Commonwealth Numbered Acts

FAMILY ASSISTANCE LEGISLATION AMENDMENT (CHEAPER CHILD CARE) ACT 2022 (NO. 66, 2022) - SCHEDULE 1

Part 1 -- Main amendments

A New Tax System (Family Assistance) Act 1999

1  Subsection 3(1)

Insert:

"fourth income (other rate) threshold " has the meaning given by subclause 3A(6) of Schedule 2.

2  Subsection 3(1) (definition of fourth income threshold )

Repeal the definition.

3  Subsection 3(1)

Insert:

"lower income (base rate) threshold " has the meaning given by subclause 3(4) of Schedule 2.

"lower income (other rate) threshold " has the meaning given by subclause 3A(6) of Schedule 2.

4  Subsection 3(1) (definition of lower income threshold )

Repeal the definition.

5  Subsection 3(1)

Insert:

"second income (other rate) threshold " has the meaning given by subclause 3A(6) of Schedule 2.

6  Subsection 3(1) (definition of second income threshold )

Repeal the definition.

7  Subsection 3(1)

Insert:

"third income (other rate) threshold " has the meaning given by subclause 3A(6) of Schedule 2.

8  Subsection 3(1) (definition of third income threshold )

Repeal the definition.

9  Subsection 3(1)

Insert:

"upper income (base rate) threshold " has the meaning given by subclause 3(4) of Schedule 2.

"upper income (other rate) threshold " has the meaning given by subclause 3A(6) of Schedule 2.

10  Subsection 3(1) (definition of upper income threshold )

Repeal the definition.

11  Subclause 3(1) of Schedule 2 (table)

Repeal the table, substitute:

12  Subclause 3(2) of Schedule 2 (formula)

Repeal the formula, substitute:

13  Subclause 3(3) of Schedule 2

Repeal the subclause.

14  Subclause 3(4) of Schedule 2

Repeal the subclause, substitute:

             (4)  In this Act:

"lower income (base rate) threshold " means $80,000.

Note:          This amount is indexed annually in line with CPI increases (see Schedule 4). However, the amount will not be indexed in 2023 (see subclause 3(9) of Schedule 4).

"upper income (base rate) threshold " means the lower income (base rate) threshold plus $450,000.

15  Subclause 3A(1) of Schedule 2

Omit "An individual's", substitute "Subject to subclause (2), an individual's".

16  At the end of subclause 3A(1) of Schedule 2

Add:

             ; and (c)  the individual's adjusted taxable income for the income year in which the CCS fortnight starts is below the upper income (other rate) threshold.

Note:          If the individual's adjusted taxable income for the income year in which the CCS fortnight starts is equal to or above the upper income (other rate) threshold, the individual's applicable percentage for the session of care is determined in accordance with clause 3.

17  Subclauses 3A(2) to (5) of Schedule 2

Repeal the subclauses, substitute:

             (2)  If the individual's applicable percentage for the session of care would be a higher percentage if it were determined in accordance with clause 3 than the percentage determined in accordance with this clause, the individual's applicable percentage for the session of care is that percentage determined in accordance with clause 3.

What is the applicable percentage?

             (3)  If this clause applies in relation to the individual for the session of care, the individual's applicable percentage for the session of care is determined by the following table.

             (4)  If table item 2 applies, the individual's applicable percentage for the session of care is the lesser of:

                     (a)  95%; and

                     (b)  the percentage worked out using the following formula and rounding the result to 2 decimal places:

             (5)  If table item 4 applies, the individual's applicable percentage for the session of care is the percentage worked out using the following formula and rounding the result to 2 decimal places:

             (6)  In this Act:

"fourth income (other rate) threshold " means the lower income (other rate) threshold plus $274,290.

"lower income (other rate) threshold " means $72,466.

Note:          This amount is indexed annually in line with CPI increases (see Schedule 4).

"second income (other rate) threshold " means the lower income (other rate) threshold plus $105,000.

"third income (other rate) threshold " means the lower income (other rate) threshold plus $184,290.

"upper income (other rate) threshold " means the lower income (other rate) threshold plus $284,290 .

18  Paragraph 13(2)(b) of Schedule 2

Omit "lower income threshold", substitute "lower income (base rate) threshold".

19  Clause 2 of Schedule 4 (table item 18)

Repeal the item, substitute:

20  Subclause 3(1) of Schedule 4 (table item 18)

Repeal the item, substitute:

21  At the end of clause 3 of Schedule 4

Add:

No indexation for CCS lower income (base rate) threshold in 2023

             (9)  The CCS lower income (base rate) threshold is not to be indexed on the first day of the first CCS fortnight of the income year starting on 1 July 2023.

22  Application of amendments

The amendments of the A New Tax System (Family Assistance) Act 1999 made by this Part apply in relation to sessions of care provided to a child in a CCS fortnight that starts in the income year in which this item commences or in a later income year.

Part 2 -- Other amendments

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

23  Paragraph 67CC(2)(d)

After "session of care", insert "in relation to which the individual is the claimant".

24  Application of amendments

Paragraph 67CC(2)(d) of the A New Tax System (Family Assistance) (Administration) Act 1999 , as amended by this Part, applies in relation to a week for which a report described in that paragraph has not been given to the Secretary, whether the week started before, on or after the commencement of this item.

Family Assistance Legislation Amendment (Child Care Subsidy) Act 2021

25  Part 2 of Schedule 2

Repeal the Part.