The majority voted in favour of a motion to read the bill for a second time.(Read more about the stages that a bill must pass through to become law here. ) This means that the majority agree with the main idea of the bill and that they can now consider it in more detail.
Background to the bill
- maintain the indexation pause on the Child Care Rebate (CCR) limit at $7500 for three years from 1 July 2014; and
- maintain the Child Care Benefit (CCB) income thresholds at the amounts applicable as at 30 June 2014 for three years from 1 July 2014.
Normally, the CCR limit and CCB income test thresholds are indexed on an annual basis to the Consumer Price Index (CPI). These measures constitute a freeze on the annual indexation of these amounts.(Read more about these measure in the bills digest. )
The Government announced this freeze on the indexation of the CCB income test threshold in the 2014–15 Budget. It is part of a broader measure that affects the indexation of income test thresholds for major welfare payments.(Read more about the background to the bill in the bills digest.)