1998-99

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

Presented and read a first time

 

 

 

 

 

 

 

 

 

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

 

No.      , 1999

 

(Family and Community Services)

 

 

 

A Bill for an Act to implement A New Tax System by providing assistance to families, and for related purposes

   

   

   

Contents

Part 1—Preliminary                                                                                                              1

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 2

Part 2—Interpretation                                                                                                         3

3............ Definitions.......................................................................................... 3

4............ Approval of use of electronic equipment etc. to do things for the purposes of the family assistance law 7

Part 3—Payment of family assistance                                                                        8

Division 1—Family tax benefit                                                                                 8

Subdivision A—Making claims                                                                               8

5............ Need for a claim.................................................................................. 8

6............ Who can claim..................................................................................... 8

7............ How to claim....................................................................................... 8

8............ Tax file number requirement to be satisfied for claim to be effective... 9

9............ Restrictions on claims for payment of family tax benefit by instalment 10

10.......... Restrictions on claims for payment of family tax benefit for a past period               11

11.......... Restrictions on bereavement claims................................................... 13

12.......... Claim may be withdrawn or varied................................................... 14

Subdivision B—Determination of claims etc.                                                    14

13.......... Secretary must determine claim......................................................... 14

14.......... Restriction on determining claim where income tax assessment not made                14

15.......... Restriction on determining claim where tax file number not provided etc.                15

16.......... Determination of instalment entitlement claim................................... 16

17.......... Determination of past period entitlement claim.................................. 18

18.......... Determination of bereavement entitlement claim............................... 18

19.......... Determination that no entitlement...................................................... 19

20.......... Determination of rate may be based on estimate................................ 19

21.......... When determination is in force.......................................................... 20

22.......... Notice of determination..................................................................... 21

23.......... Payment of family tax benefit by instalment...................................... 21

24.......... Other payments of family tax benefit................................................ 23

25.......... Obligation to notify change of circumstances.................................... 23

26.......... Secretary’s power to request tax file numbers................................... 24

Subdivision C—Variation of determinations                                                     25

27.......... Variation of instalment and past period determinations where failure to provide tax file number             25

28.......... Variation of instalment and past period entitlement determinations where income tax return not lodged  27

29.......... Variation of instalment entitlement determination where failure to provide information           28

30.......... Variation of instalment entitlement determination where failure to notify change of address    29

31.......... Variation of instalment entitlement determination to reflect changes in eligibility     30

32.......... Notice of variation of determination.................................................. 32

Division 2—Payment of family tax benefit advances                                 33

33.......... Determination of entitlement to family tax benefit advance............... 33

34.......... Amount of family tax benefit advance............................................... 34

35.......... Payment of family tax benefit advance.............................................. 35

Division 3—Maternity allowance and maternity immunisation allowance          36

36.......... Need for a claim................................................................................ 36

37.......... Who can claim................................................................................... 36

38.......... How to claim..................................................................................... 36

39.......... Restrictions on claiming.................................................................... 36

40.......... Claim may be withdrawn.................................................................. 38

41.......... Secretary must determine claim......................................................... 38

42.......... Determination of “normal circumstances” entitlement claim.............. 40

43.......... Determination of “bereavement” entitlement claim............................ 41

44.......... Determination that no entitlement...................................................... 41

45.......... When determination is in force.......................................................... 42

46.......... Notice of determination..................................................................... 42

47.......... Payment of maternity allowance or maternity immunisation allowance 42

Division 4—Child care benefit                                                                                44

Subdivision A—Regulations                                                                                   44

48.......... Overview.......................................................................................... 44

49.......... Determinations about eligibility for child care benefit by instalment for care provided by approved child care services in normal circumstances........................................................................ 44

50.......... Determinations about eligibility for child care benefit for past periods for care provided by approved child care services in normal circumstances.................................................................... 45

51.......... Determinations about eligibility for child care benefit for care provided by approved child care services in special circumstances.................................................................................... 45

52.......... Determinations about eligibility for child care benefit for past periods of care provided by registered carers           45

53.......... Claims and determinations about eligibility for amounts of child care benefit where death occurs           46

54.......... Estimates of adjusted taxable income................................................ 46

55.......... Making of payments......................................................................... 46

56.......... Variation etc. of determinations......................................................... 46

57.......... Passing on child care benefit by way of reduced charges etc............ 47

58.......... Record keeping obligations............................................................... 48

59.......... Provision of information to Secretary............................................... 49

60.......... Provision of tax file numbers to Secretary in claims or in documents given together with claims            50

61.......... Secretary’s power to request tax file numbers................................... 51

62.......... Enforcement of information etc. requirements................................... 52

63.......... Other matters..................................................................................... 52

Subdivision B—Offences                                                                                         53

64.......... Provision of instalment statements where individual conditionally eligible for child care benefit by instalment       53

65.......... Provision of instalment statements where approved child care service conditionally eligible for child care benefit by instalment.......................................................................................... 53

Division 5—Payment protection and garnishee orders                            54

66.......... Protection of payments under this Part.............................................. 54

67.......... Effect of garnishee etc. order............................................................. 55

Part 4—Overpayments and debt recovery                                                            56

Division 1—Preliminary                                                                                            56

68.......... Meaning of amount paid to person ................................................... 56

69.......... Special provisions relating to child care benefit................................. 56

Division 2—Amounts recoverable under this Act                                        57

70.......... Debts due to the Commonwealth...................................................... 57

71.......... Debts arising under this Act.............................................................. 57

72.......... Circumstances in which maternity allowance or maternity immunisation allowance not recoverable       60

73.......... Debts arising from AAT stay orders................................................. 61

74.......... Person other than payee obtaining payment of a cheque................... 61

75.......... Debts arising from conviction of person for involvement in contravention of family assistance law by debtor       61

76.......... Data-matching Program (Assistance and Tax) Act debts.................. 62

77.......... Interest payable on debt for failure to enter agreement to pay debt.... 62

78.......... Interest payable on debt for breach of agreement to pay debt............ 64

79.......... Penalty interest rate........................................................................... 66

80.......... Debt from failure to comply with garnishee notice............................ 66

81.......... Overseas application of provisions................................................... 67

82.......... Recoverable debts............................................................................. 68

Division 3—Methods of recovery                                                                         69

83.......... Deductions from family assistance (general)..................................... 69

84.......... Deductions from debtor’s family assistance...................................... 69

85.......... Deductions from group payments made to approved child care service 70

86.......... Time limits on recovery action under sections 84 and 85.................. 71

87.......... Application of income tax refund owed to person............................. 72

88.......... Legal proceedings............................................................................. 73

89.......... Garnishee notice................................................................................ 74

90.......... Time limits on recovery action under section 89............................... 76

91.......... Secretary may allow payment of debt by instalments........................ 77

92.......... Deductions by consent from family assistance of person who is not a debtor          78

93.......... Application of income tax refund owed to another person................ 78

Division 4—Non-recovery of debts                                                                      80

94.......... Meaning of debt ................................................................................ 80

95.......... Secretary may write off debt............................................................. 80

96.......... Power to waive Commonwealth’s right to recover debt.................... 81

97.......... Waiver of debt arising from error...................................................... 82

98.......... Waiver of debt relating to an offence................................................. 82

99.......... Waiver of small debt......................................................................... 83

100........ Waiver in relation to settlements........................................................ 83

101........ Waiver in special circumstances........................................................ 85

102........ Secretary may waive debts of a particular class................................. 86

103........ Determination that penalty interest not payable in relation to particular periods        86

Part 5—Review of decisions                                                                                           88

Division 1—Internal review                                                                                     88

104........ Review initiated by Secretary............................................................ 88

105........ Review initiated by applicant............................................................. 89

106........ Authorised review officers................................................................ 90

107........ Review applications—time limits and withdrawal............................. 90

108........ Secretary may continue payment pending outcome of application for review           91

109........ Notification of further rights of review............................................. 92

Division 2—Review by the Social Security Appeals Tribunal               93

110........ SSAT objective................................................................................. 93

111........ Application for review by SSAT...................................................... 93

112........ Time limit for applying for review by the SSAT............................... 94

113........ Secretary may continue payment pending outcome of application for review           94

114........ SSAT review powers........................................................................ 95

115........ Powers of the SSAT......................................................................... 95

116........ Date of effect of SSAT decisions...................................................... 96

117........ Application requirements.................................................................. 96

118........ Variation of decision before review completed................................. 97

119........ Parties to SSAT review..................................................................... 97

Division 3—Procedures for review by the SSAT                                          99

Subdivision A—Preliminary procedures                                                            99

120........ Procedure on receipt of application for review by SSAT.................. 99

121........ Parties to be given a statement about the decision under review...... 100

122........ Arrangements for hearing of application......................................... 101

123........ Notice of application to person affected by decision....................... 101

Subdivision B—How the SSAT informs itself about the decision under review              102

124........ Submissions to SSAT by parties other than agency heads.............. 102

125........ Submissions to SSAT by agency heads.......................................... 102

126........ SSAT hearings on written submissions only.................................. 103

127........ SSAT hearings without oral submissions by party......................... 103

128........ Evidence on oath or affirmation...................................................... 104

129........ Provision of further information by Secretary................................. 104

130........ Exercise by Secretary of powers under section 155........................ 105

Subdivision C—The hearing                                                                                105

131........ Hearing procedure........................................................................... 105

132........ Hearing in private............................................................................ 105

133........ New evidence.................................................................................. 106

134........ Restrictions on disclosure of information obtained at hearing......... 106

Subdivision D—Other procedural matters                                                       106

135........ Adjournment of SSAT hearings..................................................... 106

136........ Withdrawal of application for review.............................................. 107

137........ Dismissal of an application............................................................. 108

138........ Chairperson for each SSAT hearing............................................... 108

139........ Decision of questions before SSAT................................................ 108

140........ Directions as to procedure for hearings........................................... 109

141........ Costs of review............................................................................... 109

Subdivision E—Notification of decisions                                                          110

142........ Procedure following SSAT decision............................................... 110

Division 4—Review by the Administrative Appeals Tribunal             112

Subdivision A—Right to review by AAT                                                           112

143........ Review of decisions by AAT.......................................................... 112

144........ Variation of decision under section 143 before AAT review completed  113

145........ Review by AAT of other decisions................................................. 113

146........ Variation of decision under section 145 before AAT review completed  115

147........ Settlement of proceedings before the AAT..................................... 116

Subdivision B—Modification of Administrative Appeals Tribunal Act in relation to section 143 review applications                                                                                                        116

148........ Notice of application for review...................................................... 116

149........ Parties to a review by the AAT....................................................... 116

150........ Lodgment of documents with the AAT........................................... 117

151........ Power of AAT to obtain additional information.............................. 117

152........ Operation and implementation of the decision under review........... 117

153........ Failure of party to appear................................................................ 118

Part 6—Provisions relating to information                                                         119

Division 1—Information gathering                                                                    119

154........ Application of Division................................................................... 119

155........ General power to obtain information............................................... 119

156........ Power to obtain information from a person who owes a debt to the Commonwealth               120

157........ Obtaining information about a person who owes a debt to the Commonwealth       120

158........ Obtaining information to verify claims etc...................................... 120

159........ Written notice of requirement.......................................................... 122

160........ Offence: failure to comply with requirement................................... 123

161........ Obligations not affected by State or Territory laws......................... 123

Division 2—Confidentiality                                                                                    124

162........ Operation of Division..................................................................... 124

163........ Protection of personal information.................................................. 124

164........ Offence: unauthorised access to protected information................... 124

165........ Offence: unauthorised use of protected information........................ 125

166........ Offence: soliciting disclosure of protected information................... 125

167........ Offence: offering to supply protected information.......................... 126

168........ Protection of certain documents etc. from production to court etc... 126

169........ Disclosure of information by Secretary........................................... 126

170........ Guidelines for exercise of Secretary’s disclosure powers............... 127

171........ Officer’s declaration........................................................................ 127

Division 3—False statements etc.                                                                        128

Subdivision A—Preliminary                                                                                128

172........ Application of Division................................................................... 128

Subdivision B—Offences                                                                                       128

173........ False statement in connection with claim......................................... 128

174........ False statement to deceive............................................................... 128

175........ False statement or document........................................................... 128

176........ Knowingly obtaining payment where no entitlement...................... 129

177........ Payment knowingly obtained through fraud etc.............................. 129

Subdivision C—Penalties                                                                                      129

178........ Penalty for contravention of Subdivision B.................................... 129

179........ Repayment of family assistance...................................................... 129

180........ Penalty where person convicted of more than one offence.............. 130

Subdivision D—Procedural matters                                                                   130

181........ Joining of charges........................................................................... 130

182........ Particulars of each offence.............................................................. 130

183........ Trial of joined charges..................................................................... 131

184........ Evidentiary effect of Secretary’s certificate..................................... 131

185........ Enforcement of court certificate as judgment................................... 131

Part 7—Liability of corporations, employers and principals for offences               132

Division 1—Interpretation                                                                                      132

186........ State of mind of a person................................................................ 132

187........ Director of a corporation................................................................. 132

188........ Conduct........................................................................................... 132

189........ Offence........................................................................................... 132

Division 2—Proceedings against corporations                                            133

190........ State of mind of corporation............................................................ 133

191........ Conduct of officer of corporation.................................................... 133

Division 3—Proceedings against non-corporations                                  134

192........ State of mind of individual.............................................................. 134

193........ Conduct of employee or agent......................................................... 134

194........ Exclusion of imprisonment as penalty for certain offences............. 134

Part 8—Approval of child care services and registered carers               135

Division 1—Approval of child care services                                                 135

195........ Application for approval................................................................. 135

196........ Approval of child care services....................................................... 136

197........ Conditions for continued approval—compliance with rules and laws 137

198........ Conditions for continued approval—child care places limit not to be exceeded        137

199........ Conditions for continued approval—compliance with conditions imposed by Minister           138

200........ Conditions for continued approval—compliance with conditions imposed by Secretary         138

201........ Consequences of breach of conditions for continued approval....... 138

202........ Procedure for imposing a sanction.................................................. 139

203........ Cancellation..................................................................................... 140

204........ Procedure for cancellation............................................................... 141

205........ Notification of matters affecting eligibility for approval.................. 141

206........ Eligibility rules for child care services............................................. 142

207........ Guidelines for allocation of child care places to approved child care services          143

208........ Secretary to allocate child care places.............................................. 143

209........ Disallowable instruments................................................................ 144

Division 2—Approval as registered carers                                                   145

210........ Application for approval as registered carer.................................... 145

211........ Approval of registered carers.......................................................... 145

212........ Statement that applicant has tax file number.................................... 146

213........ When approval comes into force..................................................... 147

214........ Conditions of continued approval................................................... 147

215........ Consequences of breach of conditions for continued approval....... 148

216........ Procedure for imposing a sanction.................................................. 149

217........ Cancellation..................................................................................... 149

218........ Procedure for cancellation under subsection 217(3)........................ 150

219........ Notification of matters affecting eligibility for approval.................. 151

220........ Disallowable instruments................................................................ 151

Part 9—Other matters                                                                                                      152

221........ General administration of family assistance law.............................. 152

222........ Delegation....................................................................................... 152

223........ Decisions to be in writing............................................................... 152

224........ Decisions taken by computer.......................................................... 152

225........ Notice of decisions.......................................................................... 153

226........ Payment of deductions to Commissioner of Taxation..................... 153

227........ Setting off family assistance entitlement against tax liability........... 154

228........ Setting off arrears against debt owed.............................................. 154

229........ Setting off arrears of person who is not a debtor against a debt...... 155

230........ Judicial notice of certain matters...................................................... 155

231........ Documentary evidence.................................................................... 155

232........ Application of family assistance law to unincorporated bodies....... 156

233........ Annual report.................................................................................. 157

234........ Appropriation.................................................................................. 157

235........ Agreements on administrative arrangements................................... 157

236........ Regulations..................................................................................... 157

A Bill for an Act to implement A New Tax System by providing assistance to families, and for related purposes

The Parliament of Australia enacts: