71GB   Debts arising in respect of business continuity payments paid to service—debt owed by service

             (1)  If:

                     (a)  an amount is paid to an approved child care service under section 219RD (business continuity payments); and

                     (b)  the service’s approval is suspended or cancelled under this Act; and

                     (c)  the whole or a part of the amount has not already been set off against another amount under section 219RE by the day the service’s approval is suspended or cancelled;

then that whole or part is a debt due to the Commonwealth by the service immediately before its approval was suspended or cancelled.

             (2)  Subject to subsection 93A(5), if:

                     (a)  a payment under section 219RD is made to a financial institution for the credit of an account kept with the institution (the incorrect account ); and

                     (b)  the Secretary is satisfied that the amount paid to the institution was intended to be paid for the credit of an account kept in the name of a person who was not the person or one of the persons in whose name or names the incorrect account was kept;

an amount equal to the amount of the payment made to the institution is a debt due to the Commonwealth by the person, or jointly and severally by the persons, in whose name or names the incorrect account was kept.

5  Subsection 82(3) (paragraph (a) of the definition of debt )

After “71GA,”, insert “71GB,”.

6  Paragraph 87A(2)(b)

Omit “and any amounts by which the advance is reduced under section 87B”, substitute “, and of any amounts by which any amount in respect of fee reduction is reduced under section 87B in relation to the setting off of the debt,”.

7  Paragraph 87B(2)(b)

Omit “and any amounts by which the advance is reduced under section 87A”, substitute “, and of any amounts by which any advance is reduced under section 87A in relation to the setting off of the debt,”.

8  Subsection 93A(6) (after paragraph (ba) of the definition of family assistance payment )

Insert:

                  (baa)  a payment under section 219RD (business continuity payments); or

9  After paragraph 104(d)

Insert:

                  (daa)  a decision under section 219RD (business continuity payments); or

10  After paragraph 108(2)(da)

Insert:

                  (daa)  a decision under section 219RD (business continuity payments); or

11  Subparagraph 176(1)(a)(iii)

Omit “and”, substitute “or”.

12  At the end of paragraph 176(1)(a)

Add:

                            (iv)  in the case of an approved child care service—a payment under section 219RD (business continuity payments); and

13  At the end of subsection 176(2)

Add:

             ; and (c)  the element of the offence that a payment is made under section 219RD.

14  At the end of paragraph 176(3)(d)

Add:

                     ; or (iv)  in the case of an approved child care service—a payment under section 219RD (business continuity payments).

15  At the end of subsection 176(4)

Add:

             ; and (c)  the element of the offence that a payment is made under section 219RD.

16  Paragraph 178(1)(b)

Omit “or enrolment advances”, substitute “, enrolment advances or payments under section 219RD”.

17  Subsection 219AB(2)

Omit “subsection (3)”, substitute “subsections (3) and (4)”.

18  At the end of section 219AB

Add:

             (4)  If:

                     (a)  a payment is made to the service under section 219RD in relation to a period (the initial period ) notified to the service under subsection 219RD(4); and

                     (b)  the payment is made because of the service’s failure to give a report under subsection 219N(1) or (2) for a week (the applicable week ) in respect of one or more enrolments; and

                     (c)  for another enrolment referred to in subsection 219A(1) or 219AA(1), the last day of the period referred to in subsection (2) of this section:

                              (i)  is the last day of the period applicable under subsection 219N(5) in relation to the applicable week; or

                             (ii)  occurs during the initial period;

the notice of the other enrolment must be given no later than:

                     (d)  7 days after the end of the initial period; or

                     (e)  if one or more other periods (that are consecutive with the initial period) are notified to the service under subsection 219RD(4)—7 days after the end of the last of those periods.

Example:    A payment is made under section 219RD to an approved child care service for a week starting on the 22nd day of a month. This week is the initial period. Assume no other payments under that section are made to the service.

                   The payment is made because of the service failing to give a report under subsection 219N(1) (in respect of one or more enrolments) for the week starting on the first day of the month. This is the applicable week. Assume the last day for giving the report is the 21st day of the month.

                   For another enrolment, assume the last day for giving notice of the enrolment under subsection (2) of this section is the 21st day of the month or a day occurring in the initial period.

                   The notice in relation to the other enrolment must be given by the end of the week commencing on the 29th day of that month.

19  Subsection 219AF(1)

Omit “, within 7 days after the information becomes incorrect or becomes available,”.

20  After subsection 219AF(1)

Insert:

          (1A)  Subject to subsection (1B), the notice must be given within 7 days after the information becomes incorrect or becomes available.

          (1B)  If:

                     (a)  a payment is made to the service under section 219RD in relation to a period (the initial period ) notified to the service under subsection 219RD(4); and

                     (b)  the payment is made because of the service’s failure to give a report under subsection 219N(1) or (2) for a week (the applicable week ); and

                     (c)  for any enrolment, the last day of the period referred to in subsection (1A) of this section:

                              (i)  is the last day of the period applicable under subsection 219N(5) in relation to the applicable week; or

                             (ii)  occurs during the initial period;

the notice must be given no later than:

                     (d)  7 days after the end of the initial period; or

                     (e)  if one or more other periods (that are consecutive with the initial period) are notified to the service under subsection 219RD(4)—7 days after the end of the last of those periods.

21  Subsection 219N(5)

Omit “The”, substitute “Subject to subsection (5AA), the”.

22  After subsection 219N(5)

Insert:

       (5AA)  If:

                     (a)  a payment is made to the service under section 219RD in relation to a period (the initial period ) notified to the service under subsection 219RD(4); and

                     (b)  the payment is made because of the service’s failure to give a report under subsection (1) or (2) of this section within the period applicable under subsection (5) of this section;

the report must be given no later than:

                     (c)  7 days after the end of the initial period; or

                     (d)  if one or more other periods (that are consecutive with the initial period) are notified to the service under subsection 219RD(4)—7 days after the end of the last of those periods.

23  After paragraph 219Q(3)(c)

Insert:

                    (ca)  section 219RE (set off where a payment under section 219RD is made); and

24  Subparagraph 219QB(1)(a)(ii)

Omit “or 219RC”, substitute “, 219RC or 219RE”.

25  After paragraph 219RA(2)(c)

Insert:

                    (ca)  section 219RE (set off where a payment under section 219RD is made); and

26  Paragraph 219RC(b)

Omit “or 219RC”, substitute “, this section or section 219RE”.

27  At the end of Part 8A

Add: