Fairness and integrity in
the transfer system
The Government will put fairness and integrity back into the income support system by targeting assistance to those who need it most and improving administration and delivery. Fairer systems will deliver budget savings and support delivery of the Government's social policy agenda in a fiscally responsible manner.
The Family Tax Benefit (FTB) Part B, Baby Bonus and Child Care Benefit (CCB) are currently available to families with high incomes. The Government will make these payments fairer by targeting them better, to where they are needed most.
Family Tax Benefit Part B
From 1 July 2008, FTB Part B will only be paid to families in which the principal earner has an annual income up to and including $150,000. There will be a corresponding change to dependency tax offsets. All these thresholds will be indexed annually.
Baby Bonus
On 1 July 2008, the Baby Bonus will be
increased to $5,000 and indexed annually.
From 1 January 2009, the Baby Bonus will be:
- only available where family income is not greater than $75,000 in the six months from the birth of a child (annualised $150,000), indexed annually
- paid in fortnightly instalments over six months for all recipients
- available to parents who adopt children under 16 years of age.
Child Care Benefit
Only higher income families currently receive the minimum rate of CCB. This
will be abolished for approved care after 1 July 2008. Previous minimum rate recipients will be eligible for the Child Care Tax Rebate at the increased rate of 50 per cent.
Better administration
The administration of family payments will also be improved.
- Administration of most aspects of family assistance will be based in Centrelink (instead of the Australian Taxation Office).
- FTB payments received by families will more accurately reflect their income when their circumstances change.
Better targeting of Family Tax Benefit Part B — impact of income test