Social Security measures
Child Care Rebate
The Government will cap the annual Child Care Rebate to the 2008-09 level of $7,500 per child, a decrease from the current annual cap of $7,778 per child. In addition, the indexation of the cap will be suspended for four years from 1 July 2010.
Reducing the cap will not alter the percentage of out-of-pocket expenses reimbursed by the Government, which will remain at 50 per cent up to the annual cap.
Youth allowance: Extending eligibility and increased benefits for low income earners
The concessional arrangements recently implemented to the independence criteria for youth allowance will be extended by continuing to allow access to all workforce independence criteria to the following groups of students:
- Prior to 1 January 2011, the concessional arrangements will apply to students who took a ‘gap year’ in 2009 after completing school in 2008. To be eligible, students must come from a family with a combined annual parental income of less than $150,000 or need to live away from home because their parental home is located more than 90 minutes away from the university of their choice.
- From 1 January 2011, the concessional arrangements will apply to students who need to move away from home to study and whose parental home is located in an area defined as very remote, remote or outer regional. To be eligible, students must come from a family with a combined annual parental income of less than $150,000.
- Students who are not included in these concessional arrangements may establish independence under existing workforce participation criteria until 1 July 2010.
Special Disability Trusts — greater accessibility
Currently, Special Disability Trusts enable parents and immediate family members to put money aside for the future care and accommodation needs of a family member with a severe disability. Up to $551,750 (indexed annually) and the beneficiary’s home can be kept in the trust without being counted as income or assets under the pension means tests for the beneficiary of the trust.
The Government will amend the eligibility criteria and allowable uses for Special Disability Trusts, to make them more accessible and increase uptake.
These changes will expand the definition of a beneficiary to broadly include people with a disability who can work up to seven hours per week. In addition, this measure will amend the allowable uses for the trust to include all medical expenses, including membership costs of private health funds, maintenance expenses of Special Disability Trust property and discretionary spending of up to $10,000 per year.
