Commonwealth Numbered Acts

CHILD CARE PAYMENTS ACT 1997 NO. 195, 1997 - SCHEDULE 2--Calculation

Note: See section 106.

Module A--Overall rate calculation process Method of calculating rate

A1 The rate of child care rebate is a rate per ^* payment period worked out in accordance with Method statement A1.

Method statement A1

Step 1. Identify the qualifying sessions of care for the person and for each week of the ^* payment period (see Module B).

Step 2. Work out the child care rebate for the person for each week of the payment period (see point A2).

Step 3. The rate of child care rebate is worked out by adding together the child care rebate for each week of the payment period and then rounding the total in accordance with point A3.

The weekly child care rebate formula

A2(1) The formula for working out the child care rebate under Step 2 in Method statement A1 is:

(2) In this formula:

CCR% has the meaning given by Module C.

weekly child care expenditure has the meaning given by Module D.

minimum fee means $19.50. This is the minimum amount that the person must pay for child care for a week before rebate will be paid.

Note: The amount specified in the definition of minimum fee is to be indexed in accordance with Module E.

Rounding amounts

A3 Amounts worked out under Step 3 in Method statement A1 are to be rounded upwards to the nearest 5 cents.

Module B--Qualifying session of care Qualifying session of care --basic meaning

B1 Subject to points B2 and B3, a ^* session of care for a child is a qualifying session of care in relation to a person and a ^* payment period if:

(a) it is a session of care in the payment period in relation to which the conditions specified in subsection 78(2) are satisfied; and

(b) no provision of Part 3 of Chapter 3 applies to make child care rebate not payable to the person in respect of the time of the session.

B2 Once a ^* session of care for a child has been counted (for the purposes of this Schedule) as a qualifying session of care in relation to a person, it cannot be counted again as a qualifying session of care for the purposes of determining the child care rebate payable to the person, or another person, pursuant to another claim.

Dealing with session of care in respect of which 2 people have made claims

B3(1) If 2 people claim child care rebate in respect of the same ^* session of care for a child, the Secretary is to decide in writing which of them is to receive any child care rebate payable in respect of the session. The session is not a qualifying session of care in relation to the other person.

(2) In making the decision, the Secretary must have regard to whether one of the people is the primary carer for the child.

(3) The Secretary is to give notice of the decision to each of the people.

Module C--CCR% The CCR%

C1 The CCR% for a person is:

(a) if the CCR% for the person is set at 20% under point C2 or C3--20%; or

(b) if the person's annual income exceeds the income cut out point (see points C4 and C5)--20%; or

(c) in any other case--30%.

C2(1) The CCR% for the person is 20% if:

(a) the person is requested under section 97 or 123 to:

(i) give the Secretary a written statement of the person's ^* tax file number; or

(ii) apply for a tax file number and give the Secretary a written statement of the person's tax file number once it has been issued; and

(b) at the end of the period of 28 days after the request is made, the person has not complied with the request; and

(c) the Secretary has not exempted the person from having to comply with the request.

Note 1: See section 6 for how to comply with a request.

Note 2: During the 28 days, the CCR% for the person may still be 30%.

(a) the person is a ^* member of a couple; and

(b) the person is requested under section 98 or 124 to give the Secretary a written statement of the ^* tax file number of the person's partner; and

(c) at the end of the period of 28 days after the request is made, the person has not complied with the request; and

(d) the Secretary has not exempted the person from having to comply with the request.

Note 1: See section 7 for how to comply with a request.

Note 2: During the 28 days, the CCR% for the person may still be 30%.

(4) If the person's claim for child care rebate is a ^* retrospective claim, once the CCR% for the person is 20%, it remains fixed at that rate for the purposes of that claim.

Non-compliance with requirement for information about income

C3(1) The CCR% for the person is 20% if:

(a) the person is requested under the regulations to provide ^* information relevant to the calculation of annual income for the purposes of this Module; and

(b) the person has not provided the information within the period required by the regulations.

Note: During the period for complying with the request, the CCR% for the person may still be 30%.

(3) If the person's claim for child care rebate is a ^* retrospective claim, once the CCR% for the person is 20%, it remains fixed at that rate for the purposes of that claim.

The person's annual income

C4(1) For the purposes of this Module, the person's annual income is to be worked out in accordance with the regulations.

(2) Without limiting subpoint (1), the regulations may:

(a) provide that a person's annual income is to include the income of another person (for example, the person's partner); and

(b) identify amounts to be included in a person's income; and

(c) identify amounts not to be included in a person's income; and

(d) provide for the use of estimates in determining a person's income; and

(e) provide for a person's income to be recalculated in certain circumstances.

The income cut out point

C5(1) The income cut out point , in relation to the person and the week, is:

(a) if the person has only one ^* dependent child in the week--$70,000; or

(b) if the person has more than one dependent child in the week--the amount worked out in accordance with the formula in subpoint (2).

Note: The amount specified in this point is to be indexed in accordance with Module E.

Note: The amounts specified in this point are to be indexed in accordance with Module E.

dependent child , in relation to the person, means a ^* dependent child of the person or the person's partner.

Module D--Weekly child care expenditure Method of calculating weekly child care expenditure

D1 The weekly child care expenditure for a person for a week is worked out in accordance with Method statement D1.

Method statement D1

Step 1. Work out the total of all liabilities that the person, or the person's partner, has incurred for qualifying sessions of care during the week.

Step 2. Deduct the amounts referred to in point D2. The result is the uncapped weekly child care expenditure.

Step 3. Apply the expenditure ceiling specified in point D3 to the uncapped weekly child care expenditure, then apply the following rules:

(a) if the uncapped weekly child care expenditure is less than the expenditure ceiling, the weekly child care expenditure is equal to the uncapped weekly child care expenditure;

(b) if the uncapped weekly child care expenditure is equal to or greater than the expenditure ceiling, the weekly child care expenditure is equal to the expenditure ceiling.

Amounts to be deducted

D2(1) The amounts to be deducted under Step 2 in Method statement D1 are:

(a) any child care assistance that is paid to or on behalf of the person or the person's partner for the week; and

(b) any other amount specified in a determination in force under subpoint (2).

(3) A determination under subpoint (2) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 .

The expenditure ceiling

D3 The expenditure ceiling is as follows:

(a) if rebate is paid in respect of one ^* dependent child of the person, or the person's partner, for the week--$115;

(b) if rebate is paid in respect of two or more dependent children of the person, or the person's partner, for the week--$230.

Note: The amounts specified in this point are to be indexed in accordance with Module E.

E1 The amounts specified in the table below are to be indexed.

A mounts to be indexed
Item	Amount
1	The amount specified in subpoint A2(2) (definition of minimum fee )
2	Each amount specified in point C5
3	Each amount specified in point D3

Substituting a higher amount before first indexation

E2(1) The Minister may, in writing, before the day on which an amount is first indexed, determine that a higher amount is to be substituted for that amount. The determination has effect accordingly.

(2) A determination under subpoint (1) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 .

Regulations on indexation

E3(1) The regulations may:

(a) prescribe when an amount is to be indexed; and

(b) prescribe the way in which an amount is to be indexed; and

(c) make different provision in respect of different amounts.

Consequence of indexing amounts

E4 If an amount (the indexable amount ) is indexed in accordance with the regulations, this Schedule has effect as if the new amount (as indexed) were substituted for the indexable amount on the day when the indexation takes effect.

[ Minister's second reading speech made in the

House of Representatives on 26 June 1997

Senate on 29 October 1997 ]

(110/97)