Minority report - Australian Greens
Families, Community
Services and Indigenous Affairs Legislation Amendment (Child
Support Reform Consolidation and other Measures) Bill 2007
Introduction
The Australian Greens support the need for reform to the
child support scheme. While the Australian Greens are supportive of the overall
intentions of the proposed changes in this Bill, we remain concerned about
several aspects. These include principal carers, the baby bonus, and the
development of modelling to investigate the impact of changes to child support
arrangements.
Financial Impact
The Australian Greens remain concerned about the potential
impact on low income households of the changes to child support, particularly
when they are considered in combination with the financial impacts of the
changes introduced through Welfare to Work.
As articulated in our Additional Comments Report on the
Child Support Legislation Amendment (Reform of the Child Support Scheme - New
Formula and Other Measures) Bill 2006, the Greens are concerned that there is
no publicly available modelling to estimate the impact of the new system on
existing child support recipients and payers.
While we are pleased that FaCSIA will be monitoring the
impact of the changes following their implementation, we believe that modelling
should occur before implementation in order to assess potential impact.
Monitoring after the fact means that many families may have already been
adversely affected before we are able to be made aware of the extent of the
problem. As there will be a significant time delay before the monitoring data
will be available and can be acted upon, this means that families may be
suffering a significant lowering of income for some time before measures are
put in place to rectify these adverse impacts.
The Greens believe that modelling of the potential impact
should be done immediately, and provisions put in place to protect low income
families who may lose income as a result of the Bill.
Such protections are critical given the risk of poverty
already confronted by many of these families.
Recommendation 1
Development of an appropriate system of modelling
to investigate the impact of child support income changes combined with the
Welfare to Work changes to determine overall financial results for all
families.
Principal Carers
The Australian Greens have on a number of occasions raised
concerns about the 'principal carer' provisions of the existing income support
system.
Greens Senators believe the current approach - which only
recognises one parent as the principal carer - is inequitable, manifestly
unfair and will significantly disadvantage children.
Evidence presented to the Committee outlined concern with
this approach:
Ms Taylor— ...On the one hand we have family law and child
support law encouraging shared parenting and acknowledging where there is 35
per cent or more of care—between 35 to 65 per cent care is considered
shared—but, on the other, on income support policy under social security law,
only one parent can be given principal carer status leaving the other parent
and the children exceptionally vulnerable.
The National Council of Single Mothers and their Children
pointed out in their submission:
This means that the
half-time children in the household of the person who is not deemed under
Social Security law to be the Principal Carer will not attract the protections
available to Principal Carers in the income support system. The impact of this
disjuncture in definitions is most acute for young children whose parents are
both dependent on income support and are thus likely to be highly
disadvantaged.
The Greens believe that urgent reform is needed to address
this inequity.
Recommendation 2
That the income support definition of Principal
Carer be aligned with the intent of the Family Law changes to reflect the
concept of shared parenting such that, where parents sharing care of children
each receive income support and the difference in percentage responsibility is
12% or less, both be deemed principal carers.
Baby Bonus
The Australian Greens recognise the potential temptation of
misuse associated with a lump sum baby bonus payment which has given raise to
the proposed amendments in this Bill. However, we believe that this issue
extends to a wide range of expectant parents, not just those under the age of
18, and so we believe that these provisions should apply to ALL recipients of
the baby bonus and not just to a sub-group chosen purely because of their age.
We also appreciate that there are circumstances where a lump
sum payment may be appropriate for a one off purchase of a large item relating
to the needs of a new family, and for helping new parents to purchase necessary
baby furniture and equipment to set themselves up to care for their child.
Therefore, while we support the general intention of the proposed change, it
should be moderated by the allowance for discretionary payment of the allowance
as a lump sum.
Recommendation 3
That the provisions relating to periodic payment
be extended to all recipients of the Baby Bonus, and not limited to under 18
year old mothers.
Recommendation 4
That the format of the periodic payment be able to
be varied where there is a strong case for a lump sum payment or on the
recommendation of a qualified social worker.
Senator
Rachel Siewert
Australian Greens
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