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Schedule 1—Amendments relating to child care subsidies

Schedule 1 Amendments relating to child care subsidies

Part 1 Amendments commencing at the start of the first CCS fortnight after Royal Assent

A New Tax System (Family Assistance) Act 1999

1  Subsection 3(1) (definition of session of care )

Omit “a determination in force under”, substitute “Minister’s rules made for the purposes of”.

2  Subsection 9(1)

Omit “The Minister must, by legislative instrument, determine”, substitute “The Minister’s rules must prescribe”.

3  Subsection 9(2)

Omit “A determination under”, substitute “Minister’s rules made for the purposes of”.

4  Subparagraph 10(2)(b)(iii)

Repeal the subparagraph, substitute:

                            (iii)  not after the last day the child attended a session of care provided by the service before the child ceased to be enrolled for care by the service; and

5  At the end of subsection 10(2)

Add:

Note:          Ceases to be enrolled is defined in section 200B of the Family Assistance Administration Act.

6  After subsection 10(2)

Insert:

          (2A)  The Minister’s rules may prescribe circumstances in which subparagraph (2)(b)(ii) or (iii) does not apply.

7  Subparagraph 10(3)(c)(iii)

Repeal the subparagraph, substitute:

                            (iii)  not after the last day the child attended a session of care provided by the service before the child ceased to be enrolled for care by the service; and

8  At the end of subsection 10(3)

Add:

Note:          Ceases to be enrolled is defined in section 200B of the Family Assistance Administration Act.

9  After subsection 10(3)

Insert:

          (3A)  The Minister’s rules may prescribe circumstances in which subparagraph (3)(c)(ii) or (iii) does not apply.

10  Subsection 10(5)

Repeal the subsection.

11  At the end of subsection 85BA(1)

Add:

             ; and (e)  if the session of care is provided by an approved child care service of a kind prescribed by the Minister’s rules—the Secretary determines that the requirements prescribed by the Minister’s rules in relation to that kind of service are met.

12  At the end of section 85BA

Add:

             (3)  A determination under paragraph (1)(e) is not a legislative instrument.

13  Subparagraph 85CA(2)(b)(i)

Omit “ACCS (child wellbeing)”, substitute “CCS”.

14  Subsection 85CB(1) (note)

Omit “appropriate State/Territory body”, substitute “appropriate State/Territory support agency”.

15  Subsection 85CE(1) (note)

Omit “appropriate State/Territory body”, substitute “appropriate State/Territory support agency”.

16  Subparagraph 85CJ(1)(d)(v)

Omit “and”, substitute “or”.

17  At the end of paragraph 85CJ(1)(d)

Add:

                            (vi)  a payment prescribed by the Minister’s rules; and

18  After section 85EC

Insert:

85ECA   No eligibility for in home care unless certain requirements met

                   An individual is not eligible for CCS or ACCS, and an approved provider is not eligible for ACCS (child wellbeing), for a session of care provided by an in home care service to a child unless any requirements prescribed by the Minister’s rules are met.

19  After subsection 85GB(2)

Insert:

          (2A)  Despite subsection 14(2) of the Legislation Act 2003 , the Minister’s rules and the Secretary’s rules may make provision in relation to a matter by applying, adopting or incorporating, with or without modification, any matter contained in an instrument or other writing as in force or existing from time to time.

20  Subclause 1(1) of Schedule 2 (method statement, step 5)

Repeal the step, substitute:

Step 5.   Work out:

               (a)     the activity-tested amount of CCS for those sessions of care (see clause 4); and

              (b)     if at least one of those sessions of care is a session of care to which clause 4A applies—the adjusted activity-tested amount of CCS for those sessions of care (see clause 4A).

              If paragraph (b) applies, go to step 7.

              Otherwise, go to step 6.

21  Subclause 1(1) of Schedule 2 (method statement, after step 6)

Insert:

Step 7.   If at least one of the sessions of care identified in step 3 is a session of care to which clause 4A applies, the amount of CCS for the individual for the week, for the sessions of care, is:

               (a)     the adjusted activity-tested amount; or

              (b)     if the annual cap applies to the individual for the income year in which the CCS fortnight that includes the week starts, and the difference between the annual cap and the total previous CCS (see subclause (3)) is less than the adjusted activity-tested amount—that difference.

22  Subparagraph 2(2)(b)(i) of Schedule 2

Repeal the subparagraph, substitute:

                              (i)  the hourly rate of any payment (other than a payment mentioned in subclause (2A)) which the individual benefits from in respect of that session; and

23  After subclause 2(2) of Schedule 2

Insert:

          (2A)  Subparagraph 2(2)(b)(i) does not apply to the following payments:

                     (a)  CCS;

                     (b)  ACCS;

                     (c)  a payment prescribed by the Minister’s rules.

24  Subclause 2(3) of Schedule 2 (table)

Repeal the table (including the note), substitute:

 

CCS hourly rate cap

Item

If the session of care is provided by:

the CCS hourly rate cap is:

1

a centre-based day care service

$11.98

2

a family day care service

$11.10

3

an outside school hours care service

$10.48

4

an in home care service

$32.58

5

a type of service prescribed by the Minister’s rules

the dollar amount prescribed by the Minister’s rules

Note:          The dollar amounts referred to in the table are indexed under Schedule 4 and reflect the indexation applied on 1 July 2019.

25  At the end of Part 1 of Schedule 2

Add:

4A   Adjusted activity-tested amount of CCS

             (1)  This clause applies in relation to a session of care if the amount (the actual fee ) the individual or the individual’s partner is liable to pay for the session of care is less than the sum of:

                     (a)  the activity-tested amount of CCS for the individual for the session; and

                     (b)  the amount of a payment prescribed by the Minister’s rules for the purposes of paragraph 2(2A)(c) which the individual benefits from in respect of the session.

             (2)  For the purposes of step 5 of the method statement in clause 1, the adjusted activity-tested amount of CCS, for the sessions of care identified in step 3 of the method statement, is the sum of:

                     (a)  for each session of care to which this clause applies—the amount worked out by reducing the activity-tested amount of CCS for the session by the excess amount; and

                     (b)  for each session of care to which this clause does not apply—the activity-tested amount of CCS for the session.

             (3)  For the purposes of paragraph (2)(a), the excess amount , in relation to a session of care, is:

                     (a)  an amount equal to the difference between:

                              (i)  the sum of the amounts mentioned in paragraphs (1)(a) and (b) for the session; and

                             (ii)  the actual fee for the session; or

                     (b)  if another method for working out the amount is prescribed by the Minister’s rules—an amount worked out in accordance with that method.

26  At the end of clause 5 of Schedule 2

Add:

                     (e)  replace step 7 with this:

Step 7.   If at least one of the sessions of care identified in step 3 is a session of care to which clause 4A applies, the amount of ACCS for the individual for the week, for the sessions of care, is the adjusted activity-tested amount.

27  At the end of clause 7 of Schedule 2

Add:

                     (e)  replace step 7 with this:

Step 7.   If at least one of the sessions of care identified in step 3 is a session of care to which clause 4A applies, the amount of ACCS (transition to work) for the individual for the week, for the sessions of care, is the adjusted activity-tested amount.

28  Paragraph 9(2)(b) of Schedule 2

Omit “subsidy”, substitute “payment”.

29  Subclause 3AA(2) of Schedule 3

Repeal the subclause, substitute:

             (2)  If an individual is a member of a couple with a TFN determination person on the first Monday (an applicable Monday ) of any CCS fortnight in an income year, the individual’s adjusted taxable income for that year is taken to include:

                     (a)  if the individual is a member of the same couple on all applicable Mondays in the year—the TFN determination person’s adjusted taxable income for that year; or

                     (b)  in any other case—an amount equal to the percentage of the TFN determination person’s adjusted taxable income for that year that corresponds to the percentage of applicable Mondays in that year:

                              (i)  on which the TFN determination person was a member of that couple; and

                             (ii)  that was included in a week for which a determination under section 67CD of the Family Assistance Administration Act about the individual’s entitlement to be paid CCS or ACCS was made.

30  Subclause 3(1) of Schedule 4 (cell at table item 18, column 2)

Repeal the cell, substitute:

first day of first CCS fortnight of income year

31  Subclause 3(1) of Schedule 4 (cell at table item 19, column 2)

Repeal the cell, substitute:

first day of first CCS fortnight of income year

32  Subclause 3(1) of Schedule 4 (cell at table item 20, column 2)

Repeal the cell, substitute:

first day of first CCS fortnight of income year

 

A New Tax System (Family Assistance) (Administration) Act 1999

33  Subsection 3(1) (definition of appropriate State/Territory body )

Repeal the definition.

34  Subsection 3(1)

Insert:

appropriate State/Territory support agency has the meaning given by subsection 204K(7).

34A  Section 67BE

Before “A claim”, insert “(1)”.

35  Paragraphs 67BE(c) to (e)

Repeal the paragraphs, substitute:

                     (c)  the claim contains details of a bank account, maintained by the individual alone or jointly with someone else, into which amounts of CCS or ACCS can be paid; and

                     (d)  unless paragraph (e) applies—the claim contains the tax file number of each TFN claim person; and

                     (e)  if the claim is for CCS in substitution for an individual who has died—the claim contains the tax file number of each TFN substitution person; and

35A  At the end of section 67BE

Add:

             (2)  The Secretary may make a written determination that paragraph (1)(d) does not apply in relation to a claim for 28 days after the day the determination is made, if the Secretary is satisfied that it is appropriate in the circumstances to do so.

             (3)  If:

                     (a)  a determination under subsection (2) is made in relation to a claim; and

                     (b)  the Secretary is satisfied that it is appropriate in the circumstances that paragraph (1)(d) not apply in relation to the claim indefinitely;

the Secretary may, before the end of the 28 days after the day the determination is made, make a further written determination accordingly.

36  Subsections 67BF(2) and (3)

Repeal the subsections, substitute:

             (2)  A claim is taken not to have been made by an individual if:

                     (a)  the Secretary has made a determination under subsection 67BE(2) in relation to the claim; and

                     (b)  at the end of the 28 days after the day the determination was made:

                              (i)  if the Secretary has made a further determination under subsection 67BE(3) in relation to the claim—the individual has not provided the individual’s tax file number; or

                             (ii)  if the Secretary has not made a further determination under subsection 67BE(3) in relation to the claim—the individual has not provided the tax file number of each TFN claim person.

             (3)  The Secretary’s rules may prescribe other circumstances in which a claim is taken not to have been made.

37  Sections 67BG, 67BH and 67BI

Repeal the sections.

38  Paragraphs 67CD(1)(c) and (d)

Repeal the paragraphs.

39  Subsection 67CD(1) (note)

Repeal the note.

40  After subsection 67CD(1)

Insert:

          (1A)  For the purposes of paragraph (1)(b), the provider of the service is taken to have given the Secretary a report under section 204B in relation to the child for the week even if the report is not given by the day required under paragraph 204B(2)(d).

Note:          The report must still be given in accordance with paragraphs 204B(2)(a), (b) and (c), and the information included in the report as required by those provisions must be accurate and complete (see subsection 204B(3)).

41  Paragraphs 67CD(10)(a) and (b)

Repeal the paragraphs, substitute:

                     (a)  either of the following applies:

                              (i)  the Secretary has the details of a bank account, maintained by the individual alone or jointly with someone else, into which amounts of CCS or ACCS can be paid;

                             (ii)  the Secretary made a request of the individual under section 67FE no more than 28 days ago; and

                     (b)  any of the following applies:

                              (i)  the Secretary has the tax file number of each TFN determination person;

                             (ii)  the Secretary made a determination under subsection 67BE(2) or (3) in relation to the individual’s claim no more than 28 days ago;

                            (iii)  the Secretary made a request of the individual under section 67FG no more than 28 days ago;

                            (iv)  the Secretary has the tax file number of the individual and is satisfied that it is unreasonable in the circumstances for the individual to provide the tax file number of each TFN determination person other than the individual;

42  Paragraphs 67CF(1)(c) and (d)

Repeal the paragraphs, substitute:

                     (c)  either of the following applies:

                              (i)  the Secretary has the details of a bank account, maintained by the individual alone or jointly with someone else, into which amounts of CCS or ACCS can be paid;

                             (ii)  the Secretary made a request of the individual under section 67FE no more than 28 days ago.

43  Subsection 67CF(1) (note)

Repeal the note.

44  After subsection 67CF(1)

Insert:

          (1A)  For the purposes of paragraph (1)(b), the provider of the child care service is taken to have given the Secretary a report under section 204B in relation to the child for a week even if the report is not given by the day required under paragraph 204B(2)(d).

Note:          The report must still be given in accordance with paragraphs 204B(2)(a), (b) and (c), and the information included in the report as required by those provisions must be accurate and complete (see subsection 204B(3)).

45  Subsection 67CH(1) (note)

Repeal the note.

46  After subsection 67CH(1)

Insert:

          (1A)  For the purposes of paragraph (1)(b), the provider is taken to have given the Secretary a report for the week under section 204B in relation to the child even if the report is not given by the day required under paragraph 204B(2)(d).

Note:          The report must still be given in accordance with paragraphs 204B(2)(a), (b) and (c), and the information included in the report as required by those provisions must be accurate and complete (see subsection 204B(3)).

47  Paragraphs 67DC(6)(b) and (c)

Omit “clause 3”, substitute “clause 3AA”.

48  Paragraphs 67DD(1)(f) and (5)(b) and (c)

Omit “clause 3”, substitute “clause 3AA”.

49  Paragraph 67DE(3)(b)

Omit “clause 3”, substitute “clause 3AA”.

50  Section 67FF

Repeal the section.

51  Section 67FG

Repeal the section, substitute:

67FG   Request for tax file number etc. of TFN determination persons

                   If:

                     (a)  a determination is in effect under paragraph 67CC(1)(a) that an individual is eligible for CCS for a child; and

                     (b)  the Secretary does not know the tax file number of one or more of the TFN determination persons;

the Secretary may, by written notice given to the individual, request that the individual provide the tax file number of a specified TFN determination person within 28 days of the request.

52  Subsection 93A(6) (paragraph (bc) of the definition of family assistance payment )

Omit “section 219RD”, substitute “section 205A”.

53  Section 110

Omit:

If a person is dissatisfied with a decision of a decision reviewer under Division 1, the person may apply to the AAT for review of the decision (an “AAT first review”) (certain decisions are excepted).

substitute:

If a person is dissatisfied with a decision of a decision reviewer under Subdivision B of Division 1, the person may apply to the AAT for review of the decision (an “AAT first review”) (certain decisions are excepted).

54  Subsection 111(1)

Before “Division 1”, insert “Subdivision B of”.

55  Paragraph 111(2)(c)

Omit “section 108”, substitute “section 109G”.

56  Paragraph 111(2)(d)

Omit “section 219GA”, substitute “section 203A”.

57  Paragraph 111(2)(da)

Omit “67FF,”.

58  Subsection 111(2B)

Repeal the subsection.

59  Subsection 111(3)

Repeal the subsection, substitute:

             (3)  In this section:

decision reviewer means a person who, in accordance with subsection 109A(2), reviewed a decision that was the subject of an application under section 109A.

60  Subsection 128(4)

Repeal the subsection.

61  Paragraph 154(4)(e)

Omit “section 202D”, substitute “section 202B or 202C”.

62  Subsection 154(5)

Omit “section 202D”, substitute “section 202B or 202C”.

63  Paragraph 162(1)(b)

Omit “Pilot; or”, substitute “Pilot.”.

64  Paragraphs 162(1)(c) and (2)(db)

Repeal the paragraphs.

65  Paragraph 195A(3)(a)

Omit “(power to require information about children enrolled in child care)”, substitute “(power to require information about care provided)”.

66  After paragraph 198A(b)

Insert:

                   (ba)  what constitutes a child care place in respect of a specified class of approved child care services;

67  Subsection 200A(3)

Omit “an individual”, substitute “a person”.

68  After subsection 200A(4)

Insert:

          (4A)  If an approved provider of an approved child care service fails to give a notice under subsection (1), (2) or (3) by the day required under paragraph (4)(c), (d) or (e) (as the case requires):

                     (a)  the failure does not affect the validity of a notice given after that day; and

                     (b)  the notice is taken to have been given on the last day the notice was required to be given under paragraph (4)(c), (d) or (e) (as the case requires), other than for the purposes of subsections (5) and (6).

69  Section 200D (heading)

Repeal the heading, substitute:

200D   Notice of change in circumstances—providers

70  After subsection 200D(3)

Insert:

          (3A)  If an approved provider of an approved child care service fails to give a notice under subsection (1) or (2) by the day required under paragraph (3)(b) or (c) (as the case requires):

                     (a)  the failure does not affect the validity of a notice given after that day; and

                     (b)  the notice is taken to have been given on the last day the notice was required to be given under paragraph (3)(b) or (c) (as the case requires), other than for the purposes of subsections (4) and (5).

71  Paragraph 201B(1)(b)

Repeal the paragraph, substitute:

                     (b)  the sum of:

                              (i)  the fee reduction amount for the decision; and

                             (ii)  the amount of any payment prescribed by the Minister’s rules for the purposes of paragraph 2(2A)(c) of Schedule 2 to the Family Assistance Act that the individual benefited from in respect of the sessions of care.

72  After subsection 201C(1)

Insert:

          (1A)  The approved provider of a child care service must not charge an individual who benefits from a payment prescribed by the Minister’s rules for the purposes of paragraph 2(2A)(c) of Schedule 2 to the Family Assistance Act (a prescribed payment ) in respect of a session of care provided by the service an hourly session fee that exceeds the hourly session fee the provider would ordinarily charge an individual who does not receive a prescribed payment.

73  Subsections 201C(2) and (3)

After “subsection (1)”, insert “or (1A)”.

74  Subparagraph 202C(1)(a)(ii)

Omit “appropriate State/Territory body”, substitute “appropriate State/Territory support agency”.

75  Subsection 204B(1)

Repeal the subsection, substitute:

             (1)  An approved provider of an approved child care service must give the Secretary a report in accordance with subsection (2) for a week if:

                     (a)  the provider has given the Secretary an enrolment notice for a child; and

                     (b)  care was provided to the child by the service on a day in the week.

Note:          The provider must give enrolment notices to the Secretary relating to all children for whom care is provided, including both enrolled children (for whom complying written arrangements are made) and others for whom a relevant arrangement is made (see section 200A).

          (1A)  For the purposes of paragraph (1)(b), the care may be a session of care.

76  After subsection 204B(6)

Insert:

          (6A)  For the purposes of subsection (6), a reference to a report includes a report that is given after the last day the report was required to be given under paragraph (2)(d).

77  After subsection 204C(1)

Insert:

          (1A)  For the purposes of subsection (1), a report is taken to have been given by an approved provider under subsection 204B(1) even if the report is not given by the day required under paragraph 204B(2)(d).

Note:          The report must still be given in accordance with paragraphs 204B(2)(a), (b) and (c), and the information included in the report as required by those provisions must be accurate and complete (see subsection 204B(3)).

78  Section 204E (heading)

Repeal the heading, substitute:

204E   Requirement to give information about care provided

79  Subsection 204E(1)

Omit “further information under section 67FH (information about children enrolled in child care)”, substitute “information under section 67FH (information about care provided)”.

80  At the end of subsection 204H(1) (after the table)

Add:

Note:          For item 12, a report is taken to have been given under subsection 204B(1) for the purposes of subsection 204C(1) even if the report is given late (see subsection 204C(1A)).

81  Section 204K

Repeal the section, substitute:

204K   Notice to appropriate State/Territory support agency of child at risk of serious abuse or neglect

Certification for ACCS (child wellbeing)

             (1)  An approved provider that gives the Secretary a certificate under section 85CB of the Family Assistance Act must, no later than 6 weeks after the day the certificate takes effect, give an appropriate State/Territory support agency notice that the provider considers the child to whom the certificate relates is or was at risk of serious abuse or neglect.

             (2)  Subsection (1) does not apply if:

                     (a)  the certificate is cancelled under section 85CC of the Family Assistance Act and a replacement certificate (within the meaning of paragraph (4)(b) of that section) is not given; or

                     (b)  the certificate is cancelled under section 85CD of the Family Assistance Act; or

                     (c)  the provider was notified of the risk by an appropriate State/Territory support agency.

Determination for ACCS (child wellbeing)

             (3)  Before making an application for a determination under section 85CE of the Family Assistance Act, an approved provider must give an appropriate State/Territory support agency notice that the provider considers the child to whom the application relates is or was at risk of serious abuse or neglect.

             (4)  Subsection (3) does not apply if:

                     (a)  the provider gave an appropriate State/Territory support agency a notice in relation to the child under subsection (1) less than 6 weeks ago; or

                     (b)  the provider was notified of the risk by an appropriate State/Territory support agency.

Offence

             (5)  A person commits an offence of strict liability if the person contravenes subsection (1) or (3).

Penalty:  60 penalty units.

Civil penalty

             (6)  A person is liable to a civil penalty if the person contravenes subsection (1) or (3).

Meaning of appropriate State/Territory support agency

             (7)  Any of the following is an appropriate State/Territory support agency for the State or Territory where care is provided to the child to whom a certificate relates:

                     (a)  a department or agency of the State or Territory that is responsible for dealing with matters relating to the welfare of children;

                     (b)  an organisation dealing with such matters on behalf of such a department or agency in accordance with an agreement between the department or agency and the organisation.

82  Section 219UB (cell at table item 2, column headed “Description”)

Omit “information about children enrolled in child care”, substitute “information about care provided”.

83  Section 219UB (cell at table item 5, column headed “Description”)

Omit “section 202D”, substitute “section 202B or 202C”.

84  At the end of subsection 224(2)

Add:

               ; or (d)  sent by other electronic means to the provider.

85  Saving of instruments

Despite the amendments of the A New Tax System (Family Assistance) Act 1999 made by this Part, an instrument in force under section 9 of that Act immediately before the commencement of this item continues in force (and may be dealt with), on and after commencement, as if it were Minister’s rules made for the purposes of that provision as amended by this Act.

86  Application—adjusted taxable income of members of a couple

The amendments of clause 3AA of Schedule 3 to the A New Tax System (Family Assistance) Act 1999 made by this Part apply in relation to the income year beginning on 1 July 2019 and later income years.

87  Application—claims for CCS made before commencement

The amendments of the A New Tax System (Family Assistance) (Administration) Act 1999 made by items 35, 36 and 37 of this Part apply in relation to:

                     (a)  claims made on or after the commencement of this item; and

                     (b)  claims made before the commencement of this item if, immediately before that commencement, a determination has not been made by the Secretary under section 67CC of the A New Tax System (Family Assistance) (Administration) Act 1999 in relation to the claim.

Part 2 Amendments commencing 13 January 2020

A New Tax System (Family Assistance) (Administration) Act 1999

88  Subparagraph 200B(1)(b)(iii)

Omit “8 weeks”, substitute “14 weeks”.

Part 3 Amendments commencing 13 July 2020

A New Tax System (Family Assistance) Act 1999

89  Subsection 85CB(4)

Repeal the subsection, substitute:

             (4)  A certificate given by an approved provider does not take effect if the certificate would have the result that any certificates given by the provider, together with any determinations made under section 85CE, that are in effect on any day of the first week in which the certificate takes effect, would be in effect in relation to more than the percentage of children for whom the service is providing care specified in a determination made under subsection (4A).

          (4A)  For the purposes of subsection (4), if the Secretary determines that it is appropriate to the circumstances of the service, the Secretary may make a written determination specifying:

                     (a)  a percentage of children for whom the service is providing care; and

                     (b)  the period for which the determination is to have effect.

90  Subsection 85CB(6)

Omit “paragraph (4)(c)”, substitute “subsection (4A)”.