Santo Santoro (Queensland, Liberal Party, Minister for Ageing) Share this | Hansard source

I thank all senators who have spoken, particularly Senator Evans and Senator Bartlett for their supportive comments. The government appreciates the support of the Democrats and the Labor Party in relation to this bill. In particular, I would also like to say how much I appreciated listening to Senator Patterson make her contribution. I just remarked to Senator Ferris, the Government Whip, how wonderful it is to listen to somebody who obviously has such a strong commitment to this vital area of government policy. I would also like to acknowledge her great contribution regarding the contents not just of this bill but of other bills associated with the Families, Community Services and Indigenous Affairs portfolio. I am sure that everybody would acknowledge the sincerity, the hard work and the insights that Senator Patterson as a very successful and determined cabinet minister brought to bear on initiatives such as those that we are debating here today. It is a pleasure to be able to listen to people who see their commitment bear the fruit that we are witnessing here today.

This is a good news bill because it contains several 2006 budget measures along with further important government initiatives. In a continuation of the government’s program of support for Australia’s low- and middle-income families, many of the measures from the 2006 budget increase family tax benefit part A entitlements. Notably, families will now get more family tax benefit part A through an increase in the income-free area to $40,000, up from $33,361 in 2005-06. That is the amount of income they can earn each year before their payment is affected. This initiative will deliver over $993 million in additional assistance over four years, bringing benefits worth up to $9.60 per week in increased part A payments to almost half a million families and increased eligibility for health care cards for around 35,000 families.

Through this bill, more families will have the special payment known as the large family supplement included in their family tax benefit part A. This payment is currently valued at $248 annually and is available only to families with four or more children. Families with three children, who also have significant parenting expenses, will now be eligible for the supplement. Family tax benefit part A recipients will also benefit from the new maintenance income credit provided by this bill. This measure addresses the fact that child support payees receiving family tax benefit part A cannot control when they receive their child support payments, which may disadvantage them if they received lump sum child support arrears in a year later than when they were due. This disadvantage arose because the benefits of the maintenance income free area for the year when the arrears were due were not available. Now, however, families will have access to their unused maintenance income free area from previous years to offset any late child support payments, leading to increased family tax benefits.

Recipients of a mature age widow or partner allowance are among the group of older Australians to receive a 2006 one-off payment equal to the annual rate of utilities allowance, currently $102.80, under the government’s budget announcement this year. To build on this one-off bonus, an ongoing entitlement to utilities allowance is established for the first time for recipients of those three allowances. This will widen the support given by the government to older Australians in meeting their everyday household expenses, such as gas and electricity.

A new streamlined, flexible and coordinated payment for Australians affected by onshore and offshore disasters known as the Australian government disaster recovery payment is being introduced by this bill. The new payment will enable the government to provide emergency assistance for offshore disasters similar to the 2002 and 2005 Bali bombings, the 2004 Asian tsunami, the 2005 London bombings, the 2005 Eyre Peninsula bushfires or tropical Cyclone Larry in 2006. The new payment builds on existing arrangements and standardises the type of ex gratia government assistance that was provided in response to those previous events while allowing maximum responsiveness to support the Australian community at such times of crisis. Any adult Australian resident affected by an eligible natural or non-natural disaster, whether within Australia or offshore, may claim the payment. Initially, a person adversely affected by a major disaster will be able to claim up to $1,000 for himself or herself and $400 for each child in his or her care.

Under this bill, parents of children with severe intellectual, psychiatric or behavioural disabilities may qualify for the carer payment. These children often present significant caring demands, especially if they cannot attend school or if their behaviour is a risk to the safety of themselves or others, effectively preventing their parents from supporting themselves through workforce participation. In recognition of this, some parents may now qualify for the carer payment under the extended eligibility criteria.

Families concerned about the future care and accommodation needs of their sons and daughters with severe disabilities will be supported in attempting to provide financial security for the time when the families may no longer be able to provide care. If these families are able to make private financial provision through a special disability trust for the future of their family members with severe disabilities, special new means test concessions will apply. The new provisions will recognise a special disability trust established by immediate family members for the current and future care of the severely disabled person. As a consequence, the severely disabled person’s social security payment, such as the disability support pension, will now not be affected by any trust income or trust asset, up to the value of $500,000.  Furthermore, gifts to the trust to a total of $500,000 from immediate family members of age pension age will not affect the donor’s social security payment. This means that the usual Social Security Act and Veterans’ Entitlements Act provisions that limit the assets a person can hold or give away without those assets affecting their entitlements to payments will be relaxed.

The bill also amends the Family Law Act to implement changes to the governance arrangements of the Australian Institute of Family Studies as part of the government’s response to the recommendations of the review of the corporate governance of statutory authorities and office holders, conducted by Mr John Uhrig. The executive management governance arrangements recommended by the Uhrig review have been assessed as being the most appropriate arrangements for the institute. Therefore, the bill will enhance the institute’s governance arrangements to make them fully consistent with executive management governance arrangements. The enhancements will include, for example, making the institute a prescribed agency under the Financial Management and Accountability Act. In keeping with the government’s knowledge and innovation policy announcement of 2001, the institute will remain a statutory agency separate from the Department of Families, Community Services and Indigenous Affairs. Finally, the bill makes a small number of minor family assistance and social security refinements in line with current policy. I thank all senators for their support of this bill, which I commend to the Senate.

Question agreed to.

Bill read a second time.