Australia s welfare 2015

Transcription

1 5.5 Working-age support: financial assistance for families with children The Australian Government provides payments and services that help families with the cost of raising children, including looking after their children s education and health care, and assisting them in balancing their parenting and work responsibilities. The Department of Social Services is Australia s key social policy agency. The Australian Government delivers payments and services to support families and children through the Department of Human Services delivery agency Centrelink. This snapshot highlights some of the payments available and includes several case studies that highlight the differing payments available to support working-age Australians. Descriptions of available payments do not detail specific payment rates as they vary according to an individual s eligibility, circumstances, income and assets. Supporting families with children There are about 6.7 million family households in Australia (ABS 2015), more than half of which have children and may be eligible for family-related payments, including those listed below. Birth and adoption The Newborn Supplement and Newborn Upfront Payment were introduced on 1 March 2014 to help with the costs of a newborn or adopted child. These payments replaced the Baby Bonus, which was still in place prior to this date. From 1 July 2013 to 28 February 2014, Baby Bonus payments were made to around 110,300 families for around 112,200 babies (DSS 2014a). From 1 March 2014 to 30 June 2014, Newborn Upfront Payments and Newborn Supplements were paid to about 24,200 families (DHS 2014). In , nearly 145,000 eligible working parents (usually birth mothers) received Parental Leave Pay to care for their newborn or newly adopted child. This covers up to 18 weeks pay at the national minimum wage, and cost $1.6 billion (DSS 2014a). In , nearly 75,700 eligible working fathers or partners received Dad and Partner Pay to care for a child born or adopted after 1 January This covers up to 2 weeks pay at the national minimum wage, and cost $92.5 million (DSS 2014a). Raising children In , Family Tax Benefit (FTB) assisted around 7 million parents and children (29% of the population) with the day-to-day cost of raising children (DSS 2014a). FTB is made up of two separate payments, which are both income-tested, and the amount paid is based on a family s individual circumstances. FTB Part A is a per child payment that helps low-to medium-income families with the cost of raising and educating children. FTB Part A includes the FTB Part A end-of-year supplement, which is linked to the Healthy Start for School and the Strengthening Immunisation for Children measures. FTB Part A may include components such as the Newborn Supplement, Multiple Birth Allowance, Large Family Supplement, the Energy Supplement and Rent Assistance. At June 2014, there were around 1.6 million families receiving FTB Part A (DSS 2014a, 2014b).

2 FTB Part B is a per family payment that gives extra assistance to single-parent families and families where one parent has a low income or is not in paid employment. FTB Part B includes the Energy Supplement and the FTB Part B supplement. At June 2014, there were around 1.4 million families receiving FTB Part B (DSS 2014a, 2014b). The Schoolkids Bonus provides eligible families and students with an annual entitlement for each child in primary or secondary school, paid in two equal instalments in January and July. In , 1.2 million families received a payment, at a total cost of nearly $1.3 billion (DSS 2014a). Parenting Payment provides income support for eligible parents or guardians to help with the cost of raising children (DHS 2015d). At June 2014, payments were made to around 104,000 partnered parents and around 260,600 single parents (DSS 2014b). Working-age support case study 1: single-income family with 1 child (aged 2) Michael and Deborah have one child, Rebecca, aged 2. Michael works full-time and Deborah stays at home. Michael earns $82,500 a year. They are buying their own home. The family may be eligible for the following government payments: Family Tax Benefit Part A $57 Energy Supplement Part A $1 Family Tax Benefit Part B $150 Energy Supplement Part B $3 Total $211 Michael and Deborah may also be eligible for the Single Income Family Supplement of $300 a year and other payments and benefits. 2. Specific payment rates will vary according to an individual s eligibility, circumstances and income. 3. Payments are also subject to change as a result of indexation. 2

3 Working-age support case study 2: sole-parent family with 2 children (aged 7 and 9) Jackie is a single mother with two children, Ben, aged 7, and Francis, aged 9. Both children are at school. Jackie works full-time and earns $60,000 a year. She pays $450 a week in rent. The family may be eligible for the following government payments: Family Tax Benefit Part A $307 Energy Supplement Part A $6 Family Tax Benefit Part B $105 Energy Supplement Part B $2 Rent assistance $122 Total $542 Jackie will also receive the Schoolkids Bonus of $844 a year and may be eligible for other payments and benefits. 2. Jackie has full-time care of both children and is not paid Child Support. 3. Specific payment rates will vary according to an individual s eligibility, circumstances and income. 4. Payments are also subject to change as a result of indexation. Help with child care Child Care Benefit (CCB) helps families with the cost of approved and registered care such as long, family or occasional day care, outside-school-hours care, vacation care, pre-school and kindergarten (DHS 2015a). Child Care Rebate (CCR) covers 50% of out-of-pocket child care expenses for approved child care, up to a maximum amount per child per year, in addition to any other child care assistance (DHS 2015b). In , 991,000 families used approved child care services and 986,000 received a child care payment (Department of Education 2014). 3

4 Working-age support case study 3: Dual-income couple with 2 children (aged 3 and 5) John and Liz have two children, Jack aged 3, and Felicity aged 5. Both parents work full-time. Jack goes to long day care 4 days a week and spends 1 day a week with his grandparents. Felicity is at school. John earns $50,670 a year and Felicity earns $40,200. They pay $550 a week in rent. The family may be eligible for the following government payments: Family Tax Benefit Part A $203 Energy Supplement Part A $4 Rent Assistance $46 Child Care Benefit $181 Child Care Rebate $218 Total $652 John and Liz will also receive the Schoolkids Bonus of $422 a year and may be eligible for other payments and benefits. 2. The cost of child care is based on a median cost of long day child care of $77 a day as detailed in the Report on government services The estimate is based on the child being in child care for 10 hours per day. 4. Specific payment rates will vary according to an individual s eligibility, circumstances and income. 5. Payments are also subject to change as a result of indexation. Payments to help study or train The Assistance for Isolated Children (AIC) Scheme helps the families of primary and secondary students who cannot attend an appropriate government school on a daily basis because of geographical isolation. Some tertiary students can receive AIC where they are undertaking vocational education and training or TAFE-level courses as an alternative to school (DSS 2015). Youth Allowance (student and apprentice) is a means-tested payment that provides financial support for full-time students and Australian apprentices aged years to undertake education or training. As at June 2014, about 242,000 Australians received Youth Allowance (student and apprentice) (DSS 2014a, 2014b) (see Chapter 5 Working-age support: assistance with employment and training ). ABSTUDY is a means-tested payment that helps with costs for Aboriginal and Torres Strait Islander Australians studying or undertaking a full-time Australian apprenticeship. ABSTUDY is available for secondary and tertiary students. As at June 2014, about 8,700 Australians received the ABSTUDY living allowance and 24,000 received the non-living allowance (DSS 2014a, 2014b) (see Chapter 5 Working-age support: assistance with employment and training ). 4

5 What is missing from the picture? A person may receive various government payments and use a range of welfare services throughout their working-age life. Using data linkage to identify people who access both payments and services, or multiple services within a sector, could provide new insights into client pathways through the welfare system and help to deliver more effective programs. Such information would be otherwise difficult, burdensome or expensive to obtain. Where do I go for more information? For more information on payments types and their eligibility criteria, visit the Department of Human Services website. References ABS (Australian Bureau of Statistics) Family characteristics and transitions, Australia, ABS cat. no Canberra: ABS. Department of Education Annual report Opportunity through learning. Canberra: Department of Education. DHS (Department of Human Services) annual report. Canberra: DHS. DHS 2015a. Child Care Benefit. Canberra: DHS. Viewed 4 February 2014, < DHS 2015b. Child Care Rebate. Canberra: DHS. Viewed 4 February 2014, < DHS 2015c. Payments for families. Canberra: DHS. Viewed 23 April 2015, < DHS 2015d. Parenting Payment. Canberra: DHS. Viewed 4 February 2014, < DSS (Department of Social Services) 2014a annual report. Canberra: DSS. DSS 2014b. DSS payment demographic data June Canberra: DSS. Viewed 22 October 2014, < DSS Assistance for Isolated Children Scheme guidelines Canberra: DSS. Viewed 12 March 2015, < 5