A new tax system
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COMMUNITY
SECTOR
BRIEFING KIT
Information prepared by:
Department of the Treasury
Department of Health and Aged
Care
Department of Family and Community Services
A
new tax system
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How to use this Briefing Kit
This Kit has 3 parts:
1
An Overview of "A new tax system"
2
Frequently asked Questions and Answers about elements of the proposed tax changes
3
Official Fact Sheets prepared by the Department of the Treasury
The Overview (Part 1) outlines the key components of the reforms. It includes general
information on the principles of tax reform, the operation of the Goods and Services Tax and
some of the key changes affecting customers and stakeholders in the community sector.
The Questions and Answers (Part 2) are provided as a supplement to the Overview. They
"fill in the blanks" and provide specific information on a range of proposed reforms,
particularly how they affect payments and services. This section is a key part of this Briefing
Kit. The Questions and Answers were developed partly in response to issues raised during
consultation with the community organisations, which followed the introduction of the
reform package. In this sense they address some of the key issues raised by the community
sector itself.
A set of Fact Sheets further complements Parts 1 and 2. The Fact Sheets contain information
and details covering a wide cross section of the complete reform package. The Fact Sheets
are essentially summary pages of particular components within the reform package. They
also place the other information sections in context. The Fact Sheets are referred to within
the Overview and the Questions and Answer sections where they relate to the issue being
explained.
Each of the parts has a brief reference index to assist the user to find relevant information.
The combination of these 3 parts provides a comprehensive reference source on the tax
reform package for the community sector.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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A new tax system
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COMMUNITY
SECTOR
BRIEFING KIT
OVERVIEW
Information prepared by:
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new tax system
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GST and tax reform: Briefing for the community sector
Purpose
This information kit provides general information for community sector
organisations on the government’s tax reform package.
Proviso
Many of the Bills on which this document is based were introduced into
Parliament on 2 December 1998 (others will be introduced in the coming
months). These bills may be amended through the Parliamentary processes.
People affected by these changes may wish to seek professional advice on
how these measures might affect their particular circumstances.
The Commonwealth will not accept responsibility for any action taken which
relies on information in this paper. The information in this paper is current as
at 14 January 1999.
More
information
You can visit the tax reform web site at:
http://www.taxreform.gov.au
Information prepared by:
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Department of Health and Aged Care
Department of Family and Community Services
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Contents
A new tax system - GST and tax reform
COMMUNITY SECTOR BRIEFING KIT - OVERVIEW
1. General Description ................................................................................................................... 1
Principles of taxation reform ...................................................................................................... 1
How the GST works.................................................................................................................... 2
2. Impact of the GST on service providers ................................................................................. 4
3. Pensions, allowances, threshold amounts and taper rates ....................................................... 6
Increased pensions, allowances and rebates ............................................................................... 7
Threshold amounts ...................................................................................................................... 7
Pension taper rates ...................................................................................................................... 8
4. Bonus Payments ...................................................................................................................... 9
5. Assistance for families ............................................................................................................ 9
Increasing the amount of assistance .......................................................................................... 10
Improving work incentives ....................................................................................................... 10
Simpler structure and delivery .................................................................................................. 10
6. Fringe Benefits Tax Reform ................................................................................................. 13
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
1. General Description
Principles of taxation reform
Introduction
On 13 August 1997, the Prime Minister announced five principles of taxation
reform:



there should be no increase in the overall tax burden;
the new taxation system should involve reductions in personal income tax;
a broad based consumption tax (GST) should replace some or all existing
indirect taxes;
 appropriate compensation should be given to those deserving of special
consideration; and
 reform of commonwealth – state financial relations must be addressed.
It is proposed that the legislation for the Government’s tax reform package
will come into effect on 1 July 2000.
No increase in
overall tax
burden
The new tax system will not increase the overall tax burden in Australia.
Instead it will broaden the tax base. This will simplify the tax system and
reduce tax on some parts of the economy and society.
Reductions in
personal
income tax
Personal income tax cuts are to be provided to all taxpayers, with reductions
in the marginal tax rates for about 95% of individual taxpayers. This will
result in personal income tax cuts totalling over $13 billion a year from
July 2000. The following table shows the changes to income tax rates.
Current scale
Taxable income
Tax rate (%)
0 – 5,400
0
5,401 – 20,700
20
20,701 – 38,000
34
38,001 – 50,000
43
50,000 +
47
Information prepared by:
New scale
Taxable income
Tax rate (%)
0 – 6,000
0
6,001 – 20,000
17
20,001 – 50,000
30
50,001 – 75,000
40
75,000 +
47
Department of the Treasury
Department of Health and Aged Care
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How the GST works
Goods and
Services Tax –
a basic
explanation
The GST is not an extra tax to be placed on top of existing taxes. It is an
open and simple tax that replaces a number of other taxes. A GST is a tax
that is levied on goods and services and is effectively paid by the consumer of
that good or service. In Australia the GST rate will be set at 10%. This does
not mean that all goods or services will go up by 10% as in many cases the
sale price will be reduced because of the removal of other taxes. Businesses
forward the amount of GST paid to the Australian Taxation Office (ATO),
less any input tax credits.
Where a GST has been paid on goods that have gone into producing the item
these costs will be able to be claimed back as input tax credits. In order to
claim input tax credits a business or person would have to be registered for
GST purposes.
Broad based
consumption
tax
Under the tax reforms a 10% broad based GST is to replace the wholesale
sales tax and nine other state and territory taxes including:



State taxes on bank transactions;
stamp duties on business related transactions; and
bed taxes.
The GST is effectively paid by the final consumer of an item or service.
Registered businesses or persons that have paid GST on inputs that go into
producing that item or service will be able to claim credit for the GST they
have paid.
Commonwealth
- State financial
relations
Nine types of State taxes will be abolished as part of the tax reforms. State
Premiers requested the abolition of these types of taxes and charges in the
context of tax reform. In return the Commonwealth is providing the States
with all GST revenue, which is considerably more than compensation for the
abolition of these State taxes. This will provide State governments with a
growing and stable source of revenue to fund important community services,
such as roads, hospitals and schools. It will also allow the States to reduce
their reliance on a range of narrow and growth-reducing taxes.
Continued on next page
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How the GST works, continued
Registered
business or
person
The GST will apply to all supplies made by a registered business or person
engaged in taxable activity. A taxable activity is any supply of goods or
services for payment, whether in cash or kind. Individuals, partnerships,
companies, trusts and other bodies that engage in taxable activity are required
to register if annual sales are $50,000 or more. Non-profit clubs and
associations will have to register if annual sales (including membership fees
but excluding donations) are $100,000 or more.
Private sales by unregistered people will not be taxed (eg. goods sold in a
garage sale).
Example: GST
levied on an
item of
furniture
The following shows how this system would work in the manufacture and
sale of an item of furniture:
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Input taxed
A timber merchant sells $100 of timber to a furniture manufacturer. A
10% GST of $10 is charged. The manufacturer pays $110.
The manufacturer uses the timber to make an item of furniture. The
timber is an input and therefore the $10 GST paid can be claimed back as
an input tax credit. The manufacturer sells the item to a furniture retailer
for $250. With a GST of $25 the retailer pays a total of $275.
The retailer is able to claim the $25 GST as an input tax credit. The item
is then sold on to the consumer for $500. With a GST of $50 the total cost
of the item to the consumer is $550.
The consumer cannot claim any credit for the $50 GST that was levied on
the furniture.
The final and only amount of tax paid that is kept by the ATO is the $50
paid by the consumer.
Input taxed means there is no GST on the sale of these goods and services.
However, a registered person or business cannot claim input tax credits on the
item. Residential rent is an example. The landlord does not charge a GST
on the rent but cannot claim reimbursement for GST paid on items bought for
the accommodation. This places the landlord in the same situation as an
owner-occupier.
The ATO will, therefore, receive any GST paid on inputs.
Continued on next page
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GST-free
GST-free means that no GST is levied on the sale of these goods or services.
However, a registered person or business can claim back input tax credits.
Goods and services that are GST-free should fall in price.
A registered person or business that provides only GST-free services will
receive a net refund of GST.
2. Impact of the GST on not for profit service providers
Additional Information can be found in:
Fact Sheet 223(i), 226(i) and 404(i)
Question and Answers: Sections 1-11
Introduction
The following section outlines the effects of the proposed tax reforms to the
commercial and charitable activities of non-profit service providers as well as
looking at other areas of interest.
The non-commercial activities of charities and public benevolent institutions
will be GST-free. GST will not be charged on the non-commercial supply of
goods and services and these organisations will be eligible for a credit of any
GST paid on their inputs.
Registering for
the GST
Commercial organisations with annual sales of $50,000 or more are required
to register for the GST. Non-profit bodies will be required to register for the
GST if they have annual sales, which includes membership fees, of $100,000
or over. Non-profit bodies that have sales under $100,000 are not required to
register although they may do so if they wish, and will be able to claim input
tax credits.
All organisations that register will be required to charge a GST on their
activities. However, where they are charities their non-commercial activities
will be GST free. Organisations will be able to claim input tax credits on
their purchases unless these purchases relate to input taxed activities.
Organisations that do not register will not be required to charge the GST on
their sales. However, they will not be able to claim for any tax paid on
purchases.
Continued on next page
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Impact of the GST on service providers, continued
Commercial
and noncommercial
activities
When a charity provides goods or services at a commercial price, those goods
or services will be subject to GST.
Donations and
fundraising
Donations are not payments in return for goods or services and no GST is
payable upon the receipt of genuine donations. Where fundraising (eg a car
raffle) activities by charities fit the definition of non-commercial supply,
those activities will be GST-free.
Opportunity
shops
An activity that is commonly undertaken by charities and non-profit
organisations is the running of opportunity shops. In general the goods
stocked in these shops have been donated as second hand goods. The sale of
these second hand goods will be GST-free. The sale of donated new goods by
a charity will attract GST unless the supply is for nominal consideration.
Non-commercial supplies are GST-free. Non-commercial supplies are
supplies for nominal consideration and supplies of donated second hand
goods. A supply for nominal consideration is something that is sold for less
than 50% of the tax inclusive market value, or less than 50% of the tax
exclusive cost to the charity of providing the supply.
However, goods that have been reprocessed lose their GST-free status. For
example, clothing that has been cleaned and repaired before sale would be
GST-free while clothing that has been recycled into industrial cleaning rags
would attract a GST, unless the supply is for nominal consideration (in which
case they would be GST –free).
Government
grants
Government grants are not payments in return for goods or services and will
not attract a GST. However, many payments by governments are also called
grants but are in fact payments for providing specified services. In these
cases, they will be subject to GST, but where the recipient is a registered
entity, the transaction will be one between two registered entities and so will
have no net GST implications.
Continued on next page
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new tax system
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Impact of the GST on service providers, continued
Fees for service
Many charities derive some degree of income by charging fees for services
that rarely, if ever, attempt to cover the full cost of that service. If the fee
charged is less than 50% of the normal market price of that service, or is less
than 50% of the cost to the organisation of supplying that service, it cannot be
a commercial supply and therefore is considered a supply for nominal
consideration. These fees will not attract a GST.
Government
Services
Services of governments that have no specific fee will be outside the scope of
the GST. There will not be any GST on most taxes and charges including:
 Income tax;
 Medicare levy;
 Land tax;
 Stamp duties;
 Motor vehicle registration;
 Water rates and charges;
 Sewage rates and charges; and
 Local government rates.
Financial
assistance to
organisations
The Government will provide financial assistance of up to $500 million in
total to organisations which register for GST, including charitable
organisations, to upgrade their record keeping capacity through software and
hardware, so the start-up costs of the GST are minimised. The Small
Business Consultative Committee will carry out consultations to ensure that
financial incentives are targeted and delivered in the most effective way.
3. Pensions, allowances, threshold amounts and taper
rates
Additional Information can be found in:
Fact Sheet 106(i)
Question and Answers: Section 12
Information prepared by:
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Department of Health and Aged Care
Department of Family and Community Services
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Overview
From 1 July 2000 all pensions, allowances and thresholds will be increased.
There will be a reduction in the current taper rate under the income test for
some income support payments. The pensioner tax rebate and tax rebate for
low income aged persons will also be increased.
Increased pensions, allowances and rebates
4% increase in
pensions and
allowances
All pension and allowance income support payments, including almost all
non-indexed rates, will be increased by 4% from 1 July 2000. This figure is
comprised of a 2.5 % compensation in advance for the effect of the GST and
other elements of the package on prices, plus a 1.5 % real increase in
pension/allowance rates.
On estimates done at the time the new tax system was announced, the
maximum rates of pension were expected to increase by around $15.50 a
fortnight for single pensioners and $12.75 a fortnight for each of a pensioner
couple. The exact increase in pensions and allowances will depend on the
effect of normal indexation arrangements up to July 2000.
Non-indexed rates of assistance, which are not subject to automatic
indexation increases under normal circumstances, will also be increased by
4%.
Increased tax
rebates
There will be an increase in the maximum Pensioner Tax Rebate and the Tax
Rebate for low income aged persons. This will be increased by $250 a year
for single people and $175 a year for each member of a couple.
Impact on
MTAWE
adjustment
It is Government policy that the maximum rate of single pension be
maintained at least at 25% of Male Total Average Weekly Earnings
(MTAWE), and other rates of income support pension be adjusted
accordingly. The 4% increase on 1 July 2000 is likely to lift the pension rate
above 25% of MTAWE.
Threshold amounts
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2.5% increase
in threshold
amounts
All threshold amounts – income free areas and assets limits – will be
increased above the 30 June 2000 amount by 2.5%.
Impact on
pensioners and
allowees
The increase in the ordinary income free area and the assets threshold
amounts will apply to all income support payments.
It will affect people who are on reduced rates of pension or allowance, and
some who receive no pension or allowance, prior to 1 July 2000. These
changes will result in reduced rate pensioners and allowees receiving a rise in
their pensions or allowances in addition to that produced by the 4% increase.
Some people who have income and assets in excess of the cut off limits will
become eligible for income support payments from 1 July 2000.
Pension taper rates
Reduction in
pension taper
rate from 50¢
to 40¢ in the
dollar
The current taper rate for a pensioner with income over the threshold is 50¢ in
the dollar. That is, the pension is reduced by 50¢ for each dollar of income
over the free area.
The tax reform package reduces the taper to 40¢ for each dollar of income
over the free area. That is, pensioners will get to keep an extra 10¢ of pension
for every dollar of private income they receive above the income free area.
This change will affect people who are on reduced rates of pension, and some
who receive no pension, prior to 1 July 2000. It will result in reduced rate
pensioners receiving a rise in their pensions in addition to that produced by
the 4% increase in pensions.
Some people who have income in excess of the cut off limit will become
eligible for pension from 1 July 2000.
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Department of Health and Aged Care
Department of Family and Community Services
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4. Bonus Payments
Additional Information can be found in:
Fact Sheet 107(i), 109(i)
Questions and Answers: Section 13
Overview
In addition to changes to income support payments and assistance through the
tax system, the Government will provide a special payment to older
Australians – pensioners and self-funded retirees – who have income from
savings and investments. The special payment will be called a Savings
Bonus.
A Savings Bonus is a "one-off" untaxed payment to older Australians to help
maintain the value of their retirement savings and investments following the
introduction of the GST. Bonuses are being paid to compensate older
Australians for the loss of purchasing power of their savings and investments.
The tax reform package provides for two bonus payments to be made to older
Australians. These are:


the Aged Persons Savings Bonus; and
the Self Funded Retirees Supplementary Bonus.
They are paid at the rate of one dollar for each dollar of annual savings and
investment income up to a maximum of $1000 and $2000 per person
respectively (giving a maximum total of $3,000 for self-funded retirees). The
bonuses reduce when total taxable income exceeds $20,000, with no bonus
being payable when taxable income reaches $30,000 pa per person.
5. Assistance for families
Additional Information can be found in:
Fact Sheet 103(i)
Questions and Answers: Sections 14, 15, 16, 17 and 19
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Increasing the amount of assistance
Increased taxfree thresholds
The tax-free thresholds under the Family Tax Initiative will be doubled from
1 July 2000. This means that families will receive an increase in assistance of
at least $140 a year for each dependent child and, on top of this, at least $350
a year for single income families (including lone parents) with a child under
the age of 5.
Improving work incentives
Relaxed income
test
The current interaction between the various benefit income tests creates
disincentives to work for families with low and moderate income. Many face
an effective marginal tax rate of 85.5% or more if they increase their income.
To improve work incentives, the Family Allowance income test will be
substantially eased from July 2000. The level at which income testing begins
will be increased from an estimated $24,350 a year (for one child) to $28,200
a year. The rate reduction due to income over these limits will be reduced
from 50% to 30%.
These measures, combined with the tax cuts, will ensure that low income
working families have greater incentives to improve their circumstances. For
example, the effective marginal tax rate will drop from 85.5% to 61.5% over
a substantial range of income.
Simpler structure and delivery
Simplifying the
structure and
delivery of
family
assistance
The Government proposes to simplify the structure of assistance for families
from July 2000. The new structure will reduce the types of assistance for
families through the tax and social security systems from twelve to three.
Fact Sheet 103(i) shows the simplified structure.
Assistance for families, continued
Information prepared by:
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A
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Family Tax
Benefit, Part A
Family Tax Benefit, Part A (FTB (A)) will merge into one benefit the four
forms of assistance currently provided to help families with the costs of
raising children. This will have the same rate structure as the programs it
replaces, but with the extra $140 a year for each dependent child outlined
under Increasing the amount of assistance (above) and the relaxed income
test outlined under Improving work incentives (above).
Currently families lose their Family Allowance when their income exceeds a
certain threshold (around $66,000 for one child). Under the new FTB (A)
income test, entitlement would not cut out suddenly, but would gradually
taper away at the rate of 30 cents for each dollar of income above $73,000
(plus $3,000 a year for each child after the first).
The assets test will be abolished and the benefit will be indexed annually in
line with movements in the Consumer Price Index in the same way that
currently applies to Family Allowance.
Family Tax
Benefit, Part B
It is proposed that the six forms of assistance that currently provide additional
help for single income families (including sole parents) will be merged into a
Family Tax Benefit, Part B (FTB (B)). FTB (B) will have the same rate
structure as the current system (ie the level of assistance is higher where the
youngest child is less than 5 years of age), plus the extra $350 a year for
single income families with a child under 5 years outlined under Increasing
the amount of assistance (above). Families where the youngest child is aged
5-16 years will receive an additional $61 a year.
FTB (B) is not income tested for sole parents.
For couples, the three different income tests that currently apply on the nonworking partner’s income (under three different forms of assistance), will be
replaced with one test. This test will have an income free area of $1,616 a
year (projected July 2000 values) and a reduction of 30 cents for each dollar
of income over that. This will increase the cut-out point for assistance from
$6,090 a year to $10,500 (projected July 2000 values) for a family with a
child under 5 years and will greatly improve the work incentives for primary
carers (usually women). The income test that currently applies under the
Family Tax Initiative on the working partner’s or sole parent’s income from
$65,000 a year will be abolished.
The benefit will be indexed annually in line with movements in the Consumer
Price Index in the same way that currently applies to Family Allowance.
Assistance for families, continued
Information prepared by:
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Child Care
Benefit
a) Formal Care
It is proposed that the two forms of assistance available to help families with
the costs of formal child care will be merged into one benefit called Child
Care Benefit (CCB). This simplification will enable families to receive all
childcare assistance through one program and under one set of rules.
Under the new arrangements, there will be a maximum rate of assistance that
will taper down to a minimum rate. The minimum rate will not be based on
out of pocket expenses but on hours of care charged for by a child care
service. A single income test will apply. The rate will be reduced for income
over $28,200 (projected) a year by:



10% for one child in care;
15% and (above $66,000 projected) 25% for 2 children in care;
15% and (above $66,000 projected) 35% for 3 or more children in care.
The income test will not apply once the minimum rate of payment has been
reached. This means that there is no income cutoff for the minimum rate of
CCB. The minimum rate is projected to be $20.10 for one child for 50 hours
of care per week.
From 1 July 2000, there will be an increase of $7.50 in the weekly level of
maximum assistance for a family paying the average fee for 50 hours of care
per week for one child in a long day care centre (over and above the
maximum level of assistance at that time). The exact amount of assistance
payable at that time will depend on a number of factors such as indexation
between now and the implementation date of 1 July 2000. Additional
assistance will be available where there is more than one child in care.
b) Informal care
Parents who use informal child care for work related purposes will also
receive CCB. The maximum level of assistance for 50 hours of care in the
informal sector will be a projected $20.10 a week for each child in care.
Attachment A provides graphs and a table detailing how the CCB will work
for different incomes and for different numbers of children in care.
Continued on next page
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Assistance for families, continued
Delivery of
family
assistance
The Government proposes to simplify and integrate the delivery of services to
families. Currently, family assistance is delivered through a combination of
Centrelink, the Australian Tax Office and the Health Insurance Commission.
To help families more easily access their entitlements and to simplify the
range of rules currently used, it is proposed to set up a new Family Assistance
Office to deliver the new simplified set of family assistance programs.
The Family Assistance Office will be a separate entity co-located with
Centrelink, the Australian Tax Office and Medicare offices. It will enable the
vast majority of families to deal with just one agency and a simplified set of
rules. The primary carer in the family (usually the mother) can choose
whether to receive their assistance through payments to their financial
institution, reduction of their or their partner’s tax deductions or as an end-ofyear lump sum through the tax system.
6. Fringe Benefits Tax Reform
Additional Information can be found in:
Fact Sheet 151
Questions and Answers: Sections 1 and 18
FBT reforms
The Government is reforming Fringe Benefits Tax (FBT) to make the system
fairer for all taxpayers. There are four elements to the reforms: capping
concessional FBT treatment available to public benevolent institutions and
certain other non-profit bodies; reporting employees’ fringe benefit value on
their group certificates; extension of FBT to shareholders and trust
beneficiaries; and an FBT exemption for housing provided to mining industry
employees in remote areas. There are further details on the first two elements
below.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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FBT
concessional
treatment
capped
Capping concessional FBT treatment is part of the FBT reforms. An
exemption from FBT currently applies to benefits provided by public
benevolent institutions to their employees. A range of other non-profit
employers (eg schools, charities, trade unions and employer associations and
most non-profit clubs and associations) are entitled to a partial rebate of FBT.
While the majority of eligible employers do not abuse these concessions,
there is scope for the concessions to be exploited.
The concessional FBT treatment currently available will be capped at $17,000
of grossed-up taxable value per employee. This amount is broadly equivalent
to the taxable value of an average Australian car plus some additional minor
benefits. Any amount above this limit will be subject to the normal FBT
treatment.
Fringe benefits provided by religious institutions to religious practitioners
will not be affected by the measure.
Changes to
group
certificates will
improve income
tests
From the 1999-00 income year, employers will be required to report on group
certificates the grossed up taxable value of an employee’s fringe benefits that
are provided as part of a salary package, where the fringe benefits exceed
$1,000.
Employers are not currently required to identify or report fringe benefits for
individual employees. This makes it difficult to take those benefits into
account in determining entitlement to income-tested government assistance.
From 1 July 2000, fringe benefits that exceed $1,000 will be included as
income for assessing Family Tax Benefit, Child Care Benefit, Youth
Allowance and Child Support liabilities. Where they exceed $1,000, the nongrossed up amount of fringe benefits would be added to a customer’s income
(or parental income for Youth Allowance) to calculate their entitlement.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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A
new
tax
system
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COMMUNITY SECTOR
BRIEFING KIT
QUESTIONS AND
ANSWERS
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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Contents
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Charitable activities and religious services ........................................................................ 3
Fees for residents in nursing homes and hostels – effect of 4% pension increase............ 4
Fees for residents in nursing homes, hostels, retirement villages, Disability
Accommodation Support and similar services – effect of GST ...................................... 5
Carers – effect of GST – information for consumers ........................................................ 8
Community care services for older people and people with disabilities – effect of GST –
information for consumers ............................................................................................... 11
Community care services for older people and people with disabilities – effect of GST –
information for providers ................................................................................................. 13
Residential care services for older people and people with disabilities – effect of GST
on providers ..................................................................................................................... 15
Medical Aids and Appliances .......................................................................................... 17
Transport costs for people with disabilities ..................................................................... 18
Supported Accommodation Assistance Program............................................................. 19
Emergency Relief............................................................................................................. 19
Assistance for pensioners and allowees ........................................................................... 20
Assistance for older Australians ...................................................................................... 23
Increasing the amount of assistance for families ............................................................. 26
Improving incentives to work .......................................................................................... 27
Simplifying family assistance .......................................................................................... 28
Child Care Benefit ........................................................................................................... 31
Treatment of Fringe Benefits for family assistance ......................................................... 33
Family Assistance Office ................................................................................................. 34
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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Charitable activities and religious services
Additional Information can be found in:
Fact Sheet 151, 223(i)
Overview: Section 2
Q Will the Government provide any assistance to the charitable sector to help with
start-up costs of the GST?
A The Government will provide financial assistance of up to $500 million in total to
organisations which register for GST, including charitable organisations, to upgrade their
record keeping capacity through software and hardware, so the start-up costs of the GST
are minimised. The Small Business Consultative Committee will carry out consultations
to ensure that financial incentives are targeted and delivered in the most effective way.
Q Why is concessional Fringe Benefits Tax (FBT) treatment being capped?
A Capping concessional FBT treatment is part of the Government’s FBT reforms to make
the system fairer for all taxpayers.
An exemption from FBT currently applies to benefits provided by public
benevolent institutions to their employees. A range of other non-profit
employers (eg schools, charities, trade unions and employer associations and
most non-profit clubs and associations) are entitled to a partial rebate of FBT.
While the majority of eligible employers do not abuse these concessions, there is
scope for the concessions to be exploited.
The concessional FBT treatment currently available will be capped at $17,000 of
grossed-up taxable value per employee. This amount is broadly equivalent to the
taxable value of an average Australian car plus some additional minor benefits.
Any amount above this limit will be subject to the normal FBT treatment.
Fringe benefits provided by religious institutions to religious practitioners will
not be affected by the measure.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system

Fees for residents in nursing homes and hostels – effect
of 4% pension increase
Q Will nursing home and hostel fees rise due to the 4% pension increase in July 2000?
A No. There will be no fee increase due to the Government’s 4% pension increase in
July 2000. All nursing home and hostel residents will be fully and permanently protected
from any fee increase that this pension increase would otherwise have caused.
Q How will this protection be achieved?
A The protection from a fee increase in July 2000 will be achieved by reducing the
pensioner daily care fee from 85% of pension to 81.5% of pension. Imagine, for
example, the pension on 30 June 2000 is $384.50 per fortnight, then the daily care fee
will be approximately $23.30. After the 4% increase on 1 July 2000 the pension would
be around $400.00 per fortnight. Reducing the daily care fee to 81.5% of the pension will
ensure that the daily care fee remains at no more than the cash amount would have been
without the 4% increase (approximately $23.30 in this example).
Q Will non-pensioners’ fees be protected?
A Yes. The non-pensioner basic daily care fee will be linked to the pensioner basic daily
care fee, so all residents will be fully protected, including self-funded retirees.
Q Why 81.5%?
A 81.5 % is the amount, rounded down to the nearest half percentage point, required to
ensure that residents’ fees do not rise on 1 July 2000 when pension goes up by 4 per cent.
Q If the pension is going up by 4%, don’t fees need to go down to 81%?
A No. If 81% was used the daily care fee in the above example would be around $23.10
rather than remaining at approximately $23.30. 81.5% will ensure that pensioner
residents keep the full 4% pension increase. In practical terms the fee becomes 85c in
each 104c of the pension.
Q What will happen to fees with future pension increases?
A Pension indexation increases may occur in March and September each year, depending on
increases in the Consumer Price Index and Male Total Average Weekly Earnings.
Basic daily care fees may increase in March and September each year in line
with pension increases. However, because nursing home and hostel fees will be
only 81.5 % of pension from 1 July 2000, residents will always pay less than
they would have done if fees had remained at 85% of pension.
Q Where do I get more information?
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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A More information is available from the Government’s free aged care information line on
1800 500 853.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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Fees for residents in nursing homes, hostels, retirement
villages, disability accommodation support and similar
services – effect of GST
Q How will the GST affect fees for residents in nursing homes and hostels?
A Fees and accommodation charges for older Australians in residential care facilities such
as nursing homes and hostels will be GST-free. However some minor additional services
such as hairdressing and television hire may be subject to the GST.
Q Will nursing home and hostel fees and charges be GST-free?
A Yes. Care and accommodation in a nursing home or hostel for frail older people will be
GST-free. This includes meals and other services provided by the nursing home and
hostel as part of their care services. Some minor additional charges for services such as
hairdressing and television hire will be subject to GST.
Q What about accommodation bonds in hostels and accommodation charges in
nursing homes?
A Accommodation bonds and charges will not be subject to the GST.
Q What about income tested fees?
A Income tested fees will be GST-free.
Q What about additional charges, for instance for continence aids?
A Some facilities, such as hostels or other facilities providing lower level care, may charge
residents for aids and appliances such as continence aids. However, many of these aids
and appliances will be GST-free.
Q What about extra service places (also called exempt nursing homes)?
A Extra service fees will be GST-free. Providers of extra service or exempt places are
approved by the Commonwealth to charge higher fees for a superior standard of
accommodation and services.
Q What about flexible care services, such as Multi-Purpose Services in rural
communities and special Aboriginal services?
A Flexible care services funded under the Aged Care Act 1997, such as Multi-Purpose
Services, will be GST-free.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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Fees for residents in nursing homes, hostels, retirement villages,
disability accommodation support and similar services – effect of
GST, cont
Q What about residential facilities and other care services funded under other
Government programs?
A In residential facilities funded by the Commonwealth, State or Territory Governments,
care and accommodation services will be GST-free if they are provided to an aged or
disabled person as part of their care services. (See ‘Which services will be GST-free?’ at
the end of this information sheet.)
Q What about privately-run nursing homes, hostels and retirement villages?
A Most nursing homes and hostels for frail older people, including those run by private
providers, receive funding from the Commonwealth Government. Care and
accommodation services in these nursing homes and hostels will be GST-free.
In residential facilities that do not receive any Government funding, care and
accommodation services provided to residents receiving nursing services or daily
living activities assistance, will be GST-free.
Many retirement village fees will not be GST-free. However, care and
accommodation services provided to retirement village residents receiving
nursing services or daily living activities assistance will be GST-free.
Q What about services for younger people with a disability?
A Services for younger people with disabilities that are provided in qualifying residential
care facilities for older people (such as nursing homes and hostels) will be GST-free.
Accommodation, community support, community access or respite services for people
with disabilities that are of the kind defined in the Commonwealth/State Disability
Agreement 1998 (listed below) and are funded under the Disability Services Act 1986 or
under a complementary State or Territory law are GST-free:
 Accommodation Support: services that provide accommodation to people with
disabilities and services that provide the support needed to enable a person with a
disability to remain in their own home;
 Community Support: services that provide the support needed for a person with
disabilities to live in a non institutional setting;
 Community Access: services and programs designed to provide opportunities for
people with disabilities to gain and use their abilities to enjoy their full potential for
social independence; and
 Respite Care: services that specifically provide a short term and time limited break for
families and other voluntary care givers of people with disabilities to assist in
supporting and maintaining the primary care-giving relationship, whilst providing a
positive experience for the person with disabilities.
Any community care services for people with a disability funded under the
Home and Community Care Act 1985 or the Aged Care Act 1997 will also be
GST-free.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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Fees for residents in nursing homes, hostels, retirement villages,
disability accommodation support and similar services – effect of
GST, cont
Q Where do I get more information?
A For aged care issues, ring the Government’s free aged care information line on
1800 500 853. For disability services, ring the free information line on 1800 020 103.
Which residential care facilities will not have to charge GST?
Facilities in the following categories will not have to charge GST on their fees:
 Facilities that receive funding under the Aged Care Act 1997.
 Facilities funded by the Commonwealth, State or Territory Governments, where the
Minister for Aged Care determines (in writing) that the care and accommodation services
of such a facility will be GST-free.
 Facilities where services offered include help with daily living activities assistance or
nursing services and the Minister for Aged Care determines that the care and
accommodation services of such a facility will be GST-free.
 Accommodation, community support, community access or respite services for people
with disabilities that are of the kind defined in the Commonwealth/State Disability
Agreement 1998 and are funded under the Disability Services Act 1986 or under a
complementary State or Territory law.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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Carers – effect of GST – information for consumers
Q How will the GST affect services that are important to carers?
A Most of the services that are important to carers will be GST-free. These include Home
and Community Care and disability community support services – for example, home
nursing, personal care, home help, delivered meals, day care, home maintenance and
modification, and transport services.
Q Which community care services will be GST-free?
A Home and Community Care services, Community Aged Care Packages and Extended
Aged Care at Home Packages will be GST-free. These services are provided through
government programs to older people and younger people with disabilities so that they
can stay in their own homes instead of having to move into a nursing home or hostel.
Similarly, disability community support services provided under State government
legislation will be GST-free.
This means there will be no GST on those community care services. See ‘Which
services will be GST-free?’ at the end of this information sheet.
Q Will people have to pay more for Community Aged Care Packages?
A No. Charges for Community Aged Care Packages will be GST-free. These services
provide the same sort of care as residential aged care (which is also GST-free).
Q We pay for my husband to receive some private health services in our own home.
Will these services be GST-free?
A Yes. Common health services such as nursing, podiatry, physiotherapy and occupational
therapy will all be GST-free. In addition, where people use private personal care services
for help with daily living activities assistance such as bathing, maintaining continence,
eating, dressing, mobility and communication, these will be GST-free.
Q I spend a lot of money on continence pads. Will I need to pay GST on them?
A No. Continence aids and devices will be GST-free.
Q My local Carer Resource Centre provides me with free information and advice.
Will the GST mean that I have to pay for this assistance?
A No. Carer Resource Centres do not charge for their services and the GST will not affect
this.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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Carers – effect of GST – information for consumers, cont.
Q What about respite care? Respite is very important to enable me to keep caring.
How will the GST affect the cost of respite care services?
A Respite care can be provided in residential settings (nursing homes or hostels), or in
community settings. Community based respite may be provided in the care recipient’s
home or the carer’s home, in community centres including day care centres, and in other
flexible arrangements.
Respite care provided under the following arrangements will be GST-free:
 In government funded nursing homes and hostels.
 Funded under the Home and Community Care Act 1985 (including in-home respite
and day care centres).
 Where the Minister for Aged Care determines in writing that government funded
services (such as respite services) are of a similar kind to HACC funded services.
 Respite care services for people with disabilities that are of the kind defined in the
Commonwealth/State Disability Agreement 1998 and are funded under the Disability
Services Act 1986 or under a complementary State or Territory law.
Q I receive the Domiciliary Nursing Care Benefit because I am caring at home for my
father, who needs a high level of care. Will my situation be affected by changes to
the tax system?
A To ensure that all Australians benefit from the new tax system, a range of government
assistance payments will be increased by 4% from July 2000. This includes the
Domiciliary Nursing Care Benefit (to be called Carer Allowance from 1 July 1999).
Q I receive the Child Disability Allowance because I am caring at home for my child
with disabilities, who needs a high level of care. Will my situation be affected by
changes to the tax system?
A To ensure that all Australians benefit from the new tax system, a range of government
assistance payments will be increased by 4% from July 2000. This includes the Child
Disability Allowance (to be called Carer Allowance from 1 July 1999).
Q Will fees for services under the Extended Aged Care at Home pilot program be
GST-free?
A Yes. Fees will be GST-free if you are caring for a person at home who is receiving an
Extended Aged Care at Home Package under a special pilot program, funded under the
Aged Care Act 1997, which provides nursing home level care at home.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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Carers – effect of GST – information for consumers, cont.
Q Where do I get more information?
A For aged care issues, ring the Government’s free aged care information line on
1800 500 853. For disability services, ring the free information line on 1800 020 103.
Which services will be GST-free?
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Home and community care services funded under the Home and Community Care Act
1985.
Community Aged Care Packages and Extended Aged Care at Home Packages funded
under the Aged Care Act 1997.
Personal care services providing daily living activities assistance as set under the Quality
of Care Principles.
Similar services funded by the Commonwealth, State or Territory Governments, where
the Minister for Aged Care determines in writing that the services are of a similar kind to
services funded under the Home and Community Care Act 1985.
Accommodation, community support, community access or respite services for people
with disabilities that are of the kind defined in the Commonwealth/State Disability
Agreement 1998 and are funded under the Disability Services Act 1986 or under a
complementary State or Territory law.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system

Community care services for older people and people with
disabilities – effect of GST – information for consumers
Q How will the GST apply to community care services for older people and people
with disabilities?
A Home and Community Care services are provided to support older Australians and people
with disabilities so that they can stay in their own homes instead of having to move into a
nursing home or hostel. These services will generally be GST-free. They include
services such as home nursing, personal care, home help, delivered meals, day care, home
maintenance and modification, and transport services. Similarly, accommodation
support, community support and community access services for people with disabilities
will be GST-free.
Q Will a person who receives community care at home have to pay GST?
A Any person who uses:
 Home and Community Care services;
 Community Aged Care Packages;
 Extended Aged Care at Home Packages; or
 other services included under ‘Which services will be GST-free?’ at the end of this
information sheet
will not pay GST on any fees or charges attached to these services.
Q Do I pay GST if my podiatrist visits me at home?
A Many people living in the community also use the services of private nurses, podiatrists,
physiotherapists. These services will be GST-free. A full list of GST-free commonly
used health services is set out in Fact Sheets 231(i) and 231a(ii).
Q What about other personal care services I receive at home?
A Where an older person or a person with a disability uses private personal care services for
daily living activities assistance (as defined under the Quality of Care Principles), such as
bathing, maintaining continence, eating, dressing, mobility and communication, these
services will be GST-free.
Q Will I have to pay more for the Community Aged Care Package which I have been
receiving so that I can stay at home instead of moving to a hostel?
A No. Charges for Community Aged Care Packages will be GST-free. These services
provide the same sort of care as residential aged care (which is also GST-free).
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system

Community care services for older people and people with
disabilities – effect of GST – information for consumers, cont.
Q What about respite care? Respite is very important for my carer and me. How will
the GST affect the cost of these services?
A Respite care can be provided in residential settings (nursing homes or hostels), or in
community settings. Community based respite may be provided in the care recipient’s
home or the carer’s home, in community centres including day care centres, and in other
flexible arrangements.
Respite provided under the following arrangements will be GST-free:
 In qualifying government funded nursing homes and hostels.
 Funded under the Home and Community Care Act 1985 (including in-home respite
and day care centres).
 Where the Minister for Aged Care determines in writing that government funded
services (such as respite services) are of a similar kind to HACC funded services.
 Respite care services etc for people with disabilities are of the kind defined in the
Commonwealth/State Disability Agreement 1998 and are funded under the Disability
Services Act 1986 or under a complementary State or Territory law.
Q Will I pay GST on the fees I pay for care provided under the Extended Aged Care at
Home pilot program?
A No. These will be GST-free if you are receiving an Extended Aged Care at Home
Package under a special pilot program, funded under the Aged Care Act 1997 which
provides nursing home level care at home.
Q Where do I get more information?
A For aged care issues, ring the Government’s free aged care information line on
1800 500 853. For disability services, ring the free information line on 1800 020 103.
Which services will be GST-free?





Home and community care services funded under the Home and Community Care Act
1985. These services include home help, home nursing, personal care, delivered meals,
respite care, day care, home maintenance and modification, and transport services.
Community Aged Care Packages and Extended Aged Care at Home Packages funded
under the Aged Care Act 1997. These services provide case-managed care to older
people living at home who have been assessed as requiring residential care.
Personal care services providing daily living activities assistance as set under the Quality
of Care Principles.
Services funded by the Commonwealth, State or Territory, where the Minister for Aged
Care determines (in writing) that the services are of a similar kind to services funded
under the Home and Community Care Act 1985.
Accommodation, community support, community access or respite services for people
with disabilities which are of the kind defined in the Commonwealth/State Disability
Agreement 1998 and are funded under the Disability Services Act 1986 or under a
complementary State or Territory law.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system

Community care services for older people and people with
disabilities – effect of GST – information for providers
Q Will community care services have to charge GST on client fees or charges?
A No, providing the community care service is a GST-free service (see ‘Which services will
be GST-free?’ at the end of this information sheet).
Q What about private health services provided in people’s homes?
A Privately provided health services in people’s own homes will be GST-free. These
include common health services such as nursing, podiatry, physiotherapy and
occupational therapy. [A comprehensive list of these services is provided in Section 3810 of A New Tax System (Goods and Services Tax) Bill 1998.]
Personal care services providing daily living activities assistance (as defined
under the Quality of Care Principles) such as bathing, maintaining continence,
eating, dressing, mobility and communication will be GST-free.
Q Will services have to impose GST on charges for respite care?
A Respite care can be provided in residential settings (nursing homes or hostels), or in
community settings. Community based respite may be provided in the care recipient’s
home or the carer’s home, in community centres including day care centres, and in other
flexible arrangements.
Respite provided under the following arrangements will be GST-free:
 In qualifying government funded nursing homes and hostels.
 Funded under the Home and Community Care Act 1985 (including in-home respite
and day care centres).
 Where the Minister for Aged Care determines (in writing) that government funded
services (such as respite services) are of a similar kind to HACC funded services.
 Respite care services for people with disabilities that are of the kind defined in the
Commonwealth/State Disability Agreement 1998 and are funded under the Disability
Services Act 1986 or under a complementary State or Territory law.
Q Will service providers have to add GST to charges for medical aids and appliances
such as continence aids and wheelchairs?
No. Continence aids and wheelchairs are examples of GST-free items. A large
number of medical aids and appliances will be GST-free where they are
specifically designed for people with an illness or disability, and not widely used
by people without an illness or disability. [A comprehensive list of these aids
and appliances is provided in Schedule 1 to A New Tax System (Goods and
Services Tax) Bill 1998.]
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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Community care services for older people and people with
disabilities – effect of GST – information for providers, cont.
Q Will community care services effectively bear GST on their input costs?
A No. As businesses, providers will be able to claim an input tax credit for any GST paid
on the inputs to their business.
Providers will need to register for GST purposes to be able to claim input tax
credits.
Q Does this apply to all community care services, including private providers?
A Yes. All businesses that register can claim an input tax credit for any GST paid on the
inputs to their business.
Q How will community care services run by charities be treated?
A They will be treated in exactly the same way as other community care services.
If they register for GST purposes they will be able to claim an input tax credit
for any GST paid on the inputs to their business.
Q Where do I get more information?
A More information is available from the Government’s free aged care information line on
1800 500 853.
Which services will be GST-free?





Home and community care services funded under the Home and Community Care Act
1985.
Community Aged Care Packages and Extended Aged Care at Home Packages funded
under the Aged Care Act 1997.
Personal care services providing daily living activities assistance as set under the Quality
of Care Principles.
Services funded by the Commonwealth, State or Territory Governments, where the
Minister for Aged Care determines (in writing) that the services are of a similar kind to
services funded under the Home and Community Care Act 1985.
Accommodation, community support, community access or respite services for people
with disabilities that are of the kind defined in the Commonwealth/State Disability
Agreement 1998 and are funded under the Disability Services Act 1986 or under a
complementary State or Territory law.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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Residential care services for older people and people with
disabilities – effect of GST on providers
Q Will aged care facilities (nursing homes, hostels) effectively bear GST on input
costs?
A No. Providers will be able to claim an input tax credit for any GST paid on their inputs if
they are registered for GST purposes. All providers can register including charitable
organisations.
Providers will benefit from this arrangement as, unlike the sales tax which they
currently pay on, or is imbedded in, many of their inputs, any GST paid on
inputs will be fully refundable.
Q Does this apply to all aged care facilities, for example, retirement villages?
A Yes. All businesses which register can claim an input tax credit for any GST paid on the
inputs to their businesses. However, where retirement villages provide rental
accommodation they will not be entitled to input tax credits for purchases related to that
accommodation. These rents will not be subject to GST.
Q How will aged care facilities (nursing homes, hostels) run by charities be treated?
A Aged care facilities run by charities will not be financially disadvantaged by the
introduction of the GST. They will be treated in exactly the same way as other aged care
facilities.
If they register for GST purposes they will be able to claim an input tax credit
for any GST paid on the inputs to their business.
The sales tax exemption that such facilities currently have is replaced by the
ability of businesses to claim an input tax credit for any GST paid on the inputs
to their business.
Facilities run by charities will also benefit from the removal of the embedded
sales tax that is present in many of their current inputs.
Q How will accommodation support services for younger people with disabilities be
treated?
A Accommodation, community support, community access or respite services for people
with disabilities that are of the kind defined in the Commonwealth/State Disability
Agreement 1998 and are funded under the Disability Services Act 1986 or under a
complementary State or Territory law will be treated the same as aged care services.
Q Will providers be able to increase fees due to the 4% pension increase in July 2000?
A No. All nursing home and hostel residents will be fully and permanently protected from
any fee increase that would have arisen due to the 4% pension increase in July 2000. Fee
increases in accommodation for people with disabilities are a matter for State
governments.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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Residential care services for older people and people with
disabilities – effect of GST on providers, cont.
Q What happens with fees in the future?
A Pension indexation increases may occur in March and September each year, depending on
increases in the Consumer Price Index and Male Total Average Weekly Earnings. Basic
daily care fees may increase in March and September each year in line with pension
increases. Fee increases in accommodation support for people with disabilities are a
matter for State governments.
Q Will providers of accommodation for people with disabilities be able to increase fees
due to the 4% pension increase in July 2000 or thereafter?
A Fee increases in accommodation support for people with disabilities are a matter for State
governments.
Q Will aged care facilities (nursing homes, hostels) and disability accommodation
services have to charge GST on their fees?
A No. The legislation currently before Parliament clearly sets out that care and
accommodation in a qualifying aged care facility for frail older people and qualifying
accommodation services for people with disabilities are GST-free. This includes meals
and other services provided by the nursing home and hostel or disability accommodation
services as part of their care services. (See ‘Which residential facilities will not have to
charge GST’ at the end of this information sheet.) Some minor additional charges for
services such as hairdressing and television hire may be subject to GST.
Q Will facilities have to charge GST on respite services?
A No. For qualifying residential care facilities, respite care will be GST-free.
Q Where do I get more information?
A For aged care issues, ring the Government’s free aged care information line on
1800 500 853. For disability services, ring the free information line on 1800 020 103.
Which residential care facilities will not have to charge GST?
Facilities in the following categories will not have to charge GST on their fees:
 Facilities that receive funding under the Aged Care Act 1997.
 Facilities funded by the Commonwealth, State or Territory Governments, where the
Minister for Aged Care determines (in writing) that the care and accommodation services
of such a facility will be GST-free.
 In non-Government funded facilities, where services are provided to residents receiving
daily living activities assistance or nursing services and the Minister for Aged Care
determines that the care and accommodation services of such a facility are of a sufficient
standard, they will be GST-free.
 Accommodation, community support, community access or respite services for people
with disabilities that are of the kind defined in the Commonwealth/State Disability
Agreement 1998 and are funded under the Disability Services Act 1986 or under a
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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complementary State or Territory law.
Medical Aids and Appliances
Additional Information can be found in:
Fact Sheet 231a(i)
Q Will aids and appliances for people with disabilities be GST-free?
Q How do people know whether a particular item is GST-free or not?
Q How do people obtain an item GST-free? Do they need to obtain special
certificates?
Q What about equipment that is necessary for people with disabilities but is not on the
list?
A A large number of aids and appliances for people with disabilities and illnesses will be
GST-free. See the Medical Aids and Appliances Fact Sheet, 223a(i) for a list of aids and
appliances that are GST-free. For example, for a person suffering incontinence, any
device that falls under the general heading of “urine/faecal drainage/collection device”,
will be GST-free. If an aid or appliance does not appear on the list, that item is not GSTfree.
Providers will be responsible for determining whether an item can be classified
under one of the general headings on the GST-free list and whether the item was
specifically designed for use by people with an illness or disability and is not
widely used by people without an illness or disability.
The Australian Taxation Office will ensure appropriate compliance with the
legislation by all parties. For further information, contact the Australian
Taxation Office.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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Transport costs for people with disabilities
Q How will the GST affect the price of motor vehicles purchased by people with
disabilities?
A Cars in general will fall in price as a result of the change from the wholesale sales tax to
the GST.
Motor vehicles purchased by some people with disabilities will be GST-free
where the car is to be used to provide transport to or from gainful employment.
This exemption will be available for people who have lost the use of one or more
limbs resulting in an inability to use public transport.
Q Will Mobility Allowance change as a result of the introduction of the GST?
A Mobility Allowance is provided to assist people with disabilities who are in employment,
vocational training, a combination of work and training, or voluntary work who are
unable to use public transport without substantial assistance.
In line with other payments, Mobility Allowance will rise by 4% as part of the
Government’s commitment to increase rates of assistance more than the impact
of tax reform on prices as measured by the CPI.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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Supported Accommodation Assistance Program (SAAP)
Additional Information can be found in:
Fact Sheet 223(i), 234
Q How will the GST affect SAAP agencies?
A Where SAAP agencies are charitable, their non-commercial services will be GST-free
and agencies will be able to claim input tax credits on acquisitions made for noncommercial services (eg rent, food, electricity). There will be minimal effect on SAAP
agencies.
Q Will donations to SAAP agencies be subject to the GST?
No, because they are not payments in return for goods and services.
Emergency Relief
Additional Information can be found in:
Fact Sheet 223(i), 234
Q How will the GST affect Emergency Relief agencies?
A Emergency Relief agencies which register for GST purposes will be able to claim an
input tax credit for any GST paid on inputs.
The Government will provide financial assistance of up to $500 million in total
to organisations which register for GST, including charitable organisations, to
upgrade their record keeping capacity through software and hardware, so the
start-up costs of the GST are minimised. The Small Business Consultative
Committee will carry out consultations to ensure that financial incentives are
targeted and delivered in the most effective way.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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Assistance for pensioners and allowees
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Q What assistance will there be for people with low income who do not pay tax?
A A range of measures will assist social security and other low income groups, including:
Increased pensions and allowances
 From 1 July 2000, the maximum rate of Commonwealth income support payments to
social security and veterans’ pensioners, other social security recipients and students
will increase by 4%.
Means test changes
Means tests for pensions, allowances and parenting payment single will change
from 1 July 2000.
 The amount of income and the amount of assets a person can receive without
affecting their pension or allowance (ie the free areas) will increase by 2.5%.
 The amount that the pension (including parenting payment single) is reduced for
every dollar of private income over the free area will decrease from the current
50 cents to 40 cents. This is referred to as the ‘taper’ rate.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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Family assistance
Changes to family assistance will benefit families with children. [See later
sections on increasing the amount of assistance for families and improving work
incentives.]
Q Which payments will go up by 4%?
A A list of the payments to be increased is attached.
Q Does the 4% increase offset the effect on prices of the GST?
A The 4% increase provides:
 A 2.5% increase in the rates to offset the anticipated first year effect of the tax reform
package (including the GST) on the Consumer Price Index (CPI); and
 A further 1.5% increase over and above this.
The 2.5% increase represents an advance of the anticipated increases in rates that
would have occurred at a later date under the automatic indexation provisions for
most pension and allowance rates. Under these provisions, such increases would
occur automatically as the 2.5% impact of the GST on prices flow through to the
CPI and hence, onto most pension and allowance rates.
To prevent double compensation, the automatic indexation increases after 1 July
2000 will be adjusted such that the overall effect ensures that pension and
allowance rates are fully compensated for the effect of the GST on prices plus
the extra 1.5% increase in rates above the CPI.
Assistance for pensioners and allowees, cont
Q Does the ‘avoidance of double compensation’ apply to non-indexed payments or to
free areas?
A No. It only needs to apply to indexed payments.
Q What happens if the impact of tax reform on the CPI is greater than 2.5% in the
first year?
A It doesn’t matter. Pensioners and allowees will still get the increases through the
automatic indexation arrangements. This will mean they still get a 1.5% real increase,
regardless of the CPI impact.
Q How do I get these increased benefits?
A The changes to the pensions and other income support payments will happen
automatically from 1 July 2000. If people receive a pension or other income support
payment at that time, their first payment after 1 July 2000 will reflect the changes.
People who are not receiving a payment as 1 July 2000 approaches, and think
they may become eligible, should contact Centrelink or the Department of
Veterans’ Affairs which will have staff who can give them more information
and/or accept a claim.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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Assistance for pensioners and allowees, cont
Attachment
PAYMENTS TO BE INCREASED BY 4 % WITH TAX REFORM
Age pension
Age service pension
Disability support pension
Invalidity service pension
Wife pension
Partner service pension
Widow Class B pension
Carer service pension
Carer payment
Veteran’s income support supplement
Mature age allowance
Veterans’ dependents pension
Mature age partner allowance
Adequate means of support pension
Sickness allowance
Disability pension
Newstart allowance
War widows/widowers pension
Youth allowance
Veterans' bereavement payment
Partner allowance
Veterans' funeral benefit
Bereavement allowance
Veterans’ orphan pension
Special benefit
Veterans’ allowances
Parenting payment
Veterans’ children education scheme
Widow allowance
Abstudy
Austudy payment
Assistance for Isolated Children
Double orphan pension
New Enterprise Incentive Scheme
Maternity allowance
Exceptional circumstances relief payment
Maternity immunisation allowance
Living Away From Home Allowance
Mobility allowance
Australian Post Graduate Awards
Remote area allowance
Australian Post Graduate Awards (Industry)
Telephone allowance
Drought Relief Payment
Rent assistance
Education entry payment
Employment entry payment
Pharmaceutical allowance
Pensioner education supplement
Approved program of work supplement
Carer allowance (to be introduced 1 July 1999, replacing Child Disability Allowance and
Domiciliary Nursing Care Benefit)
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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Assistance for older Australians
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Q What help is the Government providing for older Australians?
A In addition to the changes to income support payments, there are other changes to help
older Australians. Some of these include:
 The pensioner tax rebate and the low income aged persons tax rebate will be
increased. This means that more low income pensioners and self-funded retirees
respectively, will remain outside the income tax system or pay less tax.
 People who have sufficient income to be within the income tax system will benefit
from the income tax cuts.
 Excess imputation credits will be refunded to Australian residents, who previously, if
they did not have a tax liability, may have derived no benefit from those credits.
 One-off Savings Bonuses (see below).
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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Q How is the Government going to help maintain the value of the retirement savings of
older Australians following the introduction of the GST?
A In addition to changes to income support payments and assistance through the tax system,
the Government will provide a special payment to older Australians – pensioners and
self-funded retirees – who have income from savings and investments. The special
payment will be called a Savings Bonus.
Q What is a savings bonus?
A A savings bonus is a "one-off" untaxed payment to older Australians to help maintain the
value of their retirement savings and investments following the introduction of the GST.
They are being paid to compensate older Australians for the loss of purchasing power of
their savings and investments.
Two "one-off" untaxed bonuses will be paid to older Australians. The two
Savings Bonuses are:
 Aged Persons Savings Bonus of up to $1,000; and
 Self Funded Retirees Supplementary Bonus of up to an additional $2,000.
Q Who can get an Aged Persons Savings Bonus?
A People who:
 are aged 60 or more on 1 July 2000;
 have income from savings and investments in either 1998/99 or 1999/2000;
 have total income under $30,000 in 1998/99 or 1999/2000; and
 are Australian residents on 1 July 2000 (under the Social Security Act).
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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Assistance for older Australians, cont
Q Who can get a Self Funded Retirees Supplementary Bonus?
A People who:





can get an Aged Persons Savings Bonus;
are Australian residents of age pension age (males: 65 years and females 61.5) on
1/7/2000;
have not received income support from 1/4/00 to 1/7/00;
have income from savings & investments in either 1998/99 or 1999/00; &
have total income under $30,000 in 1998/99 or 1999/00.
Q When are the bonuses available?
A The bonuses will be paid after 1 July 2000 when a person:
 lodges a tax return; or
 advises Centrelink or DVA they will not be lodging a tax return.
Q How much are the Savings Bonuses?
A The Aged Person’s Savings Bonus will be a maximum of $1,000 per person. The Self
Funded Retiree’s Supplementary Bonus will be up to an additional $2,000 per person.
Both bonuses are paid on the basis of a dollar for each dollar of savings and
investment income and are means tested. The bonuses will be proportionally
reduced as income increases over $20,000 up to the cut out point of $30,000 pa
per person.
Examples
 An age pensioner who has $1,000 a year of interest income and a total retirement
income of $15,000 a year would receive a $1,000 Aged Persons Savings Bonus.
 A person aged 61 with $1,300 of savings and investment income and an overall
income of $24,000 would be paid a $600 Aged Persons Savings Bonus. That is, the
maximum of $1000 less 4/10ths (for the $4,000 income over $20,000).
 A 68 year old self funded retiree with $3,500 a year of investment income and total
income of $25,000 a year will receive a $1,500 payment. That is, the maximum of
$3,000 ($1,000 Aged Persons Savings Bonus plus $2,000 Self Funded Retirees
Supplementary Bonus) less 5/10ths (for the $5,000 income over $20,000).
 A female married age pensioner aged 63 has savings and investment income of
$1,100, and no other private income. She would receive the $1,000 Aged Persons
Savings Bonus. Her 64 year old husband, who is not on income support, has income
of $17,000 from part-time consultancy work and $3,000 from returns on his
investments. He can receive a separate Aged Person Savings Bonus of $1,000.
 A husband aged 66 and wife aged 60 are employed and neither receives income
support. The husband has a taxable income of $27,000, including $2,000 investment
income. He is eligible for an Aged Persons Savings Bonus of $300 ($1,000 less
7/10ths) and a Self-Funded Retirees Supplementary Bonus of $300 ($1,000 less
7/10ths), making a total of $600. The wife has a taxable income of $21,000,
including $1,000 investment income. She is eligible for an Aged Persons’ Savings
Bonus of $900.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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Assistance for older Australians, cont
Q How can people get a bonus payment?
A People can be paid a bonus by dealing with their normal Government agency:

People who must lodge a tax return will be paid when the Australian Taxation Office
(ATO) assesses their tax return.

People who do not need to lodge a tax return and receive a payment from Centrelink
or the Department of Veterans’ Affairs (DVA) have a choice (Centrelink and DVA
will contact their customers around 1 July 2000). They can elect to:
- lodge a tax return and be paid by the ATO; or
- be paid by the agency they receive a payment from.
 People who do not deal with either agency can choose to either lodge a tax return for
1999/2000 or claim through Centrelink.
Q How will savings and investment income for the bonuses be assessed?
Savings and investment income for people who are assessed by Centrelink and
DVA will be assessed using modified deeming rules. These rules will use the
higher deeming rate (currently 5%).
Their overall retirement income will be assessed using definitions similar to
those used for pension assessment.
People who have to, or who choose to, lodge a tax return, will have their income
assessed under taxation rules.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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Increasing the amount of assistance for families
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Q How much will levels of assistance to families increase? Will the increase offset the
additional costs families face, due to the Goods and Services Tax on items such as
food and clothing?
A In conjunction with the personal income tax cuts, these family assistance reforms will
provide significant extra assistance to families. The increase in the tax-free thresholds
under the Family Tax Initiative will be doubled from 1 July 2000. This means that
families will receive an increase in assistance of at least $140 a year for each dependent
child and, on top of this, at least $350 a year for single income families with a child under
the age of 5.
This assistance is in recognition of the extra costs involved in raising children
and will more than offset the expected increase in prices resulting from the
introduction of the Goods and Services Tax.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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Changes in assistance levels can be found in Fact Sheet 103(i), "How will the
new tax system benefit families?".
Q Why is additional assistance provided to single income families with children under
5 years?
A Additional assistance is provided to single income families with a child or children under
five to help these families choose a balance of child care and work responsibilities
appropriate to them while their children are very young.
Single income families (including sole parents) with a young child can receive
an extra $350 a year in assistance. Two income families with a young child who
use child care can benefit from increased assistance with their child care costs.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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Improving incentives to work
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Q What changes are being made to improve the incentives for families to undertake
paid work?
A From July 2000, the income test for Family Allowance (which will form part of the new
Family Tax Benefit Part A) will be eased by:
 increasing the level of income at which it begins to be income tested from an
estimated $24,350 a year for one child to $28,200 a year; and
 reducing the income test taper rate from 50 per cent to 30 per cent.
These changes will help reduce the disincentives for low income working
families to improve their circumstances. The effective marginal tax rate for
many low income families will be reduced from 85.5 per cent to 61.5 per cent,
over a substantial range of income. The changes will also ensure that
unemployed families do not suffer a sudden drop in income when they leave
income support, thereby improving their incentives to obtain a full-time job.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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Simplifying family assistance
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Q What are Family Tax Benefit Parts A and B and Child Care Benefit?
A Family Tax Benefit Part A (FTB (A)) will be a payment to help families with the cost of
raising children. It replaces Family Allowance, Family Tax Payment Part A and Family
Tax Assistance Part A.
FTB (A) will have a relaxed income test and a $140 a year rate increase. The
sudden death income tests for minimum Family Allowance, Family Tax
Payment and Family Tax Assistance will be replaced with a single income
threshold of $73,000 a year (plus $3,000 for each child after the first) and a taper
rate of 30 per cent. The assets test that applies to Family Allowance will be
abolished.
Family Tax Benefit Part B (FTB (B)) will provide additional assistance to
single income families. It replaces Basic Parenting Payment, Guardian
Allowance, Family Tax Payment Part B, Family Tax Assistance Part B, the
Dependent Spouse Rebate (with children) and the Sole Parent Rebate.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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FTB (B) will provide additional assistance of $350 a year for single income
families with a child under 5 years. When the youngest child is aged between 5
and 16 years, families will receive an additional $61 a year. The current three
income tests will be replaced with a single test with a $1,616 a year free area and
a 30 per cent taper. The income test which currently applies to the working
partner’s income for Family Tax Payment/ Family Tax Assistance will be
abolished.
Child Care Benefit will assist families with their child care costs and replaces
the Child Care Cash Rebate and Child Care Assistance.
It will be subject to a single income test with a family income threshold of
$28,200 for maximum assistance and different taper rates depending on the
number of children in care and income. Assistance will be maintained for higher
income families.
Q Will Rent Assistance form part of Family Tax Benefit?
A Although not yet finalised, it is envisaged that Rent Assistance will be linked to Family
Tax Benefit Part A. Any Rent Assistance entitlement will be reduced by the Family Tax
Benefit Part A income test as currently happens with Family Allowance. Rent Assistance
will only be able to be accessed through the fortnightly payment system.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
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Simplifying family assistance, cont
Q Will people be able to receive Maternity Allowance and Maternity Immunisation
Allowance through the tax system?
A Maternity Allowance (MAT) is currently paid as a one-off lump sum payment at around
the time of birth of a child. Maternity Immunisation Allowance (MIA) is payable when
the child is aged between 18 months and two years provided they have age-appropriate
immunisation or a valid exemption. It is proposed that MAT and MIA will only be
payable through the Family Assistance Office/Centrelink system to ensure that they
continue to meet their objectives of assisting families with the extra costs incurred at the
time of birth and encouraging parents to have their children fully immunised.
Q How will Family Tax Benefit be claimed?
A The primary carer of the children will be able to choose to receive their Family Tax
Benefit in one of three ways:
 through fortnightly payments to the primary carer;
 as an end of year lump sum through the taxation system (either through the primary
carer’s tax return or their partner’s tax return); or
 as reduced tax instalment deductions from the primary carer’s or their partner’s pay.
Further details about claim procedures are being finalised.
Q Can all families claim their family assistance through the tax system?
A Generally, families will be able to choose whether they wish to receive their family
assistance in the form of fortnightly payments or through the tax system. However, there
are some exceptions.
Recipients of a Social Security or Veterans’ Affairs income support payment
will continue to receive their family assistance fortnightly from the Family
Assistance Office/Centrelink system. This ensures these families have access to
assistance when they most need it and that they can continue to receive all their
assistance from the one place. Rent Assistance, Maternity Allowance, Maternity
Immunisation Allowance payments will only be available through the Family
Assistance Office/Centrelink system.
Q How can we ensure that the primary carer is able to exercise choice as to how they
wish to receive their Family Tax Benefit?
A An important aspect of the Government’s family assistance reforms is that the primary
carer is free to choose how they receive their assistance. Primary carers will be
encouraged to contact the Family Assistance Office which will provide information on
the alternative options and their implications to enable them to make an informed choice
about the option which best suits their needs.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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Simplifying family assistance, cont
Q What will happen to families receiving family assistance at 1 July 2000?
A Transitional arrangements are yet to be finalised. However, it is envisaged that families
receiving family assistance at the time of the change will be reviewed prior to 1 July 2000
to collect information to assess their entitlement and identify their preferred method of
delivery for the payments. Existing customers will not need to make a new claim.
Q How will child support be treated for the purposes of Family Tax Benefit?
A Family Tax Benefit Part A will be subject to the maintenance income test similar to that
currently applying to the more than minimum rate of Family Allowance.
Customers who pay child support will be able to deduct 50 per cent of the value
of those payments from their assessable income.
Q How will the additional costs of lone parenthood be recognised?
A Family Tax Benefit Part B recognises the additional costs for single income families
(including lone parents) of providing for dependents because only one tax free threshold
is available. There will be no income test on Family Tax Benefit Part B for lone parents.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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Child Care Benefit
Q What is the maximum amount of assistance available under the new Child Care
Benefit?
A For a family paying the average fee for one child for 50 hours of care per week in a long
day care centre, there will be an increase in the weekly level of maximum assistance of
$7.50 from 1 July 2000 (over and above the maximum level of assistance at that time).
The exact amount of assistance payable at that time will depend on a number of factors
such as indexation between now and the implementation date of 1 July 2000.
Q What are the amounts of assistance where there are two or three children in care?
A Where there are 2 children in care, the maximum benefit per child would be $5.50 per
child more than the maximum benefit for one child. Where there are three children in
care, the maximum benefit would be $10.65 per child higher than for one child in care.
Q How will informal care operate under the new system?
A Parents who use informal care for work related purposes will receive Child Care Benefit.
The level of assistance will be a projected $20.10 a week per child for 50 hours of care.
Q How will the Child Care Benefit fit in with other types of family assistance?
A The Child Care Benefit is part of a broader simplification of the different types of
Government assistance for families. Under this simplification there will be an alignment
of the different parameters governing these payments, such as definition of income,
income thresholds and eligibility criteria. Details are being finalised.
Q What is happening with the Child Care Card?
A The introduction of an electronic Child Care Card and payment of Childcare Assistance
and the Childcare Rebate in arrears has been deferred beyond 1 January 1999 to allow
development of a business case to determine what (if any) technology is the most
appropriate for child care payments.
Q Are families being consulted regarding the changes to family assistance?
A Focus groups for families have been held and the views expressed in these groups are
being taken into account.
Q Will families and services be offered a choice between payment options?
A The tax reform package is designed to provide choice to families. In line with this
objective, options for paying CCB are being considered.
Q Will there still be Hardship Provisions?
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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A A Special Child Care Benefit is envisaged to be available under similar arrangements to
current Special Childcare Assistance.
Child Care Benefit, cont
Q Will rural and remote initiatives be maintained under the Child Care Benefit?
A The Commonwealth Government will retain its rural and remote initiatives, as they are a
key part of the Government's ongoing commitment to assist families in rural and remote
areas who may otherwise be disadvantaged due to their location.
Q Will there be any changes to the way in which hours of care are charged?
A The family assistance tax reforms will not change the way in which assistance is based on
hours of care charged. The issue of funding and charging practices in long day care
centres is being addressed separately by the Commonwealth Child Care Advisory
Council.
Q What will happen with the 20 & 50 Hour Limits?
A The 20 hour and 50 hour limits will continue to apply. If a family requires care beyond
these limits, current exemptions will still apply.
Q Will Work Tests be required?
A Work tests will still apply to establish entitlement.
Q What will happen to Jobs Education and Training (JET) payments under the new
Child Care Benefit?
A JET payments will continue and will reflect the new Child Care Benefit payment rates.
Q Will the current system of fee ceilings be maintained?
A The current system is complex and confusing for families. Under Child Care Benefit, a
family’s entitlement will be based on a maximum benefit, tapering to a minimum rate of
payment.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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Treatment of Fringe Benefits for family assistance
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Q Will fringe benefits be included in income for the purposes of assessing entitlement
to family assistance?
A Fringe benefits that exceed $1,000 will be included as income for assessing Family Tax
Benefit, Child Care Benefit, the Youth Allowance parental income test and child support
liabilities. The non-grossed up amount of an employee’s total fringe benefits where they
exceed $1,000 will be added to a customer’s income to calculate their entitlement.
Q Which fringe benefits will be taken into account?
A Most fringe benefits that attract Fringe Benefits Tax will be assessed as income for
Family Tax Benefit, Child Care Benefit, the Youth Allowance parental income test and
child support liabilities. These include those benefits currently assessed for Family
Allowance such as employer provided cars, school fees, private health insurance, low
interest loans, housing assistance, financial investments and expense benefits.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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Family Assistance Office
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Q What services and payments will the Family Assistance Office provide?
A The Family Assistance Office will deliver Family Tax Benefit Parts A and B, Child Care
Benefit, Maternity Allowance and Maternity Immunisation Allowance. It will provide
families with information about the implications of choosing family assistance via
fortnightly payments, tax deductions or lump sum payments.
The Family Assistance Office and Centrelink will work closely together to
provide customers with other forms of assistance such as income support, social
work services, other family related benefits or child support.
Q Where will the Family Assistance Office be located?
Q How will the Family Assistance Office differ from Centrelink?
A The Family Assistance Office will be delivered through existing Centrelink, Australian
Tax Office (ATO) and Health Insurance Commission (Medicare) sites and will be colocated with Centrelink, ATO and Medicare offices. It will focus on the specific needs of
families with children and most families will be able to choose which agency they would
like to deal with.
Q How will families be able to access the Family Assistance Office?
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services
A
new tax system
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A The Family Assistance Office will provide families with a range of access options
including face to face access through a network of offices, phone access through a
dedicated 13 telephone number and mail access.
Information prepared by:
Department of the Treasury
Department of Health and Aged Care
Department of Family and Community Services