10 May 12 Schoolkids Bonus Budget Measures Bill 2012 awaits Royal Assent
On 9 May 2012, Family Assistance and Other Legislation Amendment (Schoolkids Bonus Budget Measures) Bill 2012 was introduced into the House of Representatives. The following is extracted from the Explanatory Memorandum.
The Bill will deliver new assistance to families to help with the costs of their child’s education. This new payment – the schoolkids bonus – is a 2012-13 Budget measure that will replace the education tax refund paid through the taxation system.
Specifically, the Bill will:
- create a separate, ongoing new payment in the family assistance legislation (called a schoolkids bonus), which would be paid in two instalments in January and July each year from 2013 onwards;
- remove the education tax refund for 2011-12 and after from the taxation legislation;
- create a new payment in the family assistance and veterans’ entitlements legislation (called an ETR payment), which would relate to a family’s circumstances on 8 May 2012.
As a transition to the schoolkids bonus, the new ETR payment under the family assistance legislation will replace the education tax refund that would otherwise have been available for 2011-12.
Items 1 to 9 of Schedule 3 to the Bill amend the ITAA 1997 so that the ETR Payment and the Schoolkids Bonus are wholly exempt from income tax from the day this Schedule receives Royal Assent.
On 9 May 2012, the Bill was passed by the House of Representatives without amendment. On 10 May 2012, the Bill was passed by the Senate without amendment.
The Bill now awaits Royal Assent.