FAMILY ASSISTANCE LEGISLATION AMENDMENT (CHILD CARE REBATE) BILL 2011

i Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

Contents

1 Short

title

...........................................................................................

2 Commencement

.................................................................................

3 Schedule(s)

........................................................................................

Schedule 1--Amendments to allow weekly payment of child

care rebate

Part 1--Amendments

A New Tax System (Family Assistance) Act 1999

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

Part 2--Application and transitional provisions

Schedule 2--Amendments to be made if the Family Assistance

and Other Legislation Amendment (Child Care

and Other Measures) Act 2011 is passed after

Schedule 1 commences

Part 1--Amendment of the A New Tax System (Family

Assistance) (Administration) Act 1999

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

Part 2--Amendment of the Family Assistance and Other

Legislation Amendment (Child Care and Other

Measures) Act 2011

Family Assistance and Other Legislation Amendment (Child Care and

Other Measures) Act 2011

Part 3--Other consequential amendments

Family Assistance Legislation Amendment (Child Care Management

System and Other Measures) Act 2007

Schedule 3--Amendments to be made if the Family Assistance

and Other Legislation Amendment (Child Care

and Other Measures) Act 2011 already passed

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

Family Assistance Legislation Amendment (Child Care Management

System and Other Measures) Act 2007

Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011 1

A Bill for an Act to amend the law in relation to

child care benefit and child care rebate, and for

related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Family Assistance Legislation

Amendment (Child Care Rebate) Act 2011.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

2 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

2011

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 to 3

and anything in

this Act not

elsewhere covered

by this table

The day this Act receives the Royal Assent.

2. Schedule 1,

items 1 to 12

The day after this Act receives the Royal

Assent.

3. Schedule 1,

item 13

The day after this Act receives the Royal

Assent.

However, if Schedule 5 to the Family

Assistance and Other Legislation

Amendment (Child Care and Other

Measures) Act 2011 commences on or

before that day, the provision(s) do not

commence at all.

4. Schedule 1,

items 14 to 21

At the same time as the provision(s) covered

by table item 2.

5. Schedule 1,

item 22

The day after this Act receives the Royal

Assent.

However, if Part 1 of Schedule 1 to the

Family Assistance and Other Legislation

Amendment (Child Care and Other

Measures) Act 2011 commences on or

before that day, the provision(s) do not

commence at all.

6. Schedule 1,

item 23

At the same time as the provision(s) covered

by table item 2.

7. Schedule 1,

item 24

The day after this Act receives the Royal

Assent.

However, if Part 1 of Schedule 1 to the

Family Assistance and Other Legislation

Amendment (Child Care and Other

Measures) Act 2011 commences on or

before that day, the provision(s) do not

commence at all.

8. Schedule 1,

items 25 to 34

At the same time as the provision(s) covered

by table item 2.

Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

9. Schedule 1,

item 35

The day after this Act receives the Royal

Assent.

However, if Part 1 of Schedule 1 to the

Family Assistance and Other Legislation

Amendment (Child Care and Other

Measures) Act 2011 commences on or

before that day, the provision(s) do not

commence at all.

10. Schedule 1,

items 36 to 39

At the same time as the provision(s) covered

by table item 2.

11. Schedule 1,

item 40

The day after this Act receives the Royal

Assent.

However, if Part 1 of Schedule 1 to the

Family Assistance and Other Legislation

Amendment (Child Care and Other

Measures) Act 2011 commences on or

before that day, the provision(s) do not

commence at all.

12. Schedule 1,

items 41 and 42

At the same time as the provision(s) covered

by table item 2.

13. Schedule 1,

item 43

The day after this Act receives the Royal

Assent.

However, if Schedule 5 to the Family

Assistance and Other Legislation

Amendment (Child Care and Other

Measures) Act 2011 commences on or

before that day, the provision(s) do not

commence at all.

14. Schedule 1,

items 44 to 54

At the same time as the provision(s) covered

by table item 2.

15. Schedule 1,

item 55

The day after this Act receives the Royal

Assent.

However, if Schedule 5 to the Family

Assistance and Other Legislation

Amendment (Child Care and Other

Measures) Act 2011 commences on or

before that day, the provision(s) do not

4 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

2011

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

commence at all.

16. Schedule 1,

items 56 to 61

At the same time as the provision(s) covered

by table item 2.

17. Schedule 1,

item 62

The day after this Act receives the Royal

Assent.

However, if Schedule 5 to the Family

Assistance and Other Legislation

Amendment (Child Care and Other

Measures) Act 2011 commences on or

before that day, the provision(s) do not

commence at all.

18. Schedule 1,

items 63 to 67

At the same time as the provision(s) covered

by table item 2.

19. Schedule 1,

items 68 and 69

The day after this Act receives the Royal

Assent.

However, if Part 1 of Schedule 1 to the

Family Assistance and Other Legislation

Amendment (Child Care and Other

Measures) Act 2011 commences on or

before that day, the provision(s) do not

commence at all.

20. Schedule 1,

item 70

At the same time as the provision(s) covered

by table item 2.

21. Schedule 1,

item 71

The day after this Act receives the Royal

Assent.

However, if Part 1 of Schedule 1 to the

Family Assistance and Other Legislation

Amendment (Child Care and Other

Measures) Act 2011 commences on or

before that day, the provision(s) do not

commence at all.

22. Schedule 1,

item 72

At the same time as the provision(s) covered

by table item 2.

23. Schedule 1,

items 73 to 75

The day after this Act receives the Royal

Assent.

However, if Part 1 of Schedule 1 to the

Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

Family Assistance and Other Legislation

Amendment (Child Care and Other

Measures) Act 2011 commences on or

before that day, the provision(s) do not

commence at all.

24. Schedule 1,

items 76 to 81

At the same time as the provision(s) covered

by table item 2.

25. Schedule 2,

Part 1

Immediately after the commencement of

Part 1 of Schedule 1 to the Family

Assistance and Other Legislation

Amendment (Child Care and Other

Measures) Act 2011.

26. Schedule 2,

Part 2

At the same time as Part 1 of Schedule 1 to

the Family Assistance and Other Legislation

Amendment (Child Care and Other

Measures) Act 2011 commences.

27. Schedule 2,

Part 3

At the same time as the provision(s) covered

by table item 25.

28. Schedule 3

At the same time as the provision(s) covered

by table item 2.

Note:

This table relates only to the provisions of this Act as originally

enacted. It will not be amended to deal with any later amendments of

this Act.

(2) Any information in column 3 of the table is not part of this Act.

Information may be inserted in this column, or information in it

may be edited, in any published version of this Act.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

concerned, and any other item in a Schedule to this Act has effect

according to its terms.

Schedule 1 Amendments to allow weekly payment of child care rebate

Part 1 Amendments

6 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

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Schedule 1--Amendments to allow weekly

payment of child care rebate

Part 1--Amendments

A New Tax System (Family Assistance) Act 1999

1 Before section 57EA

Insert:

57EAA Eligibility for child care rebate--for a week

(1) An individual is eligible for child care rebate for a week in respect

of a child if:

(a) a determination is in force under section 50F of the Family

Assistance Administration Act during the week to the effect

that the individual is conditionally eligible for child care

benefit by fee reduction in respect of the child; and

(b) one or more sessions of care are provided by one or more

approved child care services to the child during the week;

and

following is the weekly limit of hours applicable to the

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; and

(d) the Secretary has calculated an amount of fee reduction under

subsection 50Z(1) of the Family Assistance Administration

Act in respect of the individual and the child for at least one

of those sessions of care provided in the week; and

(e) the amount referred to in paragraph (d) is:

(i) an amount greater than a nil amount; or

(ii) a nil amount because the CCB % applicable to the

individual is zero %; and

(f) the individual has made an election, under paragraph

65EAAAA(1)(a) or (b) of the Family Assistance

Amendments to allow weekly payment of child care rebate Schedule 1

Amendments Part 1

Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

Administration Act, to have child care rebate paid weekly

and the election is in effect for the week.

Note 1:

If one of the paragraph (c) limits applies, the individual satisfies the

paragraph (c) condition, even if the individual has not used child care

for the child during the week up to the full extent of the limit.

Note 2:

For the purposes of paragraph (d), it does not matter if the amount is

later recalculated under subsection 50ZA(1) of the Family Assistance

Administration Act.

(2)

If:

(a) a limit mentioned in paragraph (1)(c) does not apply under a

determination in force under section 50H of the Family

Assistance Administration Act for the individual and the

child in the week; but

(b) the circumstances in which such a limit applies were

applicable to the individual in that week;

then that limit is taken, for the purposes of that paragraph, to be the

weekly limit of hours applicable to the individual in the week.

Note:

If the only limit applicable to the individual in the week was the limit

of 24 hours under subsection 53(3), then the condition in

paragraph (1)(c) will not be satisfied.

(3) The 50 hour limit is taken, for the purposes of paragraph (1)(c), to

be applicable to the individual in the week if it would have been

applicable to the individual in the week but for the fact that the

individual failed to meet the requirements of paragraph 17A(1)(b)

in relation to the week.

2 At the end of subsection 57EA(1)

Add:

; and (f) the individual has made an election, under paragraph

65EAAAA(1)(c) of the Family Assistance Administration

Act, to have child care rebate paid quarterly and the election

is in effect for the quarter.

3 Before Subdivision A of Division 4A of Part 4

Insert:

Schedule 1 Amendments to allow weekly payment of child care rebate

Part 1 Amendments

8 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

2011

Subdivision AA--Child care rebate for a week

84AAA Amount of the child care rebate--for a week

If the Secretary calculates, under section 65EAAA of the Family

Assistance Administration Act, the amount of child care rebate

applicable in respect of an individual and a child for care provided

for the child by an approved child care service in a week, the

amount is worked out as follows:

Method statement

Step 1. Work out the total amount of the individual's approved

child care fees for care provided for the child by the

approved child care service in the week.

Step 2. Work out the total amount (if any) of so much of the fee

reductions:

(a)

calculated under subsection 50Z(1) of the Family

Assistance Administration Act; or

(b)

recalculated under subsection 50ZA(1) of that Act;

in respect of the individual and the child as are

attributable to the care provided for the child by the

approved child care service in the week.

Step 3. Work out the total amount of Jobs Education and

Training (JET) Child Care fee assistance (if any) that the

individual is eligible to receive for the child that is

attributable to the care provided for the child by the

approved child care service in the week.

Step 4. Work out the lesser of the following amounts for the

child:

(a)

the amount worked out using the formula:

50%

Step 1 amount

Step 2 amount

Step 3 amount

�

Amendments to allow weekly payment of child care rebate Schedule 1

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Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

(b)

the amount worked out by subtracting from the

child care rebate limit for the income year in which

the week began, the total of the child care rebate (if

any) applicable in respect of the individual and the

child for each earlier week that falls wholly in that

income year (whether paid weekly or quarterly).

Step 5. The amount of child care rebate applicable in respect of

the individual and the child for care provided for the

child by the approved child care service in the week is:

(a)

the step 4 amount reduced by the reduction

percentage; or

(b)

if the Secretary determines under section 84AAD

that the step 4 amount is not to be reduced--the

step 4 amount.

84AAB Component of formula--approved child care fees

General rule--approved child care fees for care provided for a

child in a week

(1) For the purposes of section 84AAA, the amount of an individual's

approved child care fees for care provided for a child by an

approved child care service in a week is the amount of fees for

which:

(a) the individual; or

(b) the individual's partner during the week;

is liable for the care. For this purpose, disregard the weekly limit of

hours applicable to the individual in the week.

Special rule if the week is also a week for the individual's partner

for the child

(2) However, the individual's approved child care fees for care

provided for the child in the week do not include fees that the

individual's partner is liable to pay if:

(a) paragraphs 57EAA(1)(b) to (e) (as affected by subsections

57EAA(2) and (3)) are satisfied for the partner and the child

for the week; or

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10 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

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(b) the week is a base week for the individual's partner and the

child under section 84AC (partner receiving child care rebate

quarterly).

Disregard amounts passed on to reduce fees

(3) For the purposes of this section, disregard any amount passed on to

the individual under section 219B or section 219EA of the Family

Assistance Administration Act for the care.

84AAC Component of formula--reduction percentage

(1) For the purposes of section 84AAA, the reduction percentage is:

(a)

15%;

(b) if the Secretary specifies a percentage in an instrument under

subsection (2)--that percentage.

(2) The Secretary may, by legislative instrument, specify a percentage

for the purposes of paragraph (1)(b).

84AAD Component of formula--Secretary determines that step 4

amount not to be reduced

(1) The Secretary may determine in writing that, for the purposes of

step 5 of the method statement in section 84AAA as it applies in

calculating the amount of child care rebate applicable in respect of

an individual and a child specified in the determination, the step 4

amount is not to be reduced.

(2) A determination under subsection (1) must specify either:

(a) the week or weeks to which it is to apply; or

(b) that it is to apply to weeks beginning on or after a specified

day.

The determination may apply to a week or weeks beginning before

the determination is made.

(3) The Secretary may only make a determination under subsection (1)

in respect of an individual and a child:

(a) if the amount of fee reduction calculated by the Secretary

under subsection 50Z(1) of the Family Assistance

Administration Act in respect of the individual and the child

for sessions of care provided in a week to which the

Amendments to allow weekly payment of child care rebate Schedule 1

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Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

determination applies is a nil amount because the CCB %

applicable to the individual is zero %; or

(b) in other circumstances of a kind determined by the Secretary,

by legislative instrument.

4 Section 84AA (method statement, step 4, paragraph (b))

After "for each earlier quarter in the income year", insert "(whether paid

weekly or quarterly".

5 Subsection 84AB(2)

Repeal the subsection, substitute:

(2) However, the individual's approved child care fees for the week do

not include fees that the individual's partner is liable to pay if:

(a) the base week is also a base week for the individual's partner

and the child; or

(b) paragraphs 57EAA(1)(b) to (e) (as affected by subsections

57EAA(2) and (3)) are satisfied for the partner and the child

for the week (partner receiving child care rebate weekly).

6 Subsections 84AB(3), 84B(3) and 84DB(3)

After "219B", insert "or section 219EA".

7 Section 84E

Repeal the section, substitute:

84A Component of each formula--Jobs Education and Training

(JET) Child Care fee assistance

For the purposes of sections 84AAA, 84AA, 84A and 84DA, Jobs

Education and Training (JET) Child Care fee assistance, in

relation to a week, means the payment of that name that is paid by

the Commonwealth to the individual in respect of child care

provided by one or more approved child care services to the child

in the week.

Note:

The individual may be a deceased individual (see step 4 of the method

statement in section 84DA).

8 Subsection 84F(1)

After "sections", insert "84AAA,".

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12 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

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

1999

9 Section 3 (after paragraph (h) of the definition of civil

penalty provision)

Insert:

(ha)

subsection

219EA(2);

(hb) subsection 219EB(1) or (5);

10 Section 3 (after paragraph (r) of the definition of civil

penalty provision)

Insert:

(sa)

subsection

219QE(1);

11 Subparagraph 49C(1)(a)(ii)

Omit "and (4),", substitute ", (4) and (6),".

12 At the end of section 49C

Add:

(5) The information or documents required by the Secretary under

paragraph (1)(a) may include information or documents relevant

to:

(a) whether the claimant is eligible for child care rebate; and

(b) the amount of child care rebate applicable in respect of the

claimant; and

child care rebate to the claimant.

(6) A claim for payment of child care benefit by fee reduction for care

provided by an approved child care service to a child will be

effective even if the claimant does not make an election under

section 65EAAAA in relation to the care (weekly or quarterly

payments of child care rebate).

13 Before Subdivision AA of Division 4AA of Part 3

Insert:

Amendments to allow weekly payment of child care rebate Schedule 1

Amendments Part 1

Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

Subdivision AAA--Election to have child care rebate paid in

various ways

65EAAAA Individual may elect to have child care rebate paid in

various ways

(1) An individual may give the Secretary notice in accordance with

subsection (2) electing to have child care rebate in respect of the

individual and a child for care provided for the child in an income

year paid in one of the following ways:

(a) weekly into a bank account maintained by the individual

alone or jointly or in common with someone else;

(b) weekly to one or more approved child care services;

alone or jointly or in common with someone else.

Note:

Child care rebate is calculated on the basis of reports given by

approved child care services in relation to each week of care under

section 219N. A report for care provided in one week may be given up

to 2 weeks later. A service may therefore give a report for 2 weeks

together. For this reason, payments of child care rebate to an

individual for 2 successive weeks may be made together. The effective

result is then a fortnightly payment.

(2) A notice under subsection (1):

(a) must be given in the form, and in the manner or way,

approved by the Secretary; and

(b) must be given before the beginning of the income year to

which the notice relates unless:

(i) the individual makes a claim after the beginning of the

income year for payment of child care benefit by fee

reduction for care provided for the child by one or more

approved child care services; or

(ii) the Secretary makes a determination under

subsection (4).

(3) If an individual gives notice under subsection (1) when making a

claim after the beginning of an income year for payment of child

care benefit by fee reduction, the election is taken to relate to the

income year in which the claim is made.

(4) The Secretary may determine, in writing, that an individual may

give notice under subsection (1) after the income year to which the

Schedule 1 Amendments to allow weekly payment of child care rebate

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14 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

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notice relates has begun, if the Secretary is satisfied that there are

exceptional circumstances justifying the determination.

Note:

A determination of entitlement to child care rebate will be made for

the income year under Subdivision A of this Division. So if a person is

entitled to child care rebate, does not elect to have it paid weekly or

quarterly and has not been receiving child care rebate weekly or

quarterly as a result of a previous election (see section 65EAAAC),

child care rebate will be paid after the end of the income year.

65EAAAB Period in which election has effect

(1)

If:

(a) a notice is given under paragraph 65EAAAA(1)(a) or (b) to

have child care rebate paid weekly; and

(b) the notice is given before the income year to which it relates

has begun;

the election takes effect on the first Monday in the income year and

continues in effect for each week all or part of which falls in the

income year.

(2)

If:

(a) a notice is given under paragraph 65EAAAA(1)(c) to have

child care rebate paid quarterly; and

(b) the notice is given before the income year to which it relates

has begun;

the election takes effect on the first day of the first quarter in the

income year and continues in effect for each quarter which falls in

the income year.

(3) If notice is given under subsection 65EAAAA(1) after the income

year to which it relates has begun:

(a) the Secretary must determine in writing the day on which the

election is to take effect; and

(b) the election continues in effect:

(i) if the notice is given under paragraph 65EAAAA(1)(a)

or (b) to have child care rebate paid weekly--for each

week all or part of which falls in the income year; and

(ii) if the notice is given under paragraph 65EAAAA(1)(c)

to have child care rebate paid quarterly--for each

quarter which falls in the income year.

Amendments to allow weekly payment of child care rebate Schedule 1

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Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

65EAAAC Where no election made for an income year

If an individual does not give notice under subsection

65EAAAA(1) for an income year, child care rebate in respect of

the individual and the child for care provided during the income

year is to be paid:

(a) if child care rebate was paid in respect of the individual and

the child in relation to the immediately preceding income

year--in the same way as it was paid in relation to that year;

and

(b) otherwise--for the income year.

Subdivision AAB--Weekly payments of child care rebate

65EAAA Weekly payments of child care rebate

If:

(a) the Secretary is satisfied that an individual is eligible under

subsection 57EAA(1) of the Family Assistance Act for child

care rebate for a week in respect of a child; and

(b) the Secretary has calculated an amount of fee reduction under

subsection 50Z(1) in respect of the individual and the child

for a session or sessions of care provided by an approved

child care service in the week;

the Secretary must calculate the amount of the rebate which the

Secretary considers is applicable in respect of the individual and

the child for care provided for the child by the approved child care

service in the week.

Note 1:

The individual will not be eligible to have child care rebate paid

weekly unless the individual has made an election under paragraph

65EAAAA(1)(a) or (b) to have rebate paid weekly.

Note 2:

The calculation is made in accordance with section 84AAA of the

Family Assistance Act.

Note 3:

The amount of fee reduction calculated under subsection 50Z(1) may

be a nil amount (see section 4A).

65EAAB Where individual elects to have child care rebate paid

weekly to approved child care service

(1) This section applies if:

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16 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

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(a) the Secretary calculates an amount of child care rebate under

section 65EAAA which the Secretary considers is applicable

in respect of an individual and a child for care provided for

the child by an approved child care service in a week; and

(b) the individual has made an election under paragraph

65EAAAA(1)(b) that is in effect for the week to have child

care rebate paid weekly to the approved child care service.

(2) The Secretary must notify the approved child care service of the

amount calculated.

(3) The notice must be given in the form, and in the manner or way,

approved by the Secretary.

(4) Without limiting subsection (3), the Secretary may approve

notification of the amount by making the information available to

the approved child care service using an electronic interface. In

that case, the approved child care service is taken to have been

given the notice on the day on which the information is made

available.

Note:

The amount is then paid to the approved child care service under

subsection 219QC(1).

65EAAC Where individual elects to have child care rebate paid

weekly into own bank account

(1) This section applies if:

(a) the Secretary calculates an amount of child care rebate under

section 65EAAA which the Secretary considers is applicable

in respect of an individual and a child for care provided for

the child by an approved child care service in a week; and

(b) the individual has made an election under paragraph

65EAAAA(1)(a) that is in effect for the week to have child

care rebate paid weekly into a bank account nominated and

maintained by the individual.

(2) The Secretary must pay the amount of child care rebate calculated

under section 65EAAA to the individual, at such time as the

Secretary considers appropriate, by paying it to the credit of the

bank account.

Amendments to allow weekly payment of child care rebate Schedule 1

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Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

(3) The Secretary may direct that the whole or a part of an amount that

is to be paid under this section is to be paid in a different way from

that provided for by subsection (2). If the Secretary gives the

direction, the amount is to be paid in accordance with the direction.

(4) The Secretary must give notice to the individual:

(a) identifying the week or weeks to which the notice relates (the

rebate period); and

(b)

stating:

(i) the child's name; and

(ii) the amount of child care rebate calculated in respect of

the rebate period (the rebate amount); and

(iii) the total amount of the individual's approved child care

fees for care provided for the child by the approved

child care service during the rebate period, worked out

under step 1 of the method statement in section 84AAA

of the Family Assistance Act when calculating the

rebate amount; and

(iv) the total amount (if any) of fee reductions for care

provided for the child by the approved child care service

during the rebate period, worked out under step 2 of the

method statement in section 84AAA of the Family

Assistance Act when calculating the rebate amount.

(5) The calculation and payment of an amount of child care rebate

applicable under this section is not ineffective by reason only that

any, or all, of the requirements of subsection (4) are not complied

with.

(6) This section is subject to:

(a) section 65EAAF; and

(b) section 65EAB; and

(d) Division 3 of Part 8B.

65EAAD Revising a calculation of weekly child care rebate

The Secretary may recalculate an amount of child care rebate

which the Secretary considers is applicable:

(a) under section 65EAAA; or

(b) under a previous application of this section;

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18 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

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in respect of an individual and a child for care provided for the

child by an approved child care service in a week, so long as a

determination of entitlement has not been made under Subdivision

A in respect of the individual and child for the income year in

which all or part of the week falls.

65EAAE If weekly payment is to an approved child care service,

notice of revised calculation must be given to the service

(1) This section applies if:

(a) the Secretary, under section 65EAAD, recalculates an

amount of child care rebate which the Secretary considers is

applicable in respect of an individual and a child for care

provided for the child by an approved child care service in a

week; and

(b) the individual has made an election under paragraph

65EAAAA(1)(b) that is in effect for the week to have child

care rebate paid weekly to the approved child care service.

(2) Subject to subsection (3), the Secretary must notify the approved

child care service of the recalculated amount.

(3) The Secretary need not notify the approved child care service of

the recalculated amount if the amount is reduced, and the

recalculation is for a reason other than the substitution or

withdrawal by the service of a report given under section 219N.

(4) The notice must be given in the form, and in the manner or way,

approved by the Secretary.

(5) Without limiting subsection (4), the Secretary may approve

notification of the amount by making the information available to

the approved child care service using an electronic interface. In

that case, the approved child care service is taken to have been

given the notice on the day on which the information is made

available.

Note:

The effect of a recalculation on payments to an approved child care

service is dealt with in subsection 219QC(2) and section 219QD.

65EAAF Effect of revised calculation--payment to the individual

(1) This section applies if:

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Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

(a) the Secretary, under section 65EAAD, recalculates an

amount of child care rebate which the Secretary considers is

applicable in respect of an individual and a child for care

provided for the child by an approved child care service in a

week; and

(b) the individual has made an election under paragraph

65EAAAA(1)(a) that is in effect for the week to have child

care rebate paid weekly into a bank account nominated and

maintained by the individual.

(2) If the recalculation increases the amount of child care rebate

applicable in respect of the individual and the child for care

provided for the child by the service in the week, then subsections

65EAAC(2), (3) and (6) apply to the increase as if the increase

were the amount applicable under section 65EAAA.

(3) If the recalculation decreases the amount of child care rebate

applicable in respect of the individual and the child for care

provided for the child by the service in the week, the Secretary

may set off all or a part of the decrease against an amount of child

care rebate applicable under this Subdivision or Subdivision AA

for that or any other approved child care service in respect of the

individual and the child for a later period in the same income year.

(4) The Secretary must give notice to the individual:

(a) identifying the week or weeks to which the notice relates (the

rebate period); and

(b)

stating:

(i) the child's name; and

(ii) the amount of child care rebate as recalculated under

this section in respect of the rebate period (the rebate

amount); and

(iii) the total amount of the individual's approved child care

fees for care provided for the child by the approved

child care service during the rebate period, worked out

under step 1 of the method statement in section 84AAA

of the Family Assistance Act when recalculating the

rebate amount; and

(iv) the total amount (if any) of fee reductions for care

provided for the child by the approved child care service

during the rebate period, worked out under step 2 of the

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20 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

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method statement in section 84AAA of the Family

Assistance Act when recalculating the rebate amount.

(5) The recalculation and payment of an amount of child care rebate

applicable under this section is not ineffective by reason only that

any, or all, of the requirements of subsection (4) are not complied

with.

14 Subsection 65EAA(4)

Repeal the subsection, substitute:

(4) This section is subject to:

(a) section 65EAAF; and

(b) section 65EAB; and

(d) Division 3 of Part 8B.

15 Subsection 65EAB(3)

Omit "under this Subdivision in respect of the individual and the child

for a later quarter", substitute "under this Subdivision or Subdivision

AAB in respect of the individual and the child for a later period".

16 Subsection 65EF(2A)

Repeal the subsection, substitute:

(2A) If the determination of entitlement is made under section 65EA, the

Secretary must reduce the amount to be paid under subsection (1)

by:

(a) the amount of any child care rebate already paid under

Subdivision AAB in respect of the individual and the child

for a week included in the income year; and

(b) the amount of any child care rebate already paid under

Subdivision AA in respect of the individual and the child for

a quarter included in the income year.

17 Before paragraph 65EF(2B)(c)

Insert:

(ca) under Subdivision AAB in respect of the individual and the

child for a week all or part of which falls in the income year;

and

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Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

18 Subsection 65EF(2E)

Repeal the subsection, substitute:

(2E) However, the Secretary must reduce the amount to be paid under

subsection (2D) by the amount of any child care rebate already

paid:

(a) under Subdivision AAB in respect of the deceased individual

and the child for a week wholly or partly included in the

period; and

(b) under Subdivision AA in respect of the deceased individual

and the child for a quarter wholly or partly included in the

period.

19 After paragraph 66(1)(f)

Insert:

(faa) payments under section 219QC or subsection 219QD(2) in

respect of child care rebate;

20 Paragraph 66(2)(aa)

After "65EAA(3)", insert ", 65EAAC(3)".

21 After paragraph 66(2)(aa)

Insert:

(aaa) subsection 65EAAF(3) (about setting off a decrease in a

weekly amount of child care rebate against rebate for a later

period); and

22 Paragraph 66(2)(cb)

Omit "payments under section 219Q or subsection 219QA(2) in respect

of fee reduction or payments of enrolment advances under

section 219RA", substitute "various payments".

23 After paragraph 66(2)(cb)

Insert:

(cba) section 219QD (setting off a recalculated weekly payment of

child care rebate against various payments);

24 Paragraph 66(2)(cc)

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22 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

2011

Omit "payments under section 219Q or subsection 219QA(2) in respect

of fee reduction or payments of enrolment advances under

section 219RA", substitute "various payments".

25 After subsection 68(1A)

Insert:

(1B) In the case of a person who has made an election under paragraph

65EAAAA(1)(b) to have child care rebate in respect of a child paid

weekly to an approved child care service, the amount of child care

rebate paid to the person in a week for which the election is in

effect consists of the amount that the service is required, under

section 219EA, to pass on to the individual for care provided for

the child in the week.

26 Section 70

Omit "or subsection 219QA(2),", substitute ", subsection 219QA(2),

section 219QC or subsection 219QD(2),".

Note:

The heading to section 71 is altered by inserting ", child care rebate" after "child care

benefit".

27 After paragraph 71B(1)(c)

Insert:

or (d) an approved child care service is required under

section 219EA to pass on an amount to an individual (the

recipient) in respect of care provided for a child by the

service in a week, but the recipient was not entitled to child

care rebate in respect of the week;

28 Paragraph 71B(3)(a)

Repeal the paragraph, substitute:

(a) one of the following payments is made to a financial

institution for the credit of an account kept with the

institution (the incorrect account):

(i) a payment under section 219Q or subsection 219QA(2)

in respect of fee reduction;

(ii) a payment under section 219QC or subsection

219QD(2) in respect of child care rebate;

(iii) a payment under section 219RA of an enrolment

advance; and

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Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

29 Paragraph 71CAA(1)(a)

After "by way of child care rebate", insert "for a week under

Subdivision AAB or".

30 Subparagraph 71CAA(4)(a)(i)

After "for an income year,", insert "for a week in an income year,".

31 Paragraph 71CAB(1)(a)

Repeal the paragraph, substitute:

(a) an amount (the received amount) has been paid to an

individual by way of child care rebate in respect of a period

during which the individual is conditionally eligible for child

care benefit by fee reduction in respect of a child; and

(aa) the amount is paid under Subdivision AAB of Division 4AA

of Part 3 (weekly payment), Subdivision AA of that Division

(quarterly payment), or both Subdivision AAB and

Subdivision AA of that Division (both weekly and quarterly

payment during the period); and

Note:

The heading to subsection 71CAB(1) is replaced by the heading "Overpayment of

rebate arising from CCB by fee reduction--for a week or a quarter".

32 After section 71CA

Insert:

71CB Debts arising in respect of child care rebate payment not

remitted--debt owed by service

If an approved child care service does not remit to the Secretary an

amount that the service is required to remit under section 219QE

(weekly payments of child care rebate that it is not reasonably

practicable for the service to pass on), the amount is a debt due to

the Commonwealth by the service.

33 Subparagraph 71G(1)(a)(ii)

Repeal the subparagraph, substitute:

(ii) such an amount would be paid, but for a set off under

subsection 82(2) or section 219QA, 219QD, 219RC or

219RE; and

34 After subsection 71G(2)

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24 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

2011

Insert:

Weekly payments of child care rebate

(2A)

If:

(a)

either:

(i) an amount is paid under section 219QC or subsection

219QD(2) to a person that is an approved child care

service (weekly payments of child care rebate); or

(ii) such an amount would be paid, but for a set off under

subsection 82(2) or section 219QA, 219QD, 219RC or

219RE; and

(b) the service's approval is suspended or cancelled under this

Act before a period of care in respect of which the payment

was made;

so much of the amount of the child care rebate paid as relates to

that period of care is a debt due to the Commonwealth by the

service immediately before its approval was suspended or

cancelled.

(2B)

If:

(a) an amount is required to be set off under subsection

219QD(3) against the payment of another amount to a person

that is an approved child care service (payment where

recalculation reduces the amount of child care rebate); and

(b) the service's approval is suspended or cancelled under this

Act; and

amount under subsection 219QD(3) by the day the service's

approval is suspended or cancelled;

the amount is a debt due to the Commonwealth by the service

immediately before its approval was suspended or cancelled.

Note 1: The heading to section 71G is replaced by the heading "Debts arising where child care

services approval is suspended or cancelled--debt owed by service".

Note 2: The following heading to subsection (1) is inserted "Child care benefit--fee reduction".

Note 3: The following heading to subsection (3) is inserted "Enrolment advances".

35 After paragraph 82(2)(a)

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Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

(aa) setting off the amount of the debt against one or more

payments under section 219QC or subsection 219QD(2) in

respect of child care rebate;

36 Subsection 82(3) (definition of debt)

Omit "71CA,".

37 Subsection 82(3) (definition of debt)

After "71CAB,", insert "71CA, 71CB,".

38 Subsection 93A(6) (paragraphs (b) to (bb) of the definition

of family assistance payment)

Repeal the paragraphs, substitute:

(b) a payment under section 219Q or subsection 219QA(2)

(payments in respect of fee reduction); or

(ba) a payment under section 219QC or subsection 219QD(2)

(payments in respect of child care rebate); or

(bb) a payment of an enrolment advance under section 219RA; or

(bc) a payment under section 219RD (business continuity

payments); or

(bd) a payment of child care rebate under section 65EAAC

(including as that section applies because of subsection

65EAAF(2)); or

(be) a payment of child care rebate under section 65EAA

(including as that section applies because of subsection

65EAB(2)); or

(bf) a payment of child care rebate under section 65EF; or

39 Paragraphs 104(d) to (da)

Repeal the paragraphs, substitute:

(d) a decision by the Secretary under section 219Q or subsection

219QA(2) to pay an amount in respect of fee reduction; or

(da) a decision by the Secretary under section 219QC or

subsection 219QD(2) to pay an amount in respect of child

care rebate; or

(db) a decision under section 219RD (business continuity

payments); or

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26 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

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(dc) a calculation of an amount of child care rebate for a week

under section 65EAAA, or a recalculation of such an amount

under section 65EAAD; or

(dd) a decision by the Secretary under subsection 65EAAAA(4)

(allowing election after beginning of income year to be paid

child care rebate weekly or quarterly) or under subsection

65EAAAB(3) (day on which new payment arrangement

begins); or

(de) a calculation of an amount of child care rebate for a quarter

under section 65EAA, or a recalculation of such an amount

under section 65EAB; or

40 Paragraphs 108(2)(da) to (db)

Repeal the paragraphs, substitute:

(da) a decision by the Secretary under section 219Q or subsection

219QA(2) to pay an amount in respect of fee reduction; or

(db) a decision by the Secretary under section 219QC or

subsection 219QD(2) to pay an amount in respect of child

care rebate; or

(dc) a decision under section 219RD (business continuity

payments); or

(dd) a calculation of an amount of child care rebate for a week

under section 65EAAA, or a recalculation of such an amount

under section 65EAAD; or

(de) a decision by the Secretary under subsection 65EAAAA(4)

(allowing election after beginning of income year to be paid

child care rebate weekly or quarterly) or under subsection

65EAAAB(3) (day on which new payment arrangement

begins); or

(df) a calculation of an amount of child care rebate for a quarter

under section 65EAA, or a recalculation of such an amount

under section 65EAB; or

41 Subparagraph 108(2)(fa)(i)

Omit "paragraphs 200(1)(a) to (h)", substitute "paragraphs 200(1)(a) to

(i)".

42 Subparagraph 111(2)(a)(viii)

Omit "57G(2)", substitute "57G(3) or 57G(5)".

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Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

43 After subparagraph 111(2)(a)(ix)

Insert:

(ixa)

paragraph

65EAAAA(2)(a);

(ixb) subsection 65EAAB(3) or 65EAAE(4);

44 After subparagraph 111(2)(a)(xiv)

Insert:

(xiva)

subsection

219QE(3);

(xivb)

paragraph

219QE(5)(a);

45 Paragraph 154(4A)(c)

After "subsection", insert "57EAA(1),".

46 Subparagraph 154(4A)(d)(i)

After "under", insert "Subdivision AAB or".

47 After subparagraph 173(1)(d)(v)

Insert:

(via) affects, or might affect, eligibility for child care rebate

under subsection 57EAA(1) of the Family Assistance

Act, or the amount of child care rebate applicable under

Subdivision AAB of Division 4AA of Part 3; or

48 Paragraph 175(a)

After "other than child care rebate", insert "for a week under

Subdivision AAB or".

49 Paragraph 175AA(a)

After "child care rebate", insert "for a week under Subdivision AAB

or".

50 Subparagraph 176(1)(a)(iii)

Repeal the subparagraph, substitute:

(iii) in the case of an approved child care service--an

amount is paid under section 219Q or subsection

219QA(2) in respect of fee reduction, under

section 219QC or subsection 219QD(2) in respect of

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28 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

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child care rebate or under section 219RA as an

enrolment advance; or

51 After paragraph 176(2)(a)

Insert:

(aa) the element of the offence that a payment in respect of child

care rebate is paid to the service under section 219QC or

subsection 219QD(2); and

52 Subparagraph 176(3)(d)(iii)

Repeal the subparagraph, substitute:

(iii) in the case of an approved child care service--an

amount is paid under section 219Q or subsection

219QA(2) in respect of fee reduction, under

section 219QC or subsection 219QD(2) in respect of

child care rebate or under section 219RA as an

enrolment advance; or

53 After paragraph 176(4)(a)

Insert:

(aa) the element of the offence that a payment in respect of child

care rebate is paid to the service under section 219QC or

subsection 219QD(2); and

54 Paragraph 178(1)(b)

After "payments in respect of fee reduction," insert "payments in

respect of weekly child care rebate,".

55 Subparagraph 195(2)(b)(i)

Omit "paragraphs 200(1)(a) to (h)", substitute "paragraphs 200(1)(a) to

(i)".

56 At the end of subsection 200(1)

Add:

; (i) suspend, for a maximum of 3 weeks, payment under

section 219QC or subsection 219QD(2) in respect of child

care rebate.

57 After subsection 200(3B)

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Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

Insert:

Revocation of suspension of payment in respect of child care

rebate

(3C) If the Secretary suspends payment in respect of child care rebate,

the Secretary may at any time, by notice to the service revoke the

suspension. If the suspension is revoked, all payments under

section 219QC or subsection 219QD(2) that would have been paid

but for the suspension must be paid.

58 Subsection 201(1)

Omit "paragraphs 200(1)(a) to (h)", substitute "paragraphs 200(1)(a) to

(i)".

59 Paragraphs 201B(1)(a) and (2)(c)

Omit "paragraphs 200(1)(a) to (h)", substitute "paragraphs 200(1)(a) to

(i)".

60 Before section 219A

Insert:

Subdivision A--Obligations relating to enrolment

61 Before section 219B

Insert:

Subdivision B--Obligations relating to child care benefit by fee

reduction

62 After section 219E

Insert:

Subdivision C--Obligations relating to weekly child care rebate

219EA Obligation to pass on weekly child care rebate

(1) This section applies if:

(a) the Secretary calculates under section 65EAAA, or

recalculates under section 65EAAD, the amount of the child

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30 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

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care rebate that is applicable in respect of an individual and a

child for care provided for the child by an approved child

care service in a week; and

(b) the Secretary has notified the service of the amount in

accordance with subsection 65EAAB(2), or the recalculated

amount in accordance with subsection 65EAAE(2).

(2) Subject to subsection (5), the service must, within 14 days after

being notified of the amount as calculated or recalculated, pass the

amount on to the individual, except to the extent that the service is

required to remit the amount to the Secretary under section 219QE.

Note 1:

This amount must be passed on, even if the payment of child care

rebate has been suspended under paragraph 200(1)(i).

Note 2:

This is a civil penalty provision. Part 8C provides for pecuniary

penalties for breaches of civil penalty provisions.

(3) An approved child care service commits an offence if the service

contravenes subsection (2).

Penalty: 60 penalty units.

(4) Subsection (3) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code.

(5)

If:

(a) the Secretary, on recalculating under section 65EAAD the

amount in which the Secretary considers child care rebate is

applicable in respect of an individual and a child for care

provided for the child by an approved child care service in a

week, reduces the amount; and

(b) the amount is reduced for a reason other than the substitution

or withdrawal by the service of a report given under

section 219N;

the service must pass on to the individual the amount as calculated,

or recalculated, immediately before the last recalculation, rather

than the amount last recalculated.

(6)

If:

(a) the service reduces the amount by which it charges an

individual in respect of care in anticipation of the Secretary's

calculation of the amount of child care rebate applicable for

Amendments to allow weekly payment of child care rebate Schedule 1

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Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

the service in respect of the individual and a child for a week;

and

(b) the service was an approved child care service at the time the

care was provided;

the service is taken to have passed on to the individual an amount

equal to the anticipated child care rebate.

(7) The amount is taken to have been passed on to the individual on

the day on which the Secretary notified the service of the amount

in accordance with subsection 65EAAB(2) or 65EAAE(2).

219EB Obligation to provide additional material in section 219E

statements

(1)

If:

(a) an approved child care service is required to pass on an

amount under section 219EA to an individual in respect of

care provided for a child by the service in a week; and

(b) the care is provided in a statement period for the service

described in subsection 219E(4) or set out in rules made

under paragraph 219E(6)(c);

the service must set out the additional matters specified in

subsection (4) in relation to the care in the statement given to the

individual or another person under section 219E for the statement

period.

Note:

This is a civil penalty provision. Part 8C provides for pecuniary

penalties for breaches of civil penalty provisions.

(2) An approved child care service commits an offence if:

(a) the approved child care service is required to pass on an

amount under section 219EA to an individual in respect of

care provided for a child by the service in a week; and

(b) the care is provided in a statement period for the service

described in subsection 219E(4) or set out in rules made

under paragraph 219E(6)(c); and

subsection (4) in relation to the care in the statement given to

the individual or another person under section 219E for the

statement period.

Penalty: 60 penalty units.

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(3) Subsection (2) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code.

(4) The additional matters required to be set out in the statement given

under section 219E for the statement period are:

(a) the amount of the fees for which the individual to whom the

amount is passed on would have been liable for the care if

any fee reduction under section 219B had been passed on but

no amount of child care rebate had been passed on under

section 219EA for the care; and

(b) the amount of child care rebate required to be passed on

under section 219EA.

(5)

If:

(a) an approved child care service has, under subsection (1),

included a matter in a statement (the earlier statement) given

to an individual or other person under section 219E in

relation to care provided by the service during a statement

period; and

(b) under subsection 65EAAE(2), the service is notified on a day

(the notification day) of a recalculated amount in respect of

the care;

the service must, before the end of the first statement period

starting after the notification day, give the individual or other

person either a statement setting out the additional matters

specified in subsection (4) taking account of the recalculation or a

statement amending the earlier statement so as to take account of

the recalculation.

Note:

This is a civil penalty provision. Part 8C provides for pecuniary

penalties for breaches of civil penalty provisions.

(6) An approved child care service commits an offence if:

(a) an approved child care service has, under subsection (1),

included a matter in a statement (the earlier statement) given

to an individual or other person under section 219E in

relation to care provided by the service during a statement

period; and

(b) under subsection 65EAAE(2), the service is notified on a day

(the notification day) of a recalculated amount in respect of

the care; and

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Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

period starting after the notification day, give the individual

or other person either a statement setting out the additional

matters specified in subsection (4) taking account of the

recalculation or a statement amending the earlier statement so

as to take account of the recalculation.

Penalty: 60 penalty units.

(7) Subsection (6) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code.

Subdivision D--Obligations relating to records

63 Before section 219H

Insert:

Subdivision E--Reporting and other obligations

64 After paragraph 219N(4)(a)

Insert:

(aa) any information required by the Secretary that is relevant to:

(i) determining whether an individual is eligible to receive

child care rebate; or

(ii) determining the amount in which child care rebate is

applicable in respect of an individual and a child for

care provided for the child by an approved child care

service in a week, a quarter or an income year; or

(iii) making a determination of entitlement in relation to the

care under Division 4AA of Part 3; or

(iv) determining any other matter in relation to the payment

of child care rebate to an individual; and

65 After subsection 219P(1)

Insert:

(1A) If the approval of a child care service is suspended or cancelled,

the person who operated the child care service immediately before

the service's approval was suspended or cancelled must fulfil the

obligations under the following provisions in respect of care that

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occurred before the approval was suspended or cancelled as if it

had not been:

(a)

section

219EA;

(b)

section

219QE.

66 Subsection 219P(2)

After "subsection (1)", insert "or (1A)".

67 After paragraph 219Q(3)(b)

Insert:

(ba) section 219QD (set off where amount of applicable child care

rebate reduced on recalculation); and

68 Paragraph 219QA(3)(a)

Omit "subsection 219QA(2)", substitute "subsection (2) of this section".

69 After paragraph 219QA(3)(a)

Insert:

(aa) one or more payments under section 219QC or subsection

219QD(2) in respect of child care rebate; or

70 Subparagraph 219QB(1)(a)(ii)

Repeal the subparagraph, substitute:

(ii) such an amount would be paid, but for a set off under

subsection 82(2) or section 219QA, section 219QD,

section 219RC or section 219RE, or the imposition of a

sanction under paragraph 200(1)(h); and

71 After Division 2 of Part 8A

Insert:

Division 2A--Weekly payments in respect of child care

rebate to approved child care services

219QC Weekly payments of child care rebate

(1)

If:

(a) the Secretary, under section 65EAAA, calculates the amount

in which the Secretary considers child care rebate is

Amendments to allow weekly payment of child care rebate Schedule 1

Amendments Part 1

Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

applicable in respect of an individual and a child for care

provided for the child by an approved child care service in a

week; and

(b) the individual has made an election under paragraph

65EAAAA(1)(b) that is in effect for the week to have child

care rebate paid weekly to the approved child care service;

the Secretary must pay the amount calculated to the credit of a

bank account nominated and maintained by the service.

(2)

If:

(a) the Secretary, on recalculating under section 65EAAD the

amount in which the Secretary considers child care rebate is

applicable in respect of an individual and a child for care

provided for the child by an approved child care service in a

week, increases the amount; and

(b) the individual has made an election under paragraph

65EAAAA(1)(b) that is in effect for the week to have child

care rebate paid weekly to the approved child care service;

the Secretary must pay to the credit of a bank account nominated

and maintained by the service an amount equal to the increase.

Relationship with other provisions

(3) This section is subject to:

(a) Part 4 (overpayments and debt recovery); and

(b) section 219QA (set off where amount of applicable fee

reduction reduced on recalculation); and

rebate reduced on recalculation); and

(d) section 219RC (set off where enrolment ceases); and

(e) section 219RE (set off where a payment under

section 219RD is made); and

(f) paragraph 200(1)(i) (suspending payment in respect of child

care rebate).

219QD Payments and set offs where recalculation results in reduced

weekly child care rebate

(1) This section applies if:

Schedule 1 Amendments to allow weekly payment of child care rebate

Part 1 Amendments

36 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

2011

(a) the Secretary, on recalculating under section 65EAAD the

amount in which the Secretary considers child care rebate is

applicable in respect of an individual and a child for care

provided for the child by an approved child care service in a

week, reduces the amount; and

(b) the individual has made an election under paragraph

65EAAAA(1)(b) that is in effect for the week to have child

care rebate paid weekly to the approved child care service;

and

withdrawal by the service of a report given under

section 219N.

(2) The Secretary must pay the amount as last recalculated to the credit

of a bank account nominated and maintained by the service.

(3) The amount as calculated, or recalculated, immediately before the

last recalculation must be set off against a later payment to the

service of an amount in respect of:

(a) one or more payments under section 219Q or subsection

219QA(2) in respect of fee reduction; or

(b) one or more payments under section 219QC or subsection (2)

of this section in respect of child care rebate; or

219QE Remitting amounts that cannot be passed on

(1)

If:

(a)

either:

(i) an amount is paid to an approved child care service

under section 219QC or subsection 219QD(2) for a

week; or

(ii) such an amount would be paid, but for a set off under

subsection 82(2), section 219QA, section 219QD,

section 219RC or section 219RE, or the imposition of a

sanction under paragraph 200(1)(i); and

(b) it is not reasonably practicable for the service to pass on to

the individual within the time required under subsection

219EA(2) the child care rebate in respect of which the

amount was or would have been paid;

Amendments to allow weekly payment of child care rebate Schedule 1

Amendments Part 1

Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

the service must immediately remit to the Secretary an amount

equal to the amount that could not be passed on.

Note:

This is a civil penalty provision. Part 8C provides for pecuniary

penalties for breach of civil penalty provisions.

(2) An approved child care service commits an offence if the service

contravenes subsection (1).

Penalty: 60 penalty units.

(3) The amount must be remitted in the manner or way approved by

the Secretary.

(4) The service must notify the Secretary of the remittal of the amount.

(5) The notice must:

(a) be given in the form, and in the manner or way, approved by

the Secretary; and

(b) include any information required by the Secretary.

72 After paragraph 219RA(2)(b)

Insert:

(ba) section 219QD (set off where amount of applicable child care

rebate reduced on recalculation); and

73 Paragraph 219RC(b)

Omit "or section 219QA", substitute ", section 219QA or

section 219QD".

74 At the end of section 219RC

Add:

; or (e) any weekly payment of child care rebate that is to be paid to

the service in relation to that or another enrolment.".

75 After paragraph 219RE(a)

Insert:

(aa) any amount that is to be paid to the service in respect of

weekly child care rebate; or

76 After paragraph 224(1)(c)

Insert:

Amendments to allow weekly payment of child care rebate Schedule 1

Application and transitional provisions Part 2

Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

Part 2--Application and transitional provisions

77 Application

The amendments made by this Schedule apply in relation to income

years beginning on or after 1 July 2011.

78 Transitional--elections made before 1 July 2011

(1)

This item applies if an individual gives the Secretary notice, by the time

and in the form and manner or way approved by the Secretary, electing

to have child care rebate in respect of the individual and a child for care

provided for the child in the 2011-2012 income year paid in one of the

following ways:

(a) weekly into a bank account maintained by the individual

alone or jointly or in common with someone else;

(b) weekly to one or more approved child care services;

alone or jointly or in common with someone else.

(2)

For the purposes of the Family Assistance Act and the Family

Assistance Administration Act:

(a) if the notice is of the kind described in paragraph (1)(a) of

this item--the individual is taken to have given notice under

paragraph 65EAAAA(1)(a) of the Family Assistance

Administration Act in relation to the 2011-2012 income year;

and

(b) if the notice is of the kind described in paragraph (1)(b) of

this item--the individual is taken to have given notice under

paragraph 65EAAAA(1)(b) of the Family Assistance

Administration Act in relation to the 2011-2012 income year;

and

this item--the individual is taken to have given notice under

paragraph 65EAAAA(1)(c) of the Family Assistance

Administration Act in relation to the 2011-2012 income year.

(3)

If an individual does not give notice of the kind described in subitem 1,

child care rebate (if any) in respect of the individual and the child for

care provided during the 2011-2012 income year is to be paid:

Schedule 1 Amendments to allow weekly payment of child care rebate

Part 2 Application and transitional provisions

40 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

2011

(a) if child care rebate was paid quarterly in respect of the

individual and the child in relation to the 2010-2011 income

year--quarterly; and

(b) otherwise--for the income year.

(4)

To avoid doubt, this item applies even if the Secretary approves the

time, the form or the manner or way, in which the election is to be given

before the day on which this item commences.

79 Continued application of section 71B of the Family

Assistance Administration Act

The amendment made by item 28 of this Schedule does not affect

section 71B of the Family Assistance Administration Act as it applies in

relation to payments made before the commencement of that item.

80 Continued application of section 93A of the Family

Assistance Administration Act

The amendment made by item 38 of this Schedule does not affect

section 93A of the Family Assistance Administration Act as it applies in

relation to payments made before the commencement of that item.

81 Continued application of section 176 of the Family

Assistance Administration Act

The amendments made by items 50 and 52 do not affect section 176 of

the Family Assistance Administration Act as it applies in relation to

payments obtained before the commencement of those items.

Amendments to be made if the Family Assistance and Other Legislation Amendment

(Child Care and Other Measures) Act 2011 is passed after Schedule 1 commences

Schedule 2

Amendment of the A New Tax System (Family Assistance) (Administration) Act 1999

Part 1

Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

Schedule 2--Amendments to be made if the

Family Assistance and Other

Legislation Amendment (Child Care

and Other Measures) Act 2011 is

passed after Schedule 1 commences

Part 1--Amendment of the A New Tax System

(Family Assistance) (Administration) Act

1999

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

1999

1 Subsection 3(1) (after paragraph (a) of the definition of

child care service payment)

Insert:

(aa) a payment under section 219QC or subsection 219QD(2) in

respect of child care rebate; or

2 Subsection 65EAAE(2)

Omit "Subject to subsection (3), the", substitute "The".

3 Subsection 65EAAE(3)

Repeal the subsection.

4 Paragraph 108(2)(daaa)

Repeal the paragraph.

5 After paragraph 108(2)(db)

Insert:

(dba) a decision under subsection 218RA(1A) not to pay enrolment

advance; or

6 Subsection 219EA(2)

Schedule 2 Amendments to be made if the Family Assistance and Other Legislation

Amendment (Child Care and Other Measures) Act 2011 is passed after Schedule 1

commences

Part 1 Amendment of the A New Tax System (Family Assistance) (Administration)

Act 1999

42 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

2011

Omit "Subject to subsection (5), the", substitute "The".

7 Subsection 219EA(5)

Repeal the subsection.

8 Paragraph 219QC(3)(d)

After "ceases", insert "or where notification of decision to cease

operating service".

9 Subsection 219QD(1)

Repeal the subsection, substitute:

(1) This section applies if:

(a) the Secretary, on recalculating under section 65EAAD the

amount in which the Secretary considers child care rebate is

applicable in respect of an individual and a child for care

provided for the child by an approved child care service in a

week, reduces the amount (including to nil); and

(b) the individual has made an election under paragraph

65EAAAA(1)(b) that is in effect for the week to have child

care rebate paid weekly to the approved child care service.

10 Subsection 219QD(2)

After "amount", insert "(if any)".

11 Subsection 219QD(3)

Omit all the words after "against", substitute:

one or more child care service payments that are to be made to the

service (the first service) or to another approved child care service

operated by the person who operates the first service.

Note: For

child care service payment see subsection 3(1).

12 Subparagraph 219RC(3)(b)(ii)

After "section 219QA", insert "section 219QD".

13 Application

Amendments to be made if the Family Assistance and Other Legislation Amendment

(Child Care and Other Measures) Act 2011 is passed after Schedule 1 commences

Schedule 2

Amendment of the A New Tax System (Family Assistance) (Administration) Act 1999

Part 1

Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

(1)

The amendments made by items 2, 3, 6, 7, 9 and 10 of this Schedule

apply in relation to recalculations done under section 65EAAD of the

Family Assistance Administration Act on or after the commencement of

those items in respect of weeks beginning before, on or after that

commencement.

(2)

The amendment made by item 11 of this Schedule applies in relation to

payments that are to be made on or after the commencement of that

item.

Schedule 2 Amendments to be made if the Family Assistance and Other Legislation

Amendment (Child Care and Other Measures) Act 2011 is passed after Schedule 1

commences

Part 2 Amendment of the Family Assistance and Other Legislation Amendment (Child

Care and Other Measures) Act 2011

44 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

2011

Part 2--Amendment of the Family Assistance and

Other Legislation Amendment (Child Care

and Other Measures) Act 2011

Family Assistance and Other Legislation Amendment (Child

Care and Other Measures) Act 2011

14 Items 5 and 6 of Schedule 1

Repeal the items.

Amendments to be made if the Family Assistance and Other Legislation Amendment

(Child Care and Other Measures) Act 2011 is passed after Schedule 1 commences

Schedule 2

Other consequential amendments Part 3

Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

Part 3--Other consequential amendments

Family Assistance Legislation Amendment (Child Care

Management System and Other Measures) Act

2007

15 After paragraph 97C(1)(b) of Schedule 1

Insert:

(ba) subsection 219QD(3) of that Act (about set off where amount

of weekly child care rebate reduced on recalculation); and

Schedule 3 Amendments to be made if the Family Assistance and Other Legislation

Amendment (Child Care and Other Measures) Act 2011 already passed

46 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

2011

Schedule 3--Amendments to be made if the

Family Assistance and Other

Legislation Amendment (Child Care

and Other Measures) Act 2011 already

passed

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

1999

1 Subsection 3(1) (after paragraph (a) of the definition of

child care service payment)

Insert:

(aa) a payment under section 219QC or subsection 219QD(2) in

respect of child care rebate; or

2 Before Subdivision AA of Division 4AA of Part 3

Insert:

Subdivision AAA--Election to have child care rebate paid in

various ways

65EAAAA Individual may elect to have child care rebate paid in

various ways

(1) An individual may give the Secretary notice in accordance with

subsection (2) electing to have child care rebate in respect of the

individual and a child for care provided for the child in an income

year paid in one of the following ways:

(a) weekly into a bank account maintained by the individual

alone or jointly or in common with someone else;

(b) weekly to one or more approved child care services;

alone or jointly or in common with someone else.

Note:

Child care rebate is calculated on the basis of reports given by

approved child care services in relation to each week of care under

section 219N. A report for care provided in one week may be given up

to 2 weeks later. A service may therefore give a report for 2 weeks

Amendments to be made if the Family Assistance and Other Legislation Amendment

(Child Care and Other Measures) Act 2011 already passed Schedule 3

Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

together. For this reason, payments of child care rebate to an

individual for 2 successive weeks may be made together. The effective

result is then a fortnightly payment.

(2) A notice under subsection (1):

(a) must be given in the form, and in the manner or way,

approved by the Secretary; and

(b) must be given before the beginning of the income year to

which the notice relates unless:

(i) the individual makes a claim after the beginning of the

income year for payment of child care benefit by fee

reduction for care provided for the child by one or more

approved child care services; or

(ii) the Secretary makes a determination under

subsection (4).

(3) If an individual gives notice under subsection (1) when making a

claim after the beginning of an income year for payment of child

care benefit by fee reduction, the election is taken to relate to the

income year in which the claim is made.

(4) The Secretary may determine, in writing, that an individual may

give notice under subsection (1) after the income year to which the

notice relates has begun, if the Secretary is satisfied that there are

exceptional circumstances justifying the determination.

Note:

A determination of entitlement to child care rebate will be made for

the income year under Subdivision A of this Division. So if a person is

entitled to child care rebate, does not elect to have it paid weekly or

quarterly and has not been receiving child care rebate weekly or

quarterly as a result of a previous election (see section 65EAAAC),

child care rebate will be paid after the end of the income year.

65EAAAB Period in which election has effect

(1)

If:

(a) a notice is given under paragraph 65EAAAA(1)(a) or (b) to

have child care rebate paid weekly; and

(b) the notice is given before the income year to which it relates

has begun;

the election takes effect on the first Monday in the income year and

continues in effect for each week all or part of which falls in the

income year.

Schedule 3 Amendments to be made if the Family Assistance and Other Legislation

Amendment (Child Care and Other Measures) Act 2011 already passed

48 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

2011

(2)

If:

(a) a notice is given under paragraph 65EAAAA(1)(c) to have

child care rebate paid quarterly; and

(b) the notice is given before the income year to which it relates

has begun;

the election takes effect on the first day of the first quarter in the

income year and continues in effect for each quarter which falls in

the income year.

(3) If notice is given under subsection 65EAAAA(1) after the income

year to which it relates has begun:

(a) the Secretary must determine in writing the day on which the

election is to take effect; and

(b) the election continues in effect:

(i) if the notice is given under paragraph 65EAAAA(1)(a)

or (b) to have child care rebate paid weekly--for each

week all or part of which falls in the income year; and

(ii) if the notice is given under paragraph 65EAAAA(1)(c)

to have child care rebate paid quarterly--for each

quarter which falls in the income year.

65EAAAC Where no election made for an income year

If an individual does not give notice under subsection

65EAAAA(1) for an income year, child care rebate in respect of

the individual and the child for care provided during the income

year is to be paid:

(a) if child care rebate was paid in respect of the individual and

the child in relation to the immediately preceding income

year--in the same way as it was paid in relation to that year;

and

(b) otherwise--for the income year.

Subdivision AAB--Weekly payments of child care rebate

65EAAA Weekly payments of child care rebate

If:

Amendments to be made if the Family Assistance and Other Legislation Amendment

(Child Care and Other Measures) Act 2011 already passed Schedule 3

Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

(a) the Secretary is satisfied that an individual is eligible under

subsection 57EAA(1) of the Family Assistance Act for child

care rebate for a week in respect of a child; and

(b) the Secretary has calculated an amount of fee reduction under

subsection 50Z(1) in respect of the individual and the child

for a session or sessions of care provided by an approved

child care service in the week;

the Secretary must calculate the amount of the rebate which the

Secretary considers is applicable in respect of the individual and

the child for care provided for the child by the approved child care

service in the week.

Note 1:

The individual will not be eligible to have child care rebate paid

weekly unless the individual has made an election under paragraph

65EAAAA(1)(a) or (b) to have rebate paid weekly.

Note 2:

The calculation is made in accordance with section 84AAA of the

Family Assistance Act.

Note 3:

The amount of fee reduction calculated under subsection 50Z(1) may

be a nil amount (see section 4A).

65EAAB Where individual elects to have child care rebate paid

weekly to approved child care service

(1) This section applies if:

(a) the Secretary calculates an amount of child care rebate under

section 65EAAA which the Secretary considers is applicable

in respect of an individual and a child for care provided for

the child by an approved child care service in a week; and

(b) the individual has made an election under paragraph

65EAAAA(1)(b) that is in effect for the week to have child

care rebate paid weekly to the approved child care service.

(2) The Secretary must notify the approved child care service of the

amount calculated.

(3) The notice must be given in the form, and in the manner or way,

approved by the Secretary.

(4) Without limiting subsection (3), the Secretary may approve

notification of the amount by making the information available to

the approved child care service using an electronic interface. In

that case, the approved child care service is taken to have been

Schedule 3 Amendments to be made if the Family Assistance and Other Legislation

Amendment (Child Care and Other Measures) Act 2011 already passed

50 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

2011

given the notice on the day on which the information is made

available.

Note:

The amount is then paid to the approved child care service under

subsection 219QC(1).

65EAAC Where individual elects to have child care rebate paid

weekly into own bank account

(1) This section applies if:

(a) the Secretary calculates an amount of child care rebate under

section 65EAAA which the Secretary considers is applicable

in respect of an individual and a child for care provided for

the child by an approved child care service in a week; and

(b) the individual has made an election under paragraph

65EAAAA(1)(a) that is in effect for the week to have child

care rebate paid weekly into a bank account nominated and

maintained by the individual.

(2) The Secretary must pay the amount of child care rebate calculated

under section 65EAAA to the individual, at such time as the

Secretary considers appropriate, by paying it to the credit of the

bank account.

(3) The Secretary may direct that the whole or a part of an amount that

is to be paid under this section is to be paid in a different way from

that provided for by subsection (2). If the Secretary gives the

direction, the amount is to be paid in accordance with the direction.

(4) The Secretary must give notice to the individual:

(a) identifying the week or weeks to which the notice relates (the

rebate period); and

(b)

stating:

(i) the child's name; and

(ii) the amount of child care rebate calculated in respect of

the rebate period (the rebate amount); and

(iii) the total amount of the individual's approved child care

fees for care provided for the child by the approved

child care service during the rebate period, worked out

under step 1 of the method statement in section 84AAA

of the Family Assistance Act when calculating the

rebate amount; and

Amendments to be made if the Family Assistance and Other Legislation Amendment

(Child Care and Other Measures) Act 2011 already passed Schedule 3

Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

(iv) the total amount (if any) of fee reductions for care

provided for the child by the approved child care service

during the rebate period, worked out under step 2 of the

method statement in section 84AAA of the Family

Assistance Act when calculating the rebate amount.

(5) The calculation and payment of an amount of child care rebate

applicable under this section is not ineffective by reason only that

any, or all, of the requirements of subsection (4) are not complied

with.

(6) This section is subject to:

(a) section 65EAAF; and

(b) section 65EAB; and

(d) Division 3 of Part 8B.

65EAAD Revising a calculation of weekly child care rebate

The Secretary may recalculate an amount of child care rebate

which the Secretary considers is applicable:

(a) under section 65EAAA; or

(b) under a previous application of this section;

in respect of an individual and a child for care provided for the

child by an approved child care service in a week, so long as a

determination of entitlement has not been made under Subdivision

A in respect of the individual and child for the income year in

which all or part of the week falls.

65EAAE If weekly payment is to an approved child care service,

notice of revised calculation must be given to the service

(1) This section applies if:

(a) the Secretary, under section 65EAAD, recalculates an

amount of child care rebate which the Secretary considers is

applicable in respect of an individual and a child for care

provided for the child by an approved child care service in a

week; and

(b) the individual has made an election under paragraph

65EAAAA(1)(b) that is in effect for the week to have child

care rebate paid weekly to the approved child care service.

Schedule 3 Amendments to be made if the Family Assistance and Other Legislation

Amendment (Child Care and Other Measures) Act 2011 already passed

52 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

2011

(2) The Secretary must notify the approved child care service of the

recalculated amount.

(3) The notice must be given in the form, and in the manner or way,

approved by the Secretary.

(4) Without limiting subsection (3), the Secretary may approve

notification of the amount by making the information available to

the approved child care service using an electronic interface. In

that case, the approved child care service is taken to have been

given the notice on the day on which the information is made

available.

Note:

The effect of a recalculation on payments to an approved child care

service is dealt with in subsection 219QC(2) and section 219QD.

65EAAF Effect of revised calculation--payment to the individual

(1) This section applies if:

(a) the Secretary, under section 65EAAD, recalculates an

amount of child care rebate which the Secretary considers is

applicable in respect of an individual and a child for care

provided for the child by an approved child care service in a

week; and

(b) the individual has made an election under paragraph

65EAAAA(1)(a) that is in effect for the week to have child

care rebate paid weekly into a bank account nominated and

maintained by the individual.

(2) If the recalculation increases the amount of child care rebate

applicable in respect of the individual and the child for care

provided for the child by the service in the week, then subsections

65EAAC(2), (3) and (6) apply to the increase as if the increase

were the amount applicable under section 65EAAA.

(3) If the recalculation decreases the amount of child care rebate

applicable in respect of the individual and the child for care

provided for the child by the service in the week, the Secretary

may set off all or a part of the decrease against an amount of child

care rebate applicable under this Subdivision or Subdivision AA

for that or any other approved child care service in respect of the

individual and the child for a later period in the same income year.

(4) The Secretary must give notice to the individual:

Amendments to be made if the Family Assistance and Other Legislation Amendment

(Child Care and Other Measures) Act 2011 already passed Schedule 3

Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

(a) identifying the week or weeks to which the notice relates (the

rebate period); and

(b)

stating:

(i) the child's name; and

(ii) the amount of child care rebate as recalculated under

this section in respect of the rebate period (the rebate

amount); and

(iii) the total amount of the individual's approved child care

fees for care provided for the child by the approved

child care service during the rebate period, worked out

under step 1 of the method statement in section 84AAA

of the Family Assistance Act when recalculating the

rebate amount; and

(iv) the total amount (if any) of fee reductions for care

provided for the child by the approved child care service

during the rebate period, worked out under step 2 of the

method statement in section 84AAA of the Family

Assistance Act when recalculating the rebate amount.

(5) The recalculation and payment of an amount of child care rebate

applicable under this section is not ineffective by reason only that

any, or all, of the requirements of subsection (4) are not complied

with.

3 Paragraphs 108(2)(da) to (db)

Repeal the paragraphs, substitute:

(da) a decision by the Secretary under section 219Q or subsection

219QA(2) to pay an amount in respect of fee reduction; or

(db) a decision by the Secretary under section 219QC or

subsection 219QD(2) to pay an amount in respect of child

care rebate; or

(dc) a decision under subsection 219RA(1A) not to pay an

enrolment advance; or

(dd) a decision under section 219RD (business continuity

payments); or

(de) a calculation of an amount of child care rebate for a week

under section 65EAAA, or a recalculation of such an amount

under section 65EAAD; or

(df) a decision by the Secretary under subsection 65EAAAA(4)

(allowing election after beginning of income year to be paid

Schedule 3 Amendments to be made if the Family Assistance and Other Legislation

Amendment (Child Care and Other Measures) Act 2011 already passed

54 Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. ,

2011

child care rebate weekly or quarterly) or under subsection

65EAAAB(3) (day on which new payment arrangement

begins); or

(dg) a calculation of an amount of child care rebate for a quarter

under section 65EAA, or a recalculation of such an amount

under section 65EAB; or

4 After subparagraph 111(2)(a)(ix)

Insert:

(ixa)

paragraph

65EAAAA(2)(a);

(ixb) subsection 65EAAB(3) or 65EAAE(3);

5 After section 219E

Insert:

Subdivision C--Obligations relating to weekly child care rebate

219EA Obligation to pass on weekly child care rebate

(1) This section applies if:

(a) the Secretary calculates under section 65EAAA, or

recalculates under section 65EAAD, the amount of the child

care rebate that is applicable in respect of an individual and a

child for care provided for the child by an approved child

care service in a week; and

(b) the Secretary has notified the service of the amount in

accordance with subsection 65EAAB(2), or the recalculated

amount in accordance with subsection 65EAAE(2).

(2) The service must, within 14 days after being notified of the amount

as calculated or recalculated, pass the amount on to the individual,

except to the extent that the service is required to remit the amount

to the Secretary under section 219QE.

Note 1:

This amount must be passed on, even if the payment of child care

rebate has been suspended under paragraph 200(1)(i).

Note 2:

This is a civil penalty provision. Part 8C provides for pecuniary

penalties for breaches of civil penalty provisions.

(3) An approved child care service commits an offence if the service

contravenes subsection (2).

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Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

Penalty: 60 penalty units.

(4) Subsection (3) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code.

(5)

If:

(a) the service reduces the amount by which it charges an

individual in respect of care in anticipation of the Secretary's

calculation of the amount of child care rebate applicable for

the service in respect of the individual and a child for a week;

and

(b) the service was an approved child care service at the time the

care was provided;

the service is taken to have passed on to the individual an amount

equal to the anticipated child care rebate.

(6) The amount is taken to have been passed on to the individual on

the day on which the Secretary notified the service of the amount

in accordance with subsection 65EAAB(2) or 65EAAE(2).

219EB Obligation to provide additional material in section 219E

statements

(1)

If:

(a) an approved child care service is required to pass on an

amount under section 219EA to an individual in respect of

care provided for a child by the service in a week; and

(b) the care is provided in a statement period for the service

described in subsection 219E(4) or set out in rules made

under paragraph 219E(6)(c);

the service must set out the additional matters specified in

subsection (4) in relation to the care in the statement given to the

individual or another person under section 219E for the statement

period.

Note:

This is a civil penalty provision. Part 8C provides for pecuniary

penalties for breaches of civil penalty provisions.

(2) An approved child care service commits an offence if:

(a) the approved child care service is required to pass on an

amount under section 219EA to an individual in respect of

care provided for a child by the service in a week; and

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(b) the care is provided in a statement period for the service

described in subsection 219E(4) or set out in rules made

under paragraph 219E(6)(c); and

subsection (4) in relation to the care in the statement given to

the individual or another person under section 219E for the

statement period.

Penalty: 60 penalty units.

(3) Subsection (2) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code.

(4) The additional matters required to be set out in the statement given

under section 219E for the statement period are:

(a) the amount of the fees for which the individual to whom the

amount is passed on would have been liable for the care if

any fee reduction under section 219B had been passed on but

no amount of child care rebate had been passed on under

section 219EA for the care; and

(b) the amount of child care rebate required to be passed on

under section 219EA.

(5)

If:

(a) an approved child care service has, under subsection (1),

included a matter in a statement (the earlier statement) given

to an individual or other person under section 219E in

relation to care provided by the service during a statement

period; and

(b) under subsection 65EAAE(2), the service is notified on a day

(the notification day) of a recalculated amount in respect of

the care;

the service must, before the end of the first statement period

starting after the notification day, give the individual or other

person either a statement setting out the additional matters

specified in subsection (4) taking account of the recalculation or a

statement amending the earlier statement so as to take account of

the recalculation.

Note:

This is a civil penalty provision. Part 8C provides for pecuniary

penalties for breaches of civil penalty provisions.

(6) An approved child care service commits an offence if:

Amendments to be made if the Family Assistance and Other Legislation Amendment

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Family Assistance Legislation Amendment (Child Care Rebate) Bill 2011 No. , 2011

(a) an approved child care service has, under subsection (1),

included a matter in a statement (the earlier statement) given

to an individual or other person under section 219E in

relation to care provided by the service during a statement

period; and

(b) under subsection 65EAAE(2), the service is notified on a day

(the notification day) of a recalculated amount in respect of

the care; and

period starting after the notification day, give the individual

or other person either a statement setting out the additional

matters specified in subsection (4) taking account of the

recalculation or a statement amending the earlier statement so

as to take account of the recalculation.

Penalty: 60 penalty units.

(7) Subsection (6) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code.

Subdivision D--Obligations relating to records

6 After Division 2 of Part 8A

Insert:

Division 2A--Weekly payments in respect of child care

rebate to approved child care services

219QC Weekly payments of child care rebate

(1)

If:

(a) the Secretary, under section 65EAAA, calculates the amount

in which the Secretary considers child care rebate is

applicable in respect of an individual and a child for care

provided for the child by an approved child care service in a

week; and

(b) the individual has made an election under paragraph

65EAAAA(1)(b) that is in effect for the week to have child

care rebate paid weekly to the approved child care service;

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the Secretary must pay the amount calculated to the credit of a

bank account nominated and maintained by the service.

(2)

If:

(a) the Secretary, on recalculating under section 65EAAD the

amount in which the Secretary considers child care rebate is

applicable in respect of an individual and a child for care

provided for the child by an approved child care service in a

week, increases the amount; and

(b) the individual has made an election under paragraph

65EAAAA(1)(b) that is in effect for the week to have child

care rebate paid weekly to the approved child care service;

the Secretary must pay to the credit of a bank account nominated

and maintained by the service an amount equal to the increase.

Relationship with other provisions

(3) This section is subject to:

(a) Part 4 (overpayments and debt recovery); and

(b) section 219QA (set off where amount of applicable fee

reduction reduced on recalculation); and

rebate reduced on recalculation); and

(d) section 219RC (set off where enrolment ceases or where

notification of decision to cease operating service); and

(e) section 219RE (set off where a payment under

section 219RD is made); and

(f) paragraph 200(1)(i) (suspending payment in respect of child

care rebate).

219QD Payments and set offs where recalculation results in reduced

weekly child care rebate

(1) This section applies if:

(a) the Secretary, on recalculating under section 65EAAD the

amount in which the Secretary considers child care rebate is

applicable in respect of an individual and a child for care

provided for the child by an approved child care service in a

week, reduces the amount (including to nil); and

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(b) the individual has made an election under paragraph

65EAAAA(1)(b) that is in effect for the week to have child

care rebate paid weekly to the approved child care service.

(2) The Secretary must pay the amount (if any) as last recalculated to

the credit of a bank account nominated and maintained by the

service.

(3) The amount as calculated, or recalculated, immediately before the

last recalculation must be set off against one or more child care

service payments that are to be made to the service (the first

service) or to another approved child care service operated by the

person who operates the first service.

Note: For

child care service payment see subsection 3(1).

219QE Remitting amounts that cannot be passed on

(1)

If:

(a)

either:

(i) an amount is paid to an approved child care service

under section 219QC or subsection 219QD(2) for a

week; or

(ii) such an amount would be paid, but for a set off under

subsection 82(2), section 219QA, section 219QD,

section 219RC or section 219RE, or the imposition of a

sanction under paragraph 200(1)(i); and

(b) it is not reasonably practicable for the service to pass on to

the individual within the time required under subsection

219EA(2) the child care rebate in respect of which the

amount was or would have been paid;

the service must immediately remit to the Secretary an amount

equal to the amount that could not be passed on.

Note:

This is a civil penalty provision. Part 8C provides for pecuniary

penalties for breach of civil penalty provisions.

(2) An approved child care service commits an offence if the service

contravenes subsection (1).

Penalty: 60 penalty units.

(3) The amount must be remitted in the manner or way approved by

the Secretary.

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(4) The service must notify the Secretary of the remittal of the amount.

(5) The notice must:

(a) be given in the form, and in the manner or way, approved by

the Secretary; and

(b) include any information required by the Secretary.

7 Paragraph 219RC(1)(b)

Omit "or section 219QA", substitute "section 219QA or

section 219QD".

8 Subparagraph 219RC(3)(b)(ii)

After "section 219QA,", insert "section 219QD,".

Family Assistance Legislation Amendment (Child Care

Management System and Other Measures) Act

2007

9 After paragraph 97C(1)(b) of Schedule 1

Insert:

(ba) subsection 219QD(3) of that Act (about set off where amount

of weekly child care rebate reduced on recalculation); and

10 Application

The amendments made by this Schedule apply in relation to income

years beginning on or after 1 July 2011.

Commonwealth of Australia Bills

FAMILY ASSISTANCE LEGISLATION AMENDMENT (CHILD CARE REBATE) BILL 2011