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Family Assistance Legislation Amendment (Child Care) Bill 2009

Schedule 2 Child care rebate in substitution

Part 1 Amendments

A New Tax System (Family Assistance) Act 1999

1  After subsection 57F(1)

Insert:

Eligibility relating to child care benefit in substitution

          (1A)  An individual is eligible for child care rebate for a period in respect of a child if:

                     (a)  care is provided by one or more approved child care services to the child during at least one week in the period (whether or not the week finished in that period); and

                     (b)  the care is covered by:

                              (i)  a determination under section 53D of the Family Assistance Administration Act that the individual is entitled to be paid child care benefit by single payment/in substitution because of the death of another individual; or

                             (ii)  a determination under subsection 53E(1) of the Family Assistance Administration Act in relation to the individual and the death of another individual; and

                     (c)  under Subdivision G of Division 4, one or more of the following is the weekly limit of hours applicable to the deceased individual in the week:

                              (i)  the 50 hour limit (see section 54);

                             (ii)  the more than 50 hour limit (see section 55);

                            (iii)  the 24 hour care limit under section 56.

Note:          If one of the paragraph (c) limits applies, the paragraph (c) condition is satisfied, even if the deceased individual had not used child care for the child during the week up to the full extent of the limit.

Note 1:    The heading to section 57F is altered by adding at the end “ or a period ”.

Note 2:    The following heading to subsection 57F(1) is inserted “ Eligibility relating to child care benefit by fee reduction or for past period ”.

2  Paragraph 57F(2)(a)

Repeal the paragraph, substitute:

                     (a)  a limit mentioned in paragraph (1)(c) or (1A)(c) does not apply under a determination in force under section 50H of the Family Assistance Administration Act for the individual concerned in the week; but

Note:       The following heading to subsection 57F(2) is inserted “ Operation of condition in paragraph (1)(c) or (1A)(c) ”.

3  Subsection 57F(2) (note)

Repeal the note, substitute:

Note 1:       For a limit in paragraph (1A)(c), the individual concerned is the deceased individual.

Note 2:       If the only limit applicable to the individual concerned in the week was the limit of 24 hours under subsection 53(3), then the condition in paragraph (1)(c) or (1A)(c) would not be satisfied.

4  Subsection 57F(3)

Omit “, to be applicable to the individual”, substitute “or (1A)(c), to be applicable to the individual concerned”.

5  At the end of subsection 57F(3)

Add:

Note:          For the purposes of paragraph (1A)(c), the individual concerned is the deceased individual.

6  Subsection 84B(2)

Repeal the subsection, substitute:

Special rule if the week is also a base week for the individual’s partner for the child

             (2)  However, if the base week is also:

                     (a)  a base week for the individual’s partner and the child; or

                     (b)  a base week, for the purposes of section 84DA, for the individual’s partner and the child;

the amount of the individual’s approved child care fees for the child in the base week is the amount of fees payable for care provided during the week that is covered by a determination mentioned in paragraph 84C(c) in respect of the individual and the child.

7  After Subdivision B of Division 4A of Part 4

Insert:

Subdivision BA Child care rebate relating to child care benefit in substitution

84DA   Amount of the child care rebate—relating to child care benefit in substitution

                   If a determination of entitlement for child care rebate under section 65ECA of the Family Assistance Administration Act is in force in respect of:

                     (a)  a period (the entitlement period ); and

                     (b)  an individual (the substitute individual ), and a deceased individual, for child care provided by one or more approved child care services to a child during that period;

the amount of the rebate which the substitute individual is entitled to be paid in respect of the child for that period is worked out as follows:

Method statement

Step 1.   Work out the rebate periods. The entitlement period will be the rebate period if it is entirely within an income year. However, if the entitlement period is spread over 2 income years, the part of the entitlement period in each of those years will be a rebate period .

Step 2.   Work out the total amount of the deceased individual’s approved child care fees for the child in each base week for the deceased individual and the child in each rebate period.

Step 3.   Work out the amount (if any) of the substitute individual’s entitlement to child care benefit by single payment/in substitution for the care for the child in each base week for the deceased individual and the child in each rebate period.

Step 4.   Work out the total amount of Jobs Education and Training (JET) Child Care fee assistance (if any) that the deceased individual was eligible to receive for the child in each base week for the deceased individual and the child in each rebate period.

Step 5.   Work out, for each rebate period, the lesser of the following amounts for the child:

               (a)     the amount worked out using the formula:

             

              (b)     the child care rebate limit for the income year that includes the rebate period.

              Add the results if there are 2 rebate periods.

Step 6.   The result is the amount of the substitute individual’s child care rebate for the child for the entitlement period.

84DB   Component of formula— approved child care fees

General rule—approved child care fees for a base week for the deceased individual and a child

             (1)  For the purposes of section 84DA, the amount of the deceased individual’s approved child care fees for a child in a base week for the deceased individual and the child is the amount of fees for which:

                     (a)  the deceased individual; or

                     (b)  the deceased individual’s partner during the week;

is liable for care provided by an approved child care service or services for the child during the week. Subject to subsection (2), it does not matter whether there is any entitlement to child care benefit for that care.

Special rule if the week is also a base week for the deceased individual’s partner for the child

             (2)  However, if the base week is also:

                     (a)  a base week for the deceased individual’s partner and the child; or

                     (b)  a base week, for the purposes of section 84A, for the deceased individual’s partner and the child;

the amount of the deceased individual’s approved child care fees for the child in the base week is the amount of fees payable for care provided during the week that is covered by a determination mentioned in paragraph 84DC(c) in respect of the deceased individual and the child.

Disregard amounts passed on to reduce fees

             (3)  For the purposes of this section, disregard any amount passed on to the deceased individual under section 219B of the Family Assistance Administration Act.

84DC   Component of formula— base week

                   For the purposes of section 84DA, a week is a base week for a deceased individual for a child in a rebate period if:

                     (a)  all or part of the week falls within the rebate period; and

                     (b)  care is provided by one or more approved child care services to the child during the week; and

                     (c)  the care is covered by:

                              (i)  a determination under section 53D of the Family Assistance Administration Act that the substitute individual is entitled to be paid child care benefit by single payment/in substitution because of the death of the deceased individual; or

                             (ii)  a determination under subsection 53E(1) of the Family Assistance Administration Act in relation to the substitute individual and the death of the deceased individual; and

                     (d)  paragraph 57F(1A)(c) (as affected by subsections 57F(2) and (3)) is satisfied for the week.

84DD   Component of formula— amount of the substitute individual’s entitlement to child care benefit

                   The amount of a substitute individual’s entitlement to child care benefit by single payment/in substitution for the care of a child in a base week for the deceased individual and the child in a rebate period is:

                     (a)  for a substitute individual in respect of whom a determination is made under section 53D of the Family Assistance Administration Act because of the death of the deceased individual—so much of the amount in which the substitute individual is determined to be entitled to be paid child care benefit for the rebate period as is attributable to that week; and

                     (b)  for a substitute individual in respect of whom a determination is made under subsection 53E(1) of that Act because of the death of the deceased individual—a nil amount, to the extent that the determination relates to the session or sessions of care provided during that week.

8  Section 84E

Omit “and 84A”, substitute “, 84A and 84DA”.

9  At the end of section 84E

Add:

Note:          The individual may be a deceased individual (see step 4 of the method statement in section 84DA).

10  Subsection 84F(1)

Omit “and 84A”, substitute “, 84A and 84DA”.

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

11  After section 65EC

Insert:

65ECA   Determining entitlement, or no entitlement, to child care rebate—eligibility for child care benefit in substitution

             (1)  This section applies in respect of an individual and a child for a period if:

                     (a)  the Secretary has determined under section 53D that the individual is entitled to be paid child care benefit by single payment/in substitution because of the death of another individual in respect of the child and the period; or

                     (b)  the Secretary has determined under subsection 53E(1) or (2) that the individual is not entitled to be paid child care benefit by single payment/in substitution because of the death of another individual in respect of the child and the period.

Determining entitlement to child care rebate

             (2)  If the Secretary is satisfied:

                     (a)  that the individual is eligible under subsection 57F(1A) of the Family Assistance Act for child care rebate in respect of the child and the period; and

                     (b)  that, if the individual were to be entitled under this subsection to child care rebate in respect of that eligibility, the amount of rebate would be more than a nil amount;

the Secretary must determine that the individual is entitled to be paid child care rebate because of the death of another individual in respect of the child and the period. The determination must include the amount of rebate to which the Secretary considers the individual to be entitled.

             (3)  Subsections 65EA(3) and 65EB(3) do not limit subsection (2).

Determining no entitlement to child care rebate

             (4)  If:

                     (a)  the Secretary is not satisfied that the individual is eligible under subsection 57F(1A) of the Family Assistance Act for child care rebate in respect of the child and the period; or

                     (b)  the Secretary is satisfied that the individual is so eligible, but is not satisfied that, if the individual were to be entitled to child care rebate in respect of that eligibility, the amount of rebate would be more than a nil amount;

the Secretary must determine that the individual is not entitled to be paid child care rebate because of the death of the other individual in respect of the child and the period.

12  Paragraphs 65EE(1)(a) and (b)

Repeal the paragraphs, substitute:

                     (a)  for a determination under a provision other than section 65ECA:

                              (i)  the income year in respect of which the determination is made; and

                             (ii)  whether, under the determination, the individual is entitled to be paid child care rebate in respect of the income year; and

                     (b)  for a determination under section 65ECA:

                              (i)  the period in respect of which the determination is made; and

                             (ii)  whether, under the determination, the individual is entitled to be paid child care rebate in respect of the period; and

13  After subsection 65EF(2C)

Insert:

Rebate because of eligibility for child care benefit in substitution

          (2D)  If a determination is made under section 65ECA that an individual is entitled to be paid child care rebate:

                     (a)  because of the death of another individual; and

                     (b)  in respect of a child and a period;

the Secretary must pay the amount to which the individual is determined to be entitled, at such time as the Secretary considers appropriate, to the credit of a bank account nominated and maintained by the individual.

          (2E)  However, the Secretary must reduce the amount to be paid under subsection (2D) by the amount of any child care rebate already paid under Subdivision AA in respect of the deceased individual and the child for a quarter wholly or partly included in the period.

Note:       The following heading to subsection 65EF(1) is inserted “ Rebate because of eligibility for child care benefit by fee reduction or for past period ”.

14  Subsection 65EF(3)

After “(1)”, insert “or (2D)”.

Note 1:    The following heading to subsection 65EF(3) is inserted “ Secretary may direct payment in a different way ”.

Note 2:    The following heading to subsection 65EF(4) is inserted “ Payment is subject to other provisions ”.

15  Subsection 109A(1) (note)

Repeal the note, substitute:

Note:          If an application is made under this section for review of a decision about a person’s entitlement to child care benefit, and a decision has also been made about the person’s entitlement to child care rebate, that decision about rebate may be automatically reviewed: see Division 5.

16  Subsection 111(1) (note)

Repeal the note, substitute:

Note:          If an application is made under this section for review of a decision about a person’s entitlement to child care benefit, and a decision has also been made about the person’s entitlement to child care rebate, that decision about rebate may be automatically reviewed: see Division 5.

17  Subsection 142(1) (note)

Repeal the note, substitute:

Note:          If an application is made under this section for review of a decision about a person’s entitlement to child care benefit, and a decision has also been made about the person’s entitlement to child care rebate, that decision about rebate may be automatically reviewed: see Division 5.

18  Section 152A

Repeal the section, substitute:

152A   Decisions relating to entitlement to child care benefit by fee reduction or for past period

                   If:

                     (a)  an application (the original application ) has been made under section 109A, 111 or 142 for review of a decision (the CCB decision ) relating to an individual’s entitlement to child care benefit; and

                     (b)  the CCB decision was in respect of one or more sessions of care provided by an approved child care service to a child during a period in an income year; and

                     (c)  a decision (the CCR decision ) has been made under section 65EA, 65EB or 65EC in relation to the individual’s entitlement to child care rebate in respect of the child and the period; and

                     (d)  the result of the review varies or sets aside the CCB decision (whether or not it also substitutes a new decision);

this Act has effect as if the original application included an application for review of the CCR decision.

152B   Decisions relating to entitlement to child care benefit by single payment/in substitution

                   If:

                     (a)  an application (the original application ) has been made under section 109A, 111 or 142 for review of a decision (the CCB decision ) relating to an individual’s entitlement to child care benefit by single payment/in substitution; and

                     (b)  the CCB decision was in respect of one or more sessions of care provided by an approved child care service to a child during a period; and

                     (c)  a decision (the CCR decision ) has been made under section 65ECA in relation to the individual’s entitlement to child care rebate in respect of the child and the period; and

                     (d)  the result of the review varies or sets aside the CCB decision (whether or not it also substitutes a new decision);

this Act has effect as if the original application included an application for review of the CCR decision.

19  Paragraph 154(4A)(c)

Omit “or 57F(1)”, substitute “, 57F(1) or 57F(1A)”.



 

Part 2 Application and transitional

20  Application

(1)       The amendments made by this Schedule (other than by items 15 to 18 of this Schedule) apply in relation to care provided by an approved child care service to a child on or after 1 July 2007.

(2)       The amendments made by items 15 to 18 of this Schedule apply in relation to each application made on or after the commencement of those items:

                     (a)  under section 109A, 111 or 142 of the A New Tax System (Family Assistance) (Administration) Act 1999 ; and

                     (b)  for review of a decision relating to an individual’s entitlement to child care benefit.

21  Transitional—service’s application day happens after the period for which child care rebate is applicable

(1)       This item applies if:

                     (a)  one or more sessions of care are provided by an approved child care service to a child during a week that falls wholly or partly in a rebate period (within the meaning of section 84DA of the Family Assistance Act); and

                     (b)  the service’s application day (within the meaning of item 91 of Schedule 1 to the Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007 ) has not happened before the last week that falls wholly or partly in that period.

(2)       The Family Assistance Act has effect in relation to that care as if subsection 84DB(3) of that Act were as follows:

If fee reduction applies, count unreduced amount of fees

             (3)  If fees for child care by an approved child care service have been reduced under Division 1 of Part 8A of the Family Assistance Administration Act, then for the purposes of this section, a reference to the fees for which:

                     (a)  the deceased individual; or

                     (b)  the deceased individual’s partner;

is liable, is taken to be a reference to the fees for which the deceased individual, or the deceased individual’s partner, would have been liable if they had not been so reduced.

22  Transitional—service’s application day happens during the period for which child care rebate is applicable

(1)       This item applies if:

                     (a)  one or more sessions of care are provided by an approved child care service to a child during a week that falls wholly or partly in a rebate period (within the meaning of section 84DA of the Family Assistance Act); and

                     (b)  the service’s application day (within the meaning of item 91 of Schedule 1 to the Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007 ) happens during that period (other than during the last week that falls wholly or partly in that period).

(2)       The Family Assistance Act has effect in relation to any sessions of that care that were provided in a week falling before, or including, the service’s application day as if subsection 84DB(3) of that Act were as follows:

If fee reduction applies, count unreduced amount of fees

             (3)  If fees for child care by an approved child care service have been reduced under Division 1 of Part 8A of the Family Assistance Administration Act, then for the purposes of this section, a reference to the fees for which:

                     (a)  the deceased individual; or

                     (b)  the deceased individual’s partner;

is liable, is taken to be a reference to the fees for which the deceased individual, or the deceased individual’s partner, would have been liable if they had not been so reduced.