refinements are also being made to certain elements of the formula used to work out the notional amount of maintenance income an individual is taken to have received under a child support agreement or court order where there is an underpayment of child support registered for collection by the Child Support Agency. It is also being clarified that maintenance income received by a payee for one or more children would reduce the payee’s amount of family tax benefit part A above the base rate for those children only.

Separate amendments to the baby bonus provisions will formally rename the payment the ‘baby bonus’, rather than the ‘maternity payment’, in line with most people’s understanding. Under-18-year-old claimants will be paid the baby bonus in 13 instalments, rather than in a lump sum, and registration of birth as a condition of eligibility for the baby bonus will be introduced. Under this bill, the usual 13-week period for full payment of family tax benefit while temporarily outside Australia will be extended for members of the Australian Defence Force and certain Australian Federal Police personnel in the International Deployment Group who are deployed overseas as part of their duties and, as a result, remain overseas for longer than 13 weeks.

Cyclone Larry has shown that a year may not be long enough where the rebuilding efforts of a disaster-affected community are stretched. The bill will extend the current 12 months principal home temporary absence rules for absences of up to 24 months for people who have suffered loss or damage to their homes due to a disaster. The bill will also assist people who cannot purchase or build a new home within 12 months due to factors beyond their control by extending the asset test exemption of principal home sale proceeds from 12 months up to 24 months. Another measure ensures the claim rules for the new Australian government disaster recovery payment work correctly for non-resident Australian citizens.  Lastly, the bill will make minor refinements to the operation of the income streams provisions of the social security and veterans’ means tests.

On behalf of the minister, I thank all of those officials and community members involved in the consultation for and preparation of this bill. I also thank the speakers on both sides of the House. I am delighted to commend the Families, Community Services and Indigenous Affairs Legislation Amendment (Child Support Reform Consolidation and Other Measures) Bill 2007 to the House.

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