House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Family and Community Services, Senator the Hon. Jocelyn Newman)

Schedule 2 - amendment of the A New Tax System (Family Assistance) (Administration) Act 1999 - Part 2 - Amendments relating to child care benefit

Overview of Part 2 of Schedule 2

Division 4 of Part 3 of the Family AssistanceAdmin Act provides, in sections 49 to 63, for the making of regulations about how individuals and approved child care services can become entitled to payments of CCB, and how such payments are to be made. Sections 64 and 65 create offences for failure of approved child care services to comply with the requirements set out in section 42 and 47 of that Act to give the Secretary, for each instalment period (a calendar quarter or any other period determined by the Secretary), information needed to determine an individual's or the service's entitlement to CCB for that period.

Part 2 of Schedule 2 replaces the regulation-making provisions with substantive provisions in the family assistance law. The substantive provisions deal with:

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making claims for payment of CCB;

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tax file number requirements;

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determination of claims;

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payment of CCB (how, to whom);

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notification obligations of claimants (including offences for failure to comply with the obligations);

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Secretary's powers;

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variation of determinations;

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obligations of approved child care services; and

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payment of advances to approved child care services.

Part 2 also repeals the offence provisions in Division 4 as they are included in new Part 8A, Division 1, inserted by item 61 of this Schedule dealing with obligations of approved child care services. In addition, it inserts a number of CCB related definitions in section 3 of the Family Assistance Admin Act.

Explanation of the amendments

Items 53, 54, 55, 56, 57 ,58 and 59 insert the following definitions in section 3 of the Family Assistance Admin Act, mainly for the purposes of CCB:

`amount of the entitlement' is defined in item 53 as the amount determined in a determination of entitlement under new sections 51B, 52E, 52F, 53D and 54B inserted into the Family Assistance Admin Act by item 60 ;

`CCB%', `minimum taxable income %' schooling % and taxable income % in respect of CCB claimed by an individual are defined by reference to a provision in Schedule 2 to the Family Assistance Act under which these components of CCB rate are calculated ( items 54, 55, 57 and 58 refer).

`Reporting period' in respect of an approved child care service is defined as meaning a calendar quarter unless a different period has been determined by the Secretary in respect of a service or a class of services (if the Secretary determines a specified period, the service must be given a notice of the determination) ( items 56 and 59 refer).

`Determination' is defined as a determination as originally made or, if varied, as varied (this definition applies for the purposes of FTB and CCB) ( item 59 refers).

`CPC rate (combined pensioner couple rate)' at a particular time is defined as meaning twice the amount of the maximum basic rate of age pension payable at the time to a person under item 2 of Table B, point 1064-B1 of Pension Rate Calculator A in section 1064 of the Social Security Act 1991 ( item 59 refers).

Item 60 repeals Division 4 of Part 3 of the Family Assistance Admin Act, which provide for making of regulations relating to how individuals and approved childcare services become entitled to CCB and how payments are made, and substitutes a new Division 4 dealing with CCB.

NEW DIVISION 4 - CHILD CARE BENEFIT

New Subdivision A - Overview of process of fee reductions

New section 48 - Overview of process if individual is conditionally eligible for child care benefit by fee reduction

New section 48 gives an overview of a process that applies when an individual who claimed CCB by fee reduction was determined, under new section 50F, to be conditionally eligible for the benefit.

If an individual is so determined, the individual's fees for sessions of care provided by an approved child care service are reduced by the service (new subsection 48(1) refers).

The amount of fee reduction is calculated by the service using the provisions of the Family Assistance Act relating to the calculation of CCB as if those provisions referred to the calculation of fee reductions. Therefore, the amount of the fee reductions reflects the amount of CCB that would be paid to the individual if the individual's entitlement to the benefit was determined at the time the fees are reduced (new subsection 48(2) refers).

The reduction of fees occurs in anticipation of a determination of entitlement that the Secretary makes under new section 51B after the end of each income year, in respect of the conditionally eligible individual, the child and the sessions of care provided during the income year while the individual is conditionally eligible (new subsection 48(3) refers).

When a determination of entitlement is made by the Secretary in respect of an income year, if the amount of the entitlement is greater than the amount of fee reductions already received by the individual in respect of the sessions in the income year, the amount of the entitlement consists of the amount of the fee reductions received and the difference between that amount and the amount determined by the Secretary (new subsection 48(4) refers).

When a determination of entitlement is made by the Secretary in respect of an income year, if the amount of the entitlement is less than the amount of fee reductions already received by the individual in respect of the sessions in the income year, the amount of the entitlement is the amount of the fee reductions less the amount of the difference between the amount of the fee reductions and the amount determined by the Secretary (new subsection 48(5) refers).

The service is reimbursed for the fee reductions the service makes for care it provides to the child via periodic advances paid to the service under Division 2 of new Part 8A (new subsection 48(6) refers).

New Subdivision B - Making claims

New section 49 - Need for a claim

New subsection 49(1) provides that a person can only become entitled to be paid CCB by making a claim. New subsection 49(2) provides an exception to this rule where an approved child care service is eligible for CCB under new section 47 of the Family Assistance Act (child at risk); in this case a claim is taken to be made. The date of this claim is the date that the service reports that eligibility to the Secretary.

New section 49A - Who can make a claim

New section 49A provides that only individuals can make claims for CCB under this Subdivision. An approved child care service does not need to make a claim, as it is taken to have made a claim under new subsection 49(2).

New section 49B - What may be claimed by an individual

New section 49B provides that an individual may claim payment of CCB in one of four ways:

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payment of CCB by fee reduction for care provided by an approved child care service - that is, by ongoing reductions of child care fees;

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payment of CCB for a past period for care provided by an approved child care service - that is, as a lump sum; or

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payment of CCB for a past period for care was provided by a registered carer - that is, as a lump sum; or

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payment of CCB by single payment/in substitution because of the death of another individual - that is, as a lump sum.

New section 49C - Form etc. of effective claim by individual

New section 49C sets out the requirements that an individual must meet for a CCB claim to be effective.

New subsection 49C(1) provides that the claim must be made in a form and manner, contain any information, and be accompanied by any documents, that are required by the Secretary. The requirements set out in new sections 49G (bank account details), 49E and 49F (tax file numbers for claims for certain types of payment) must also be satisfied.

New subsections 49C(2), (3) and (4) set out exceptions to the rule that failure to provide required information renders a claim ineffective.

New subsection 49C(2) provides that where a claim is made for payment of CCB by fee reduction, the claim is not ineffective if a person fails to provide information relating to amounts needed to calculate the CCB%, the number of children the claimant had in care, whether the child was a school child, compliance with immunisation requirements, information relating to tax file numbers requested under new section 57B, and information relating to whether claimant chooses to have his CCB% calculated using the minimum taxable income %. This provision is subject to new section 49H (restrictions on claim).

New subsection 49C(3) provides that where a claim is made for payment of CCB for a past period for care provided by an approved child care service, the claim is not ineffective if a person fails to provide information relating to amounts needed to calculate the CCB%, the number of children the claimant had in care, and whether the child was a school child. This provision is subject to new section 49J (restrictions on claim).

New subsection 49C(4) provides that where a claim is made for payment of CCB by a single payment/in substitution for care provided by an approved child care service, the claim is not ineffective if a person fails to provide information relating to amounts needed to calculate the CCB%, the number of children the original claimant had in care, and whether the child was a school child. This provision is subject to new section 49L (restrictions on claim).

New section 49D - Deemed claim under subsection 49(2) effective in certain circumstances

New subsection 49D(1) provides that a deemed claim under subsection 49(2) (where an approved child care service is eligible for CCB) is effective if the service's eligibility is reported to the Secretary. Subsection 49D(2) provides that the report must be in the form and manner, contain any information, and be accompanied by any documents that are required by the Secretary. This section is subject to section 49M (restriction on claims).

New section 49E - Tax file number requirement to be satisfied for claim by individual for payment of child care benefit for a past period for care provided by an approved child care service to be effective

New section 49E sets out the tax file number requirement that must be satisfied in order for a claim for payment of CCB for a past period for care provided by an approved child care service to be effective. New subsection 49E(1) explains the purpose of the section, and new subsection 49E(2) provides that one of three kinds of statement must be provided in relation to each TFN claim person. "TFN claim person" is defined in section 3 as the claimant and the claimant's partner, or where the claim is for a past period, any partner of the claimant during the past period. The requirement does not apply if new subsections 49E(7) or (8) (see below) apply to a person. The three types of statement that may be provided are:

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a statement of the TFN person's tax file number. This statement can only be provided by the claimant (new subsection 49E(3));

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a statement by the TFN claim person that the person does not know their tax file number, and has asked the Commissioner of Taxation to inform the person of the number, and that authorises the Commissioner of Taxation to pass the relevant information to the Secretary (new subsection 49E(4));

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a statement by the TFN claim person that the person has a tax file number application pending, and that authorises the Commissioner of Taxation to tell the Secretary the outcome of the application (new subsection 49E(5)).

New subsection 49E(6) provides that a statement made by the claimant must be in the claim, and a statement made by another person must be in a form approved by the Secretary and submitted with the claim.

New subsection 49E(7) provides that the Secretary may exempt a person from the tax file number requirement if the person is or was the claimant's partner, and the claimant cannot obtain the person's tax file number or a statement from the person under new subsections 49E(4) or (5).

New subsection 49E(8) provides that the tax file number requirement does not apply where the claimant has opted to have his CCB% calculated using the minimum taxable income %.

New section 49F - Tax file number requirement to be satisfied for claim by individual for payment of child care benefit by single payment/in substitution because of the death of another individual to be effective

New section 49F sets out the tax file number requirement that must be satisfied in order for a claim for payment of CCB by a single payment/ substitution for care provided by an approved child care service to be effective. New subsection 49F(1) explains the purpose of the section, and new subsection 49F(2) provides that one of three kinds of statement must be provided in relation to each TFN substitution person. "TFN substitution person" is defined in section 3 as the deceased individual and any partner of the deceased during the period in respect of which the payment is claimed. The three types of statement that may be provided are:

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a statement of the TFN substitution person's tax file number. This statement can only be provided by the claimant (new subsection 49F(3));

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a statement by a TFN substitution person who was the deceased's partner that the person does not know their tax file number, and has asked the Commissioner of Taxation to inform the person of the number, and that authorises the Commissioner of Taxation to pass the relevant information to the Secretary (new subsection 49F(4));

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a statement by the TFN person who was the deceased's partner that the person has a tax file number application pending, and that authorises the Commissioner of Taxation to tell the Secretary the outcome of the application (new subsection 49F(5)).

New subsection 49F(6) provides that a statement made by the claimant must be in the claim, and a statement made by another person must be in a form approved by the Secretary and submitted with the claim.

New subsection 49F(7) provides that the Secretary may exempt a TFN substitution person from the tax file number requirement if claimant does not know the person's tax file number.

New subsection 49F(8) provides that the Secretary may exempt a TFN substitution person from the tax file number requirement if the claimant cannot obtain the a statement from the person under new subsections 49F(4) or (5).

New subsection 49F(9) provides that the Secretary may make an exemption from tax file number requirement where the claimant has opted to have his CCB% calculated using the minimum taxable income %.

New section 49G - Bank account details or statement to be provided for claims by individuals for child care benefit to be effective

New section 49G sets out the bank account requirement that must be satisfied in order for an individual's CCB claim to be effective. New subsection 49G(1) explains the purpose of the section, and new subsection 49G(2) sets out the requirement that the claimant must provide details of a bank account maintained by the claimant (either alone or jointly with another person) into which CCB is to be paid. Alternatively the claimant may give a statement that he or she will provide details of the bank account within 28 days of making the claim. New subsection 49G(3) provides that the above information must be given in the claim. New subsection 49G(4) provides that the Secretary may exempt the claimant from the bank account requirement if the Secretary considers it appropriate.

New section 49H - Restrictions on claims by an individual for payment of child care benefit by fee reduction

New section 49H sets out restrictions on individuals' claims for payment of CCB by fee reduction for care provided by an approved child care service (a fee reduction claim).

New subsection 49H(1) specifies the type of claims to which the section applies.

New subsection 49H(2) provides that a fee reduction claim is ineffective if at the time when the claimant's conditional eligibility would be determined (the "determination time"), the claimant had previously made a fee reduction claim in respect of the same child, and the first claim has not been determined, or as a result of that claim the claimant is already conditionally eligible for CCB by fee reduction.

New subsection 49H(3) provides that a fee reduction claim is ineffective if -

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the claimant had previously made a fee reduction claim in respect of the same child, and a determination of conditional eligibility in relation to that claim has been varied under sections 58A, 61A or 62 with the effect that the claimant is not conditionally eligible; and

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the determination time on the later claim, is before the end of the income year following the one in which the variation took effect.

These restrictions apply because the appropriate course of action is to undo the variation that the claimant is not conditionally eligible.

New subsection 49H(4) provides that an individual's fee reduction claim is ineffective if, at the determination time, an approved child care service is eligible for CCB for the child. This provision does not apply if the Secretary considers that special circumstances apply to the claim (new subsection 49H(5)).

New section 49J - Restrictions on claim by individual for payment of child care benefit for past period for care provided by an approved child care service

New section 49J sets out restrictions on individuals' claims for payment of CCB for a past period for care provided by an approved child care service (a past period claim).

New subsection 49J(1) specifies the type of claims to which the section applies.

New subsection 49J(2) provides that a past period claim is ineffective if the period does not fall within one income year (`income year' is defined in section 3 of the Family Assistance Act and has the same meaning as in the Income Tax Assessment Act 1997 ), or does fall within one income year but the claim is made within that year, or after the end of the following income year.

New subsection 49J(3) provides that a past period claim is ineffective if the claimant had previously made a claim for CCB for care provided by an approved child care service in respect of the same child for any part of the past period, whether or not the earlier claim has been determined. This provision does not apply if new subsection 49J(4) applies.

New subsection 49J(4) provides that a past period claim is effective if the claimant had previously made a claim for CCB for care provided in the past period by an approved child care service in respect of the child, and it was determined that the claimant was not eligible for CCB because the claimant failed to meet the conditions in paragraph 44(1)(a), (d) or (e) of the Family Assistance Act (relating to FTB child, Australian residence and immunisation). This is because the circumstances that led to the failure of the claim may have changed.

New subsection 49J(5) provides that a past period claim is ineffective if the claimant was conditionally eligible for CCB by fee reduction at any time during the past period.

New subsection 49J(6) provides that a past period claim is ineffective if

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the claimant had previously made a fee reduction claim in respect of the same child, and a determination on that claim has been varied under new sections 58A, 61A or 62 with the effect that the claimant is not conditionally eligible for CCB by fee reduction; and

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the time the later claim would be determined is before the end of the income year following the one in which the variation took effect.

This is because the appropriate course of action is to undo the variation that the claimant is not conditionally eligible.

New subsection 49J(7) provides that an individual's past period claim is ineffective in respect of any part of a past period during which an approved child care service was eligible for CCB for the child. This provision does not apply if the Secretary considers that special circumstances apply to the claim (subsection 49J(8)).

New section 49K - Restrictions on claim by individual for payment of child care benefit for past period of care provided by a registered carer

New section 49K provides restrictions on claims for payment of CCB for a past period for care provided by a registered carer (a past period claim).

New subsection 49K(1) specifies the type of claims to which the section applies.

New subsection 49K(2) provides that a past period claim is ineffective if it relates to a period of care, which occurred more than 12 months before the date of the claim.

New subsection 49K(3) provides that a past period claim is ineffective if the claimant has previously made a claim for CCB for care provided by a registered carer in respect of the same child for any part of the past period, whether or not the earlier claim has been determined. This provision does not apply if new subsection 49K(4) applies.

New subsection 49K(4) provides that a past period claim is effective if the claimant had previously made a claim for CCB for care provided in the past period by a registered carer in respect of the child, and it was determined that the claimant was not eligible for CCB because the claimant failed to meet the conditions in paragraph 45(1)(a), (f) or (g) of the Family Assistance Act (relating to FTB child, Australian residence, and immunisation). This is because the circumstances that led to the failure of the claim may have changed.

New section 49L - Restrictions on claim by individual for payment of child care benefit by single payment/in substitution because of the death of another individual

New section 49L provides restrictions on claims for payment of CCB by a single payment/substitution because of the death of another individual (a substitution claim).

New subsection 49L(1) specifies the type of claim to which the section applies.

New subsection 49L(2) provides that a substitution claim is ineffective if it is more than a year after the income year in which the death of the other individual occurred. `Income year' is defined in section 3 of the Family Assistance Act and has the same meaning as in the Income Tax Assessment Act 1997 .

New subsection 49L(3) provides that where a substitution claim is made for care provided by an approved child care service and a determination of conditional eligibility was in force in respect of the other individual, the claim is ineffective in respect of care provided in a particular income year if it is made within the same income year.

New subsection 49L(4) provides that a substitution claim for care provided by a registered carer is ineffective in respect of any period of care that occurred more than 12 months before the death of the other individual occurred. This is because the deceased individual would not have been able to claim for that care.

New subsection 49L(5) provides that a substitution claim is ineffective if the claimant has previously made a substitution claim in respect of the same child, the same period, and the same other individual. This applies whether or not the original claim has already been determined, but is subject to new subsections 49L(6) and (7).

New subsection 49L(6) provides that a substitution claim for care provided by an approved child care service is effective if the claimant has previously made a substitution claim, and it was determined that the claimant was not entitled to CCB because the other individual failed to meet the condition in paragraph 44(1)(a) or (e) of the Family Assistance Act (FTB child and immunisation). This is because the circumstances that led to the failure of the claim may have changed.

New subsection 49L(7) provides that a substitution claim for care provided by a registered carer is effective if the claimant has previously made a substitution claim, and it was determined that the claimant was not entitled to CCB because the other individual failed to meet the condition in paragraph 45(1)(a) or (g) of the Family Assistance Act (FTB child and immunisation). This is because the circumstances that led to the failure of the claim may have changed.

New section 49M - Restriction on claim by an approved child care service for payment of child care benefit by fee reduction for care provided by the service to a child at risk

New section 49M provides that a claim by an approved child care service for payment of CCB for care provided to a child at risk is ineffective if, at the time the care is provided, an individual is conditionally eligible for CCB in respect of the child.

New section 49N - Claims may be withdrawn or varied

New section 49N provides for the withdrawal or variation of claims.

New subsection 49N(1) provides that an individual claiming CCB by fee reduction may withdraw or vary the claim before a determination of conditional eligibility or of no entitlement is made on the claim.

Subsection 49N(2) provides that a claim may be withdrawn or varied before the claim is determined in the case of claims for CCB:

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for a past period for care provided by an approved child care service;

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for a past period for care provided by a registered carer; or

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by a single payment/ in substitution because of the death of another individual.

New subsection 49N(3) provides that the claim may only be withdrawn or varied in a manner determined by the Secretary, and new subsection 49N(4) provides that if a claim is withdrawn it is taken never to have been made.

New Subdivision C - Determinations to be made on claim if individual claims payment of child care benefit by fee reduction

The following pattern of determinations applies when an individual makes an effective claim for payment of CCB by fee reduction for care provided by an approved child care service to a child.

If the individual does not meet the requirements of conditional eligibility in section 42 of the Family Assistance Act (as substituted by item 54 of Part 2 of Schedule 1 to this Bill), a determination of no entitlement is made under new section 50G. If the individual meets the requirements of conditional eligibility in section 42, four determinations are made on claim: a determination of conditional eligibility under new section 50F, a determination of a weekly limit of hours under new section 50H, a determination of CCB % under new section 50J and a determination of schooling % under new section 50K. These determinations have an ongoing application and are used by the service to calculate the rate and amount of fee reductions applicable to the individual and the child for as long as the individual remains conditionally eligible. After the end of the income year in which the determinations were made, a determination of entitlement is made under new section 51B, or a determination of no entitlement is made under new section 51C (as the case may be), in respoect of that income year. Subsequently, after the end of each income year furing which the individual was conditionally eligible, a determination of entitlement, or no entitlement (as the case may be), is made in respect of that income year (the only trigger for the entitlement determination is the fact that a determination of conditional eligibility is in force for any part of the income year). If a determination of no entitlement is made in respect of a particular income year (which may happen where no sessions of care were provided during that year), that determination does not affect the determination of conditional eligibility, which continues to be in effect.

Determinations of conditional eligibility, weekly limit of hours, CCB % and schooling % may be varied, under new Subdivisions M, N, P, Q, R U and V, from the day specified in the variation. If varied, the determinations continue to be in force with the effect as varied.

New section 50 - Determinations on effective claim

New section 50 specifies that -

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new Subdivision C deals with determinations made, on claim, when an effective claim is made for payment of CCB by fee reduction for care provided by an approved child care service (a claim which is ineffective, is taken not to have been made);

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the determinations in question are made in respect of each child for whom the claim is made;

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the determinations are used by the service as a basis for reducing the claimant's fees during the income year in which care is provided; and

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after the end of the income year, a determination of entitlement (or no entitlement) is made in respect of the income year.

New section 50A - Secretary must make determinations

On claim, the Secretary is required to determine a claim, by making a determination of conditional eligibility under new section 50F, or a determination of no entitlement under section 50G, as provided for by new section 50B. (This requirement is subject to restrictions specified in new sections 50D and 50E.).

If a determination of conditional eligibility is made in respect of the claimant, the Secretary must also make a determination of a weekly limit of hours applicable to the claimant and the child the subject of the claim (under new section 50H), a determination of CCB % (under new section 50J) and a determination of schooling % (under new section 50K), as required by new section 50C.

New Section 50B - Determination of conditional eligibility or no entitlement to be made

New subsection 50B(1) lists the circumstances in which a determination of conditional eligibility under new section 50F, or a determination of no entitlement under new section 50G (as the case may be) is to be made, on claim, as soon as practicable. The relevant circumstances are:

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when the claimant gives the Secretary, in the claim form, a statement of the tax file numbers of each of the TFN claim persons, as requested under new section 57B (in accordance with the definition of `TFN claim person' inserted in section 3 of the Family Assistance Admin Act by item 65 of Part 3, Schedule 2 to this Bill, the TFN claim person in this case is the claimant and the claimant's partner);

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when the claimant gives the Secretary a statement of the claimant's tax file number and the Secretary exempts the claimant's partner under new subsection 57B(6) from the requirement to make a statement relating to the partner's tax file number; or

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when the claimant opts, in the claim form, to have the CCB % (applicable to the calculation of the rate of fee reductions and the rate of the benefit) calculated using the minimum taxable income % as the taxable income % (the effect of this option is that the CCB % is set at the minimum level).

New subsection 50B(2) provides that in circumstances other than those listed above, the making of a determination of conditional eligibility, or no entitlement, is subject to restrictions provided for in new section 50D.

New Section 50C - Other determinations to be made if determination of conditional eligibility is made

New section 50C provides that if a determination of conditional eligibility is made in respect of the claimant, the Secretary must also make a determination of a weekly limit of hours applicable to the claimant and the child who is the subject of the claim (under new section 50H), a determination of CCB % (under new section 50J) and a determination of schooling % (under new section 50K).

New Section 50D - Restriction on when determinations under sections 50F or 50G can be made

The Secretary may defer the making of a determination of conditional eligibility, or no entitlement determination in situations provided for in new section 50D relating to the TFN requirement that applies at claim. If the claimant provides the relevant TFNs in the claim form, the determinations can be made as soon as reasonably practicable (new section 50B refers).

Under new subsection 50D(1) however, if

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both TFN claim persons make a statement under new subsections 57B(3) or (4); or

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one of the TFN claim persons makes such a statement and the other TFN claim person gives the person's TFN; or

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the claimant makes such a statement and the Secretary exempts the claimant's partner under new subsection 57B(6) from the requirement to make any statement relating to TFN;

the Secretary can only make a determination of conditional eligibility or of no entitlement if:

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within 28 days of the claim, the Commissioner of Taxation tells the Secretary the relevant TFNs, or that the person who made a statement under new subsections 57B(3) or (4) has not applied for a TFN, or that the application by the person for a TFN has been refused, or that the person has withdrawn the application for a TFN; or

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after 28 days have passed without receiving any information from the Commissioner of Taxation.

If, in the claim form, neither TFNs nor the statements referred to in new subsection 57B(3) or (4) were given in respect of each TFN claim person, and the claimant did not opt for the application of the minimum taxable income % to the calculation of the claimant's CCB%, the Secretary may make a request under new section 57C for the provision of TFNs of each of the TFN claim persons.

Under new subsection 50D(3), if the request under new section 57C was made, and the claimant complies with the request within 28 days of the request, the Secretary can only make a determination of conditional eligibility, or a determination of no entitlement (as the case may be), when the claimant complies with the request.

Under new subsection 50D(4), if the request under new section 57C was made, and the claimant does not comply with the request within 28 days of the request, the Secretary can only make a determination of conditional eligibility, or no entitlement, after 28 days have passed.

Under new subsection 50D(2), if the request under new section 57C was not made, the Secretary must make a determination of conditional eligibility, or no entitlement, as soon as practicable.

New Section 50E - Restriction on determination under section 50F or 50G if bank account details not provided

The Secretary may also defer the making of a determination of conditional eligibility, or no entitlement, if the claimant makes a statement referred to in paragraph 49G(2)(b) relating to the provision of the claimant's bank account details. Under new subsection 50E(1), the Secretary may only make a determination of conditional eligibility, or no entitlement, if within 28 days after the claim is made, the claimant nominates the account and provides the required bank account details.

New subsection 50E(2) provides that if the Secretary cannot make the determination because 28 days have passed without the claimant providing the required bank account details, the claim is taken never to have been made.

New Section 50F - Determination of conditional eligibility

If the Secretary is satisfied that the claimant, at the time the Secretary makes the determination, is conditionally eligible under section 42 of the Family Assistance Act in respect of a child, the Secretary must determine that the claimant is conditionally eligible for CCB by fee reduction in respect of the child.

New Section 50G - Determination that no entitlement

If the Secretary is satisfied that the claimant, at the time the Secretary makes the determination, is not conditionally eligible under section 42 of the Family Assistance Act in respect of a child, the Secretary must determine that the claimant is not entitled to be paid CCB by fee reduction in respect of the child.

New Section 50H - Determination of weekly limit of hours

If the Secretary makes a determination of conditional eligibility under section 50F, the Secretary must determine the weekly limit of hours for which the claimant may be paid the benefit applicable to the claimant and the child. [Subdivision G of Division 4 of Part 3 of the Family Assistance Act, as amended by item 54 of Part 2 of Schedule 1 to this Bill, limits the number of hours of care in a week for which an individual, or a service, may be eligible for CCB to the number of hours worked out under that Subdivision.].

New subsection 50H(2) provides access, for the purposes of working out the limit applying to individuals who are conditionally eligible, to the provisions of Subdivision G of Division 4 of Part 3 of the Family Assistance Act under which the weekly limit of hours is determined for individuals who are `eligible' for CCB. When determining the limit of hours for a conditionally eligible individual, references in that Subdivision to a person eligible are to be treated as if they were references to a person conditionally eligible under section 42 of that Act.

New subsection 50H(3) provides that the weekly limit of hours determined under this section must be 50 hours only if circumstances referred to in subsection 54(2), (4), (6), (13) or (14) apply; otherwise a 20 hours limit applies.

A determination of a weekly limit of hours under this section may be later varied, under new Subdivision N, R, U or V with the effect that a different limit will apply from a day specified in the variation (a later day than the day on which a determination under new section 50H comes into force).

New Section 50J - Determination of CCB%

If the Secretary makes a determination of conditional eligibility under section 50F, the Secretary must determine the CCB % applicable to the claimant and the child.

CCB % (worked out under subclause 2 of Part 1 of Schedule 2 to the Family Assistance Act) is a component of rate of CCB claimed by an individual for care provided by an approved child care service.

Schedule 2 to the Family Assistance Act includes provisions under which CCB % is worked out for individuals who are `eligible' for CCB. These provisions are therefore to be used when entitlement determinations under new sections 51B, 52E and 53D are made.

New subsection 50J(2) provides access to the provisions of Schedule 2 to the Family Assistance Act for the purposes of working out the CCB % applying to individuals who are conditionally eligible. When determining CCB % for a conditionally eligible individual, references in that Schedule to a person eligible for CCB are to be treated as if they were references to a person conditionally eligible under section 42 of that Act.

New Section 50K - Determination of schooling %

If the Secretary makes a determination of conditional eligibility under section 50F, the Secretary must determine the schooling % applicable to the claimant and the child.

Schooling % (worked out under subclause 2 of Part 1 of Schedule 2 to the Family Assistance Act) is a component of rate of CCB claimed by an individual for care provided by an approved child care service.

Schedule 2 to the Family Assistance Act includes provisions under which schooling % is worked out for individuals who are `eligible' for CCB. These provisions are therefore to be used when entitlement determinations under new section 51B, 52E and 53D are made.

New subsection 50K(2) provides access to the provisions of Schedule 2 to the Family Assistance Act for the purposes of working out the schooling % applying to individuals who are conditionally eligible. When determining the schooling % for a conditionally eligible individual, references in that Schedule to a person eligible for CCB are to be treated as if they were references to a person conditionally eligible under section 42 of that Act.

New Section 50L - When determinations are in force

New subsection 50L(1) expresses the rule that a determination of conditional eligibility under section 50F comes into force on the day the determination is made, or on the day specified in the notice of the determination, and remains in force at all times afterwards.

However, new subsection 50L(2) allows the Secretary to specify, as the day the determination comes into force, a day not more than 4 weeks before the day the claim was made. This exception only applies if the Secretary is satisfied that the claimant meets the conditional eligibility requirements in section 42 of the Family Assistance Act on a day before the claim and since that day (new subsection 50L(3) refers).

The 4-week backdating exception is subject to a restriction under new subsection 50L(4). The Secretary is not allowed to specify a day before the day the determination is made as the day on which the determination of conditional eligibility comes into force if the determination is made on a claim that was made while an earlier determination of conditional eligibility was in force in respect of the claimant with the effect that the claimant was not conditionally eligible as a result of the variation under section 58B (which relates to failure to comply with immunisation requirement).

New subsection 50L(5) provides that determinations of weekly limit of hours, CCB % and schooling % in respect of the claimant and the child come into force at the same time the determination of conditional eligibility comes into force and remains in force while the determination of conditional eligibility is in force.

New subsection 50L(6) provides for the cessation of the determination of conditional eligibility when a determination of conditional eligibility in force in respect of a claimant was varied with the effect that the claimant was not conditionally eligible and the claimant made a new claim for payment of CCB by fee reduction. In this situation, the previous determination of conditional eligibility (as varied) ceases to be in force on the day on which a determination in respect of the latter claim comes into force.

New subsection 50L(7) provides for the cessation of the determination of conditional eligibility on request of the claimant. In this situation, the determination of conditional eligibility ceases to be in force on the day specified in the notice under new subsection 50L(8).

New subsection 50L(8) specifies the requirements of the notice. The notice must be given to the claimant and the service concerned and must specify the day on which the determination ceases to be in force. The cessation is not ineffective if these notice requirements are not complied with.

New Section 50M - Notice of determinations if claimant conditionally eligible

The Secretary is required, under new section 50M, to give the claimant, and the service, or services, that the claimant indicates are, or will, provide care to the child who is the subject of the claim, the notice of determinations of conditional eligibility, weekly limit of hours, CCB % and schooling % applicable to the claimant and the child.

New subsection 50M(2) specifies the details of the notice. New subsection 50M(3) provides that the determinations are not ineffective if the notice requirements are not complied with.

New Section 50N - When determination of no entitlement is in force

New subsection 50N(1) expresses the rule that a determination of no entitlement under section 50G comes into force on the day the determination is made and remains in force at all times afterwards.

New subsection 50N(2) provides for the cessation of the determination of no entitlement when, following the determination of no entitlement, the claimant makes a new effective claim for payment of CCB by fee reduction, or for a past period for care provided by an approved child care service. In this situation, the previous determination of no entitlement ceases to be in force on the day on which a determination in respect of the later claim comes into force.

New Section 50P - Notice of determination of no entitlement

The Secretary is required, under new section 50P, to give the claimant a notice of a determination of no entitlement made under section 50G. The notice must also state that the claimant may apply for review of the determination. New subsection 50P(2) provides that the determination is not ineffective if the notice requirements are not complied with.

New Subdivision D - Determination of entitlement if individual determined to be conditionally eligible for child care benefit by fee reduction

New Section 51 - Determination to be made if determination of conditional eligibility in force

New section 51 specifies that this Subdivision deals with a determination of entitlement if a determination of conditional eligibility is in force in respect of an individual and a child at any time during an income year.

New Section 51A - Secretary must determine entitlement

New section 51A requires the Secretary to make a determination of a claimant's entitlement, after the end of each income year, for that income year, if during that year a determination of conditional eligibility was in force (for any length of time) in respect of the claimant.

New Section 51B - Determination of entitlement

If the Secretary is satisfied that the claimant is eligible under section 43 of the Family Assistance Act for CCB by fee reduction in respect of a session of care provided by an approved child care service to a child during an income year, the Secretary must determine that the claimant is entitled to be paid CCB by fee reduction, and assess the rate and the amount for which the claimant is eligible for that income year.

New subsection 51B(2) states that in making the determination of entitlement, the Secretary takes into account determinations made in respect of the claimant during the income year and certificates of rate and weekly limit of hours given by the service in respect of the claimant during the year.

New Section 51C - Determination that no entitlement

If the Secretary is not satisfied that the claimant is eligible under section 43 of the Family Assistance Act as specified in new section 51B for a particular income year, the Secretary must determine that the claimant is not entitled to be paid CCB by fee reduction in respect of that year.

New Section 51D - When determination is in force

A determination under this Subdivision comes into force when it is made and remains in force at all times afterwards.

New Section 51E - Notice of determination

New section 51E requires the Secretary to give notice of the entitlement, or no entitlement, determination under this Subdivision to the claimant. New subsection 51E(1) specifies the requirements of the notice. New subsection 51E(2) provides that a determination is not ineffective if those notice requirements are not complied with.

New Subdivision E - Determination of entitlement if individual claims payment of child care benefit for a past period

New Section 52 - Determination on effective claim

This new section specifies that this new Subdivision deals with a determination of entitlement, made in respect of an individual and each child who is the subject of the claim, if an individual has made an effective claim for payment of CCB for a past period for care provided by an approved child care service, or for care provided by a registered carer. If a claim is not effective, it is taken not to have been made.

New Section 52A - Secretary must determine claim

On claim, the Secretary is required to determine a claim (by making a determination of entitlement under new section 52E or 52F, as appropriate, or a determination of no entitlement under section 52G). This requirement is subject to restrictions specified in new sections 52B, 52C and 52D where bank account details have not been provided or tax file number requirement has not been met or tax assessment has not been made.

New Section 52B - Restriction on determining claim where bank account details not provided

This restriction applies to claims for payment of CCB for a past period for care provided by an approved child care service and for care provided by a registered carer.

The Secretary may defer determining the claim if the claimant makes a statement referred to in paragraph 49G(2)(b) relating to the provision of the claimant's bank account details. Under new subsection 52B(1), the Secretary may only determine the claim, if within 28 days after the claim is made, the claimant nominates the account and provides the required bank account details.

New subsection 52B(2) provides that if the Secretary cannot make the determination because 28 days have passed without the claimant providing the required bank account details, the claim is taken never to have been made.

New Section 52C - Restriction on determining claim where tax file number not provided etc.

This restriction applies to a claim for payment of CCB for a past period for care provided by an approved child care service.

Under new section 49E, the tax file number requirement must be satisfied for such a claim to be effective. If the TFN claim person (as defined in subsection 3(1) of the Family Assistance Admin Act) makes a statement under new subsection 49E(4) or (5), the claim is effective. However, under new subsection 52C(1), the Secretary can only determine the claim if the Commissioner of Taxation tells the Secretary the person's tax file number.

New subsection 52C(2) provides that if the Commissioner of Taxation tells the Secretary that the person does not have a tax file number, or has not applied for a TFN, or that the application by the person for a TFN has been refused, or that the person has withdrawn the application for a TFN, the claim is taken never to have been made.

New Section 52D - Restriction on determining claim for care provided by an approved child care service when tax assessment not made

This restriction applies to a claim for payment of CCB for a past period for care provided by an approved child care service.

This new section provides that such a claim can only be determined before all necessary tax assessments have been made if the claimant opted, in the claim form, to have the CCB% applicable to him or her, calculated at the minimum level or if tax assessments is made in relation to the TFN claim person who is required to lodge an income tax return for the income year for which CCB is claimed.

New Section 52E - Determination of entitlement - claim for care provided by an approved child care service

If the Secretary is satisfied that the claimant is eligible under section 44 of the Family Assistance Act for CCB for a past period for care provided by an approved child care service to a child, the Secretary must determine that the claimant is entitled to be paid CCB for the past period and determine the amount of the entitlement.

New Section 52F - Determination of entitlement - claim for care provided by a registered carer

If the Secretary is satisfied that the claimant is eligible under section 45 of the Family Assistance Act for CCB for a past period for care provided by a registered carer to a child, the Secretary must determine that the claimant is entitled to be paid CCB for the past period for the child and determine the amount of the entitlement.

New Section 52G - Determination that no entitlement

If the Secretary is not satisfied that the claimant for CCB for care provided to a child by an approved child care service is eligible under section 44, or the claimant for CCB for care provided to a child by a registered carer is eligible under section 45, of the Family Assistance Act, the Secretary must determine that the claimant is not entitled to be paid CCB for the past period in respect of the child.

New Section 52H - When a determination is in force

New subsection 52H(1) expresses the rule that a determination under this Subdivision comes into force when it is made and remains in force at all times afterwards.

New subsections 52H(2) and (3) specify two situations in which a determination of no entitlement made in respect of an earlier claim ceases to be in force.

New subsection 52H(2) provides that a determination of no entitlement made because of a failure to meet a requirement in paragraph 44(1)(a), (d) or (e) (relating to FTB child, Australian residence requirement and the immunisation requirement) ceases to be in force on the day on which a subsequent claim made by the claimant for CCB for a past period for care provided by an approved child care service is determined.

New subsection 52H(3) provides that a determination of no entitlement made because of a failure to meet a requirement in paragraph 45(1)(a), (f) or (g) (relating to FTB child, Australian residence requirement and the immunisation requirement) ceases to be in force on the day on which a subsequent claim made by the claimant for CCB for a past period for care provided by a registered carer is determined.

New Section 52J - Notice of determination

New section 52J requires the Secretary to give notice of the entitlement, or no entitlement, determination under this Subdivision to the claimant. New subsection 52J(1) specifies the requirements of the notice. New subsection 52J(2) provides that a determination is not ineffective if those notice requirements are not complied with.

New Subdivision F - Determination of entitlement if individual claims payment of child care benefit by single payment/in substitution

New Section 53 - Determination on effective claim

New section 53 specifies that this new Subdivision deals with a determination of entitlement if an effective claim is made for payment of CCB by single payment/in substitution because of the death of another individual. If the claim is not effective, it is taken not to have been made.

New Section 53A - Secretary must determine claim

On claim, the Secretary is required to determine a claim (by making a determination of entitlement under new section 53D, or a determination of no entitlement under section 53E). This requirement is subject to restrictions specified in new sections 53B and 53C when bank account details have not been provided or tax file number requirement has not been met.

New Section 53B - Restriction on determining claim where bank account details not provided

The Secretary may defer the determination of a claim, if the claimant makes a statement referred to in paragraph 49G(2)(b) relating to the provision of the claimant's bank account details. Under new subsection 53B(1), the Secretary may only make a determination of entitlement, or no entitlement (as the case may be), if within 28 days after the claim is made, the claimant nominates the account and provides the required bank account details.

New subsection 53B(2) provides that if the Secretary cannot make the determination because 28 days have passed without the claimant providing the required bank account details, the claim is taken never to have been made.

New Section 53C - Restriction on determining claim where tax file number not provided etc.

Under new section 49F, the tax file number requirement must be satisfied for a claim for CCB by single payment/in substitution because of the death of another individual to be effective. If the TFN substitution person (defined in subsection 3(1) of the Family Assistance Admin Act as the deceased individual and any partner of the deceased individual during the period for which the benefit is claimed) makes a statement under new subsection 49F(4) or (5), the claim is effective. However, under new subsection 53C(1), the Secretary can only determine the claim if the Commissioner of Taxation tells the Secretary the person's tax file number.

New subsection 53C(2) provides that if the Commissioner of Taxation tells the Secretary that the person does not have a tax file number, or has not applied for a TFN, or that the application by the person for a TFN has been refused, or that the person has withdrawn the application for a TFN, the claim is taken never to have been made.

New Section 53D - Determination of entitlement

If the Secretary is satisfied that the claimant is eligible under section 46 of the Family Assistance Act for CCB by single payment/in substitution because of the death of another individual for care provided to a child, the Secretary must determine that the claimant is entitled to be paid that CCB for the child and must determine the amount for which the Secretary considers the claimant to be eligible.

New Section 53E - Determination that no entitlement

If the Secretary is not satisfied that the claimant for CCB by single payment/in substitution because of the death of another individual for care provided to a child is eligible under section 46 of the Family Assistance Act, the Secretary must determine that the claimant is not entitled to be paid CCB by single payment/in substitution because of the death of another individual in respect of the child.

New Section 53F - When determination is in force

New subsection 53F(1) expresses the rule that a determination under this Subdivision comes into force when it is made and remains in force at all times afterwards.

New subsections 53F(2) and (3) specify two situations in which a determination of no entitlement made in respect of an earlier claim ceases to be in force.

New subsection 53F(2) provides that a determination of no entitlement, made on a claim for CCB by single payment/in substitution for care provided to a child, because of a failure to meet a requirement in paragraph 44(1)(a) or (e) (relating to FTB child and the immunisation requirement) ceases to be in force on the day on which a subsequent claim made by the claimant for CCB by single payment/in substitution for care provided to the child is determined.

New subsection 53F(3) provides that a determination of no entitlement, made on a claim for CCB by single payment/in substitution for care provided to a child, because of a failure to meet a requirement in paragraph 45(1)(a) or (g) (relating to FTB child and the immunisation requirement) ceases to be in force on the day on which a subsequent claim made by the claimant for CCB by single payment/in substitution for care provided to the child is determined.

New Section 53G - Notice of determination

New section 53G requires the Secretary to give the claimant the notice of the entitlement, or no entitlement, determination (as the case may be), made under this Subdivision. New subsection 53G(1) specifies the requirements of the notice. New subsection 53G(2) provides that a determination is not ineffective if those notice requirements are not complied with.

New Subdivision G - Determination of entitlement if claim by approved child care service for payment of child care benefit by fee reduction for care provided by the service to a child at risk

New Section 54 - Determination on effective claim

New section 54 specifies that this new Subdivision deals with a determination of entitlement if an approved child care service made an effective claim for payment of CCB by fee reduction for care provided by the service to a child at risk of serious abuse or neglect (under new subsections 49(2) and 49D, a service is taken to have made an effective claim if the service's eligibility under section 47 of the Family Assistance Act is reported by the service to the Secretary).

New subsection 54(2) provides that if an effective claim is made by the service, a determination of a weekly limit of hours under new section 54C is taken to have been made in respect of the service.

New Section 54A - Secretary must determine claim

The Secretary is required to determine a claim (by making a determination of entitlement under new section 54B).

New Section 54B - Determination of entitlement

New subsection 54B(4) specifies that this determination is made after the end of each financial year during which the service was eligible under section 47 of the Family Assistance Act in respect of a child. The effect of this provision is that if a service reports to the Secretary during a financial year its eligibility under section 47 of the Family Assistance Act in respect of care provided to the child during that year, a determination of entitlement is made in respect of the service and the child after the end of the financial year.

When a child is considered by the service to be at risk of serious abuse or neglect, an approved child care service makes its own decision as to its eligibility under section 47 of the Family Assistance Act (the Secretary does not determine the service's eligibility - new subsection 54B(3) refers). Therefore, if the service makes a claim, by reporting to the Secretary its eligibility under section 47 of that Act, the service will always be entitled to be paid the CCB so claimed.

New subsection 54B(1) provides that, if the claimant considers itself eligible under section 47 of the Family Assistance Act for CCB by fee reduction for one or more sessions of care provided to a child at risk during a financial year (the decision in respect of the eligibility belongs to a service), and reports that eligibility to the Secretary, the Secretary must determine that the claimant is entitled to be paid CCB for the child. The Secretary must also determine the amount for which the Secretary considers the claimant to be eligible.

New subsection 54B(2) provides that in determining the amount, the Secretary takes into account the CCB rate and the weekly limit of hours that applies as a result of certificates given by the service in circumstances specified in subsections 54(10), 55(6), 56(4) and 76(2) of the Family Assistance Act and any determination (of rate and weekly limit of hours) made by the Secretary during the financial year in respect of the service and the child. As a service's decisions are not reviewable (section 104 of the Family Assistance Admin Act, as amended by item 103 of Part 3 of Schedule 2 of this Bill, refers) the Secretary cannot alter the rate and the limit of hours that applies as a result of the service's certificates.

New Section 54C - Determination of weekly limit of hours

Subdivision G of Division 4 of the Family Assistance Act, as amended by item 54 of Part 2 of Schedule 1 to this Bill, limits the number of hours of care in a week for which an individual, or a service, may be eligible for CCB to the number of hours worked out under that Subdivision.

If a service is eligible for CCB under section 47 of the Family Assistance Act, a determination of a weekly limit of hours applicable to the service and the child is taken to have been made under new section 54C with the effect that the limit is 20 hours.

That determination may be later varied under new Subdivision U with the effect that a different limit will apply from a day specified in the determination (a later day that the day on which a determination under new section 54C comes into force).

New Section 54D - Notice of determination

New section 54D requires the Secretary to give the claimant the notice of the entitlement determination made under this Subdivision. New subsection 54D(1) specifies the requirements of the notice. New subsection 54D(2) provides that a determination is not ineffective if those notice requirements are not complied with.

New Subdivision H - Matters relating to determinations

This Subdivision deals with matters relating to the calculation of CCB % and schooling %. CCB % and schooling % are components of rate of CCB claimed by an individual for care provided by an approved child care service.

If the Secretary makes a determination of conditional eligibility under section 50F, the Secretary must determine the CCB % and schooling % applicable to the claimant and the child.

Both CCB % and schooling % are worked out under subclause 2 of Part 1 of Schedule 2 to the Family Assistance Act.

New sections 55, 55A, 55B and 55C deal with matters relevant to the determination of CCB % and new section 55D deals with matters relevant to the determination of schooling %.

New Section 55 - Determination of CCB % under section 50I may be based on estimate

This new section applies when a CCB % is required to be determined under new section 50J in respect of a conditionally eligible individual.

CCB % applicable to an individual and a child is calculated on the basis of the individual's adjusted taxable income for the current income year. [Adjusted taxable income is defined in clause 2 of Schedule 3 to the Family Assistance Act.]. If the individual is a member of a couple, the partner's taxable income for the appropriate year is also relevant.

Where a claim is made for CCB by fee reduction, an individual's taxable income for the relevant income year will not be known. Accordingly, new section 55 allows the Secretary to use a reasonable estimate of the amount provided by the individual for the purposes of calculating the CCB% applicable to the individual and the child.

Under new subsection 55(2), if the individual does not give the Secretary a reasonable estimate of the individual's taxable income, the CCB% applicable to the individual will be calculated using the minimum taxable income % as the taxable income %, with the effect that the CCB% will be set at the minimum level. The consequence specified in subsection 55(2) does not apply to an income support recipient.

New Section 55A - Determination of rate under Subdivision F may be based on estimate

If an individual claims CCB by single payment/in substitution because of the death of another individual, the deceased individual's CCB% is calculated on the basis of that individual's taxable income for the year for which the claim is made. If the deceased individual was a member of a couple, the partner's taxable income for the appropriate year is also relevant.

When a claim is made, the other individual's taxable income for the relevant income year may not be known. Accordingly, new section 55A allows the Secretary to use a reasonable estimate of the amount provided by the claimant for the purposes of calculating the CCB% applicable to the other individual and the child. Under new subsection 55A(2), if the claimant does not give the Secretary a reasonable estimate of the other individual's taxable income, the CCB% will be calculated using the minimum taxable income % as the taxable income %, with the effect that the CCB% will be set at the minimum level.

New Section 55B - CCB% applicable to individual when certain other information not provided

New section 55B applies to the calculation of CCB % where an individual makes a claim for CCB by fee reduction or for CCB for a past period for care provided by an approved child care service or for CCB by single payment/in substitution for care provided by an approved child care service.

This new section deals with 2 situations in which the applicable CCB% is to be set at the minimum level.

If the claimant, in the claim form, opted to have the CCB % calculated under Schedule 2 to the Family Assistance Act using the minimum taxable income % as the taxable income %, the CCB % is to be so calculated, with the effect that the CCB % is set at the minimum level.

If the information required to work out the number of children the claimant (or the deceased individual, in the case of a claim by single payment/in substitution) has, or had, in care of a particular kind, the CCB % is calculated using the minimum taxable income % as the taxable income, with the effect that the CCB % is set at the minimum level.

New Section 55C - CCB% applicable to individual when tax file number information not given

New section 55C applies to the calculation of CCB % where an individual makes a claim for CCB by fee reduction.

In the following situations the CCB % is calculated using the minimum taxable income % as the taxable income, with the effect that the CCB % is set at the minimum level:

•

if, in the claim, the person (the individual or the individual's partner) makes a statement that the person has a tax file number but does not know what the number is or makes a statement that the person applied for a tax file number and a determination of conditional eligibility is made, as provided for in new section 50D, after the Commissioner of Taxation tells the Secretary that the person does not have a TFN, or has not applied for TFN or the application was withdrawn or refused;

•

if, in the claim, none of the TFN statements referred to in section 57B are made, the exemption referred to in new subsection 57B(6) does not apply, the claimant does not opt to have the CCB % set at the minimum level, the Secretary makes a request under new section 57C that the claimant provide the relevant TFNs and determination of conditional eligibility is made, as provided for in new section 50D, after 28 days have passed without the claimant complying with the request.

New Section 55D - Schooling % applicable to individual when certain information not provided

This new section applies to the calculation of schooling % where an individual makes a claim for CCB by fee reduction or for CCB for a past period for care provided by an approved child care service or for CCB by single payment/in substitution for care provided by an approved child care service.

If, in the claim, the information whether the child who is the subject of the claim is a school child (attends school) or not is not provided, the applicable schooling % is determined to be 85% (if the information is provided, the schooling % applicable to the child that is not a school child is 100 %).

New Subdivision J - Payment

New Section 56 - Payment in respect of claim for child care benefit by fee reduction where claim for payment by individual

Under new subsection 56(1), the Secretary must pay to a claimant (being an individual) the amount of the difference between the amount of the entitlement of child care benefit and the total amount of fee reductions (if any) where the fees for sessions of care provided during an income year were reduced by an approved child care service under new section 219A. The amount of the difference is to be paid at such time as the Secretary considers appropriate and to the credit of a bank account nominated and maintained by the claimant.

While the general rule is that the claimant entitled to child care benefit is to be paid at such time and in such manner as the Secretary considers appropriate, there may be occasions when it is appropriate for the Secretary to pay someone else on behalf of the claimant. The power to do so is contained in new subsection 56(2). This may happen where the claimant is incapable of looking after his or her own affairs or in cases where the claimant asks the Secretary to make such a direction. It is envisaged that the discretion in new subsection 56 (2) would be used infrequently where the claimant does not consent to the direction. A decision by the Secretary under this provision is subject to review.

Under new subsection 56(3), the Secretary may direct that the whole or a part of an amount, which is to be paid to a claimant, is to be paid in a different way than to the credit of a bank account. If a direction is given, then the amount is to be paid in accordance with the direction. This provision enables a payment to be made to a claimant, for example, by way of cheque.

New subsection 56(4) provides that new section 56 is subject to Part 4 of the Family Assistance Admin Act, which deals with overpayments and debt recovery.

New Section 56A - Payment of child care benefit for a past period and by single payment/in substitution

Under new subsection 56A(1), the Secretary must pay the amount of the entitlement of child care benefit to a claimant (being an individual) if the claimant is entitled to be paid child care benefit for a past period of care provided by either an approved child care service or a registered carer or the claimant is entitled to be paid child care benefit by single payment/in substitution. The amount payable is to be paid at such time as the Secretary considers appropriate and to the credit of a bank account nominated and maintained by the claimant.

While the general rule is that the claimant entitled to child care benefit is to be paid at such time and in such manner as the Secretary considers appropriate, there may be occasions when it is appropriate for the Secretary to pay someone else on behalf of the claimant. The power to do so is contained in new subsection 56A(2). This may happen where the claimant is incapable of looking after his or her own affairs or in cases where the claimant asks the Secretary to make such a direction. It is envisaged that the discretion in new subsection 56A(2) would be used infrequently where the claimant does not consent to the direction. A decision by the Secretary under this provision is subject to review.

Under new subsection 56A(3), the Secretary may direct that the whole or a part of an amount which is to be paid to a claimant is to be paid in a different way from that provided in new subsection 56A(1). If a direction is given, then the amount is to be paid in accordance with the direction. This provision enables a payment to be made to a claimant by way, for example, of cheque.

New subsection 56A(4 ) provides that new section 56A is subject to Part 4 of the Family Assistance Admin Act, which deals with overpayments and debt recovery.

New Section 56B - Payment of child care benefit by fee reduction where claim by an approved child care service

Under new subsection 56B(1), the Secretary must pay, to the claimant (being an approved child care service), the amount of the difference between the amount of the entitlement of child care benefit by fee reduction for sessions of care provided to a child at risk during a financial year and the total amount already received by the claimant in respect of the financial year from one or more payments of an advance amount to cover the costs of providing care to the child at risk. The amount payable is to be paid at such time as the Secretary considers appropriate and to the credit of a bank account nominated and maintained by the claimant.

Under new subsection 56B(2), the Secretary may direct that the whole or a part of an amount which is to be paid to a claimant is to be paid in a different way from that provided in new subsection 56B(1). If a direction is given, then the amount is to be paid in accordance with the direction. This provision enables a payment to be made to a claimant, for example, by way of cheque.

New subsection 56B(3) provides that new section 56B is subject to Part 4, which deals with overpayments and debt recovery.

New Subdivision K - Obligations to notify change of circumstances

New Section 56C - Individual's obligation to notify change of circumstances

New subsection 56C(1) provides that a claimant (being an individual), who is subject to a determination of conditional eligibility made under new section 50F, must notify the Secretary if anything happens that causes the claimant to cease to be conditionally eligible or if the claimant becomes aware that anything is likely to happen that will have that effect. The claimant must notify the Secretary in the manner set out in the written notice given to the claimant under new section 57 as soon as practicable after becoming aware of the change in circumstances. There is a penalty for failing to comply with these obligations.

New subsection 56C(2) provides that a claimant (being an individual), who is subject to a determination of conditional eligibility made under new section 50F and a CCB % determination made under new section 50J where CCB % is calculated using Schedule 2 to the Family Assistance Act, must notify the Secretary if anything happens that causes a reduction in the CCB % or the claimant becomes aware that anything is likely to happen that will have that effect as soon as practicable after becoming aware. The claimant in notifying the Secretary must do so in the manner set out in the written notice given to the claimant under new section 57. There is a penalty for failing to comply with these obligations. Obligations under this subsection do not apply to an individual whose CCB% is set at the minimum level.

New subsection 56C(3 ) provides that a claimant (being an individual), who is subject to a determination of conditional eligibility made under new section 50F and a weekly limit of hours determination made under new section 50H that is more than 20 hours for a reason other than the child being at risk, must notify the Secretary if anything happens that causes a reduction in the weekly limit of hours or the claimant becomes aware that anything is likely to happen that will have that effect as soon as practicable after becoming aware. The claimant in notifying the Secretary must do so in the manner set out in the written notice given to the claimant under new section 57. There is a penalty for failing to comply with these obligations.

New subsection 56C(4) provides that a claimant (being an individual), who is subject to a determination of conditional eligibility made under new section 50F and a weekly limit of hours determination made under new section 50H that is a 24 hour care limit with one or more 24 hour care period, must notify the Secretary if anything happens that causes a reduction in the number of 24 hour care periods in a week or the claimant becomes aware that anything is likely to happen that will have that effect as soon as practicable after becoming aware. The claimant in notifying the Secretary must do so in the manner set out in the written notice given to the claimant under new section 57. There is a penalty for failing to comply with these obligations.

New subsection 56C(5) provides that a claimant (being an individual), who is subject to a determination of conditional eligibility made under new section 50F and a schooling % determination made under new section 50K under which the schooling % is 100%, must notify the Secretary if anything happens that causes a reduction in the schooling % to 85% or the claimant becomes aware that anything is likely to happen that will have that effect as soon as practicable after becoming aware. The claimant in notifying the Secretary must do so in the manner set out in the written notice given to the claimant under new section 57. There is a penalty for failing to comply with these obligations.

New subsection 56C(6) provides that a claimant (being an individual and a child), who is subject to a determination of conditional eligibility made under new section 50F and the rate of child care benefit for a session of care determined under subsection 81(2) of the Family Assistance Act (because of hardship), must notify the Secretary if anything happens that affects the rate determined or the claimant becomes aware that anything is likely to happen that will have that effect as soon as practicable after becoming aware. The claimant in notifying the Secretary must do so in the manner set out in the written notice given to the claimant under new section 57. There is a penalty for failing to comply with these obligations.

New Section 56D - Approved child care service's obligation to notify change of circumstances

New subsection 56D(1) provides that a claimant (being an approved child care service), who is eligible under section 47 of the Family Assistance Act for child care benefit by fee reduction for a child at risk and a weekly limit of hours determination made under new section 54C in respect of the claimant and the child is in force and the weekly limit of hours is more than 20 because of the application of either one of subsections 54(3), (5), (7), (9) or (12) or subsections 55(3), (5) or (8) of the Family Assistance Act, must notify the Secretary if anything happens that causes a reduction in the weekly limit of hours or the claimant becomes aware that anything is likely to happen that will have that effect as soon as practicable after becoming aware. The claimant in notifying the Secretary must do so in the manner set out in the written notice given to the claimant under new section 57. There is a penalty for failing to comply with these obligations.

New subsection 56D(2) provides that a claimant (being an approved child care service), who is eligible under section 47 of the Family Assistance Act for child care benefit by fee reduction for a child at risk and a rate determination made by the Secretary under subsection 81(4) of the Family Assistance Act is in force, must notify the Secretary if anything happens that has the effect that the rate should not apply or the claimant becomes aware that anything is likely to happen that will have that effect as soon as practicable after becoming aware. The claimant in notifying the Secretary must do so in the manner set out in the written notice given to the claimant under new section 57. There is a penalty for failing to comply with these obligations.

New subsection 56D(3) provides that where an individual makes a claim for child care benefit by fee reduction for care provided by an approved child care service and a determination of conditional eligibility made under new section 50F is in force where the rate applicable is determined under subsection 81(3) of the Family Assistance Act, then the approved child care service must notify the Secretary if anything happens that has the effect that the rate should no longer apply or if the service becomes aware that anything is likely to happen that will have that effect as soon as practicable after becoming aware. The service has this responsibility because it is the service that claims the higher rate under subsection 81(3). The service in notifying the Secretary must do so in the manner set out in the written notice given to the claimant under new section 57. There is a penalty for failing to comply with these obligations.

New subsection 56D(4) provides that where an individual makes a claim for child care benefit by fee reduction for care provided by an approved child care service and determinations of conditional eligibility made under new section 50F and a weekly limit of hours under new section 50H are in force and the weekly limit of hours is set by application of subsection 54(12) or 55(8) of the Family Assistance Act (because of a child at risk), then the approved child care service must notify the Secretary if anything happens that has the effect that the weekly limit of hours should not be as high or if the service becomes aware that anything is likely to happen that will have that effect as soon as practicable after becoming aware. The service has this responsibility because it is the service that put in the application for the limit of hours under subsection 54(12) or 55(8). The service in notifying the Secretary must do so in the manner set out in the written notice given to the claimant under new section 57. There is a penalty for failing to comply with these obligations.

New subsection 56D(5) provides that if a determination under subsection 57 of the Family Assistance Act is in force in respect of an approved child care service being a sole provider of a child care service in an area, the service must notify the Secretary if anything happens that has the effect that it would no longer be the sole provider or if the service becomes aware that anything is likely to happen that will have that effect as soon, as practicable after becoming aware. The service in notifying the Secretary must do so in the manner set out in the written notice given under new section 57. There is a penalty for failing to comply with these obligations.

New Subdivision L - Secretary's powers

New Section 57 - Secretary's power to approve a manner of notification for the purposes of sections 56C and 56D

New section 57 provides that the manner of notification to be used by a person when notifying of a thing under new section 56C or new section 56D (change of circumstances) is approved by the Secretary (new subsection 57(1)). The Secretary is required to notify a person of the approved manner of notification by way of a written notice (new subsection 57(2)).

New Section 57A - Secretary's power to require bank account details

Under new section 57A, the Secretary may require a claimant (being an individual) who is conditionally eligible for CCB by fee reduction under a determination made under new section 50F to provide details of a bank account maintained by the claimant alone, or jointly in common with someone else, into which the amount of the difference referred to in new subsection 56(1) is to be paid. The claimant must provide the details of the bank account within 28 days of the Secretary making the requirement.

New Section 57B - Secretary's powers to request tax file number etc of TFN claim persons

Under new section 57B the Secretary may request, in a claim form relating to CCB by fee reduction, that a statement of one of the kinds set out in new subsections 57B(2),(3) or (4) is made in relation to each TFN claim person. For the purposes of a claim for CCB by fee reduction, `TFN claim person' is defined in subsection 3(1) of the Family Assistance Admin Act as the claimant and the claimant's partner.

New subsection 57B(2) provides that the first kind of statement that may be made under a request made by the Secretary under new subsection 57B(1) is a statement of the TFN claim person's tax file number. This statement, irrespective of who the TFN determination person is, can only be made by the claimant.

New subsection 57B(3) provides that the second kind of statement that may be made under a request made by the Secretary under new subsection 57B(1) is a statement by the TFN claim person that the person has a tax file number but does not know what the number is and that the person has asked the Commissioner for Taxation to inform the person of the tax file number and the Commissioner of Taxation is authorised by the person to tell the Secretary whether the person has a tax file number and what that number is.

New subsection 57B(4) provides that the third kind of statement that may be provided under a request made by the Secretary under new subsection 57B(1) is a statement by the TFN claim person that the person has an application for a tax file number pending and the Commissioner of Taxation is authorised by the person to tell the Secretary if a tax file number is issued what that number is, or if the application is refused that it has been refused or if the application is withdrawn that it has been withdrawn.

New subsection 57B(5) provides that a statement that the claimant makes must be made in the claim. A statement made by the claimant's partner must be in a document, in the form approved by the Secretary, given by the claimant together with the claim.

New subsection 57B(6) allows the Secretary to make an exemption from the requirement that a TFN claim person must make a statement relating to the person's TFN, if the TFN claim person is the claimant's partner and the claimant cannot obtain from the partner the partner's TFN or other TFN statement.

New subsection 57B(7) provides that the requirement that each TFN claim person must makes a statement relating to the person's TFN does not apply if the claimant, opted in the claim to have the CCB % applicable to the claimant calculated using the minimum taxable income & as the taxable income %, with the effect that the CCB % is set at the minimum level.

New Section 57C - Secretary's power to request tax file numbers etc. of certain TFN claim persons

The Secretary may request an individual who claims payment of child care benefit by fee reduction for care provided by an approved child care service to provide the tax file number of a TFN claim person. For the purposes of a claim for CCB by fee reduction, `TFN claim person' is defined in subsection 3(1) of the Family Assistance Admin Act as the claimant and the claimant's partner. The tax file number is to be provided within 28 days of the making of the request. The request may only be made if the claimant does not opt to have the applicable CCB % calculated under Schedule 2 to the Family Assistance Act using the minimum taxable income % as the taxable income %, and the tax file number of a TFN claim person is not given to the Secretary in the claim, and no statement under new subsection 57B(3) or (4) is made by the TFN claim person, and the Secretary did not exempt, under new section 57B(6), the partner of the claimant from the requirement to provide a tax file number or make a statement under new subsection 57B(3) or (4).

New Section 57D - Secretary's power to request tax file numbers of TFN determination persons

If a claimant (being an individual) is either conditionally eligible for child care benefit by fee reduction under a determination in force under new section 50F or entitled to be paid child care benefit for a past period of care provided by an approved care child service under a determination in force under new section 52E, the Secretary may request the claimant, under new subsection 57D(1), to give a statement in relation to a specified TFN determination person. For CCB purposes, `TFN determination person' is defined in subsection 3(1) of the Family Assistance Admin Act as the claimant and the claimant's partner (if a claim is for CCB for a past period, the definition includes any partner of the claimant during the past period). The statement is to be given within 28 days of the Secretary's request and it is of a kind provided for under new subsections 57D(2), (3) or (4), as the claimant chooses.

New subsection 57D(2) provides that the first kind of statement that may be made by a claimant under a request made by the Secretary under new subsection 57D(1) is a statement of the TFN determination person's tax file number. This statement, irrespective of who the TFN determination person is, can only be made by the claimant.

New subsection 57D(3) provides that the second kind of statement that may be made under a request made by the Secretary under new subsection 57D(1) is a statement by the TFN determination person that the person has a tax file number but does not know what the number is and that the person has asked the Commissioner for Taxation to inform the person of the tax file number and the Commissioner of Taxation is authorised by the person to tell the Secretary whether the person has a tax file number and what that number is.

New subsection 57D(4) provides that the third kind of statement that may be provided under a request made by the Secretary under new subsection 57D(1) is a statement by the TFN determination person that the person has an application for a tax file number pending and the Commissioner of Taxation is authorised by the person to tell the Secretary if a tax file number is issued what that number is, or if the application is refused that it has been refused or if the application is withdrawn that it has been withdrawn.

New Section 57E - Secretary's power to require immunisation details

The Secretary may, by written notice given to a claimant (being an individual) in respect of whom a determination of conditional eligibility in force under new section 50F, require that a child meets the immunisation requirement set out in section 6 of the Family Assistance Act. The claimant is required to satisfy the request within 63 days of the notice being given to the claimant.

New Section 57F - Secretary's power to require data verification information

The Secretary may , by written notice, request a claimant (being an individual) in respect of whom a determination of conditional eligibility in force under new section 50F, that the claimant provide, within the time specified in the notice, the information specified in the data verification form that accompanies the request.

New Subdivision M - Variations of determinations if failure to provide tax file numbers, bank account details or failure to meet the immunisation requirement

New Section 58 - Variation where failure to provide tax file number

New section 58 applies to a claimant who is a conditionally eligible individual and to a claimant in respect of whom a determination of entitlement is in force relating to a claim for CCB for a past period for care provided by an approved child care service.

New section 58 sets out the circumstances in which the TFN requirements in section 57D are not satisfied and the consequences of failing to satisfy those requirements within 28 days of being requested to do so. The TFN requirements are not satisfied if:

•

within 28 days of the request, the claimant gives the Secretary a statement by the TFN determination person that the person does not know his or her TFN and the Commissioner for Taxation tells the Secretary that the person does not have a TFN (new subsection 58(3) refers); or

•

within 28 days of the request, the claimant gives the Secretary a statement by the TFN determination person that the person has applied for a TFN and the Commissioner for Taxation tells the Secretary that the person has not applied for a TFN or that the application has been refused by the Commissioner or withdrawn by the person (subsection 58(4) refers).

If the TFN requirements are not satisfied then, the consequences are as follows:

•

under new subsection 58(5), where a CCB % determination is in force in relation to the claimant - the determination is varied with the effect that the claimant's CCB % is calculated using the minimum taxable income % as the taxable income % from the Monday after the day on which the variation is made; or

•

under new subsection 58(6), where a past period determination is in force in relation to the claimant - the determination of entitlement is varied so that the amount of the entitlement is recalculated using the CCB rate based on CCB % worked out using the minimum taxable income % as the taxable income %. The claimant is then entitled for that past period only to the amount as recalculated and not to the previously determined amount.

However, the Secretary has the discretion not to apply the consequences set out in subsection 58(5) or (6) if the TFN determination person is the claimant's partner and the claimant cannot obtain the partner's TFN or a relevant statement under subsection 57D(3) or (4). This rule is set out in new subsection 58(2).

The consequence in subsection 58(5) or (6) can be undone in certain circumstances. These are as follows:

If a CCB % has been varied under new subsection 58(5) and the Secretary finds out the TFN number of the relevant person before the end of the income year in which the variation took effect, then the effect of the variation is undone.

If a past period entitlement determination is varied under new subsection 58(6) and the Secretary finds out the TFN number of the relevant person at any time after the variation took effect, then the effect of the variation is undone.

These rules are contained in new subsection 58(8).

New Section 58A - Variation where failure to comply with request for bank account details

New section 58A applies where the Secretary required a conditionally eligible claimant to provide relevant bank account details (a request under new section 57A) and the claimant did not comply with the request within 28 days from the request.

As a consequence of the failure to comply with the request, new subsection 58A(3) allows the Secretary to vary the determination of conditional eligibility so that the claimant is not conditionally eligible from the Monday after the end of the 28-days period following the request. Under new subsection 58A(2), the Secretary may exempt the claimant from that consequence.

If a determination is varied under new subsection 58A(3) and the Secretary finds out the relevant bank account details before the end of the income year following the one in which the variation took effect, then the effect of the variation is undone.

New Section 58B - Variation where failure to comply with requirement to meet immunisation requirement

New section 58B applies where the Secretary required a conditionally eligible claimant that the child who is the subject of the determination meets the immunisation requirement (as defined in section 6 of the Family Assistance Act) (a request under new section 57F) and the claimant did not comply with the request within 63 days from the request.

As a consequence of the failure to comply with the request, the Secretary, under new section 58B, must vary the determination of conditional eligibility so that the claimant is not conditionally eligible from the Monday after the day the variation is made.

New Subdivision N - Variations of determinations if failure to provide data verification

Under new section 57F, the Secretary may require a conditionally eligible claimant to provide data verification information in the form attached to the request. New Subdivision N deals with variations relating to the data verification form. New sections 59, 59A, 59B, 59C, 59D and 59F provide for variation of determinations of conditional eligibility, schooling %, CCB % and weekly limit of hours as a result of failure to provide data verification information. New section 59E provides for variation resulting from the provision of the required information.

New Section 59 - Variation for failure to return the data verification form

If the data verification form is not returned within the time specified in the data verification request, the Secretary may vary the determination of conditional eligibility with the effect that the claimant is not conditionally eligible from 1 July in the income year following the year in which the request was made.

New Section 59A - Variation for failure to provide information in the data verification form relating to the name and address of the approved child care service

If the data verification form is returned within the time specified in the data verification request but the information requested in the form relating to the name and address of the approved child care service is not provided, the Secretary may vary the determination of conditional eligibility with the effect that the claimant is not conditionally eligible from 1 July in the income year following the year in which the request was made.

New Section 59B - Variation for failure to provide information in the data verification form relating to conditional eligibility

If the data verification form is returned within the time specified in the data verification request but the information requested in the form relating to conditional eligibility is not provided, the Secretary may vary the determination of conditional eligibility with the effect that the claimant is not conditionally eligible from 1 July in the income year following the year in which the request was made.

New Section 59C - Variation for failure to provide information in the data verification form relating to schooling %

If the data verification form is returned within the time specified in the data verification request but the information requested in the form relating to schooling % is not provided, and the claimant's schooling % is determined to be 100%, the Secretary may vary the determination of schooling % with the effect that the schooling % is 85% from 1 July in the income year following the year in which the request was made.

The Secretary must undo the effect of the variation if, before the end of the income year following the one in which the variation took effect, the claimant gives the Secretary the relevant information or the Secretary finds out the relevant information.

New Section 59D - Variation for failure to provide information in the data verification form relating to CCB%

If the data verification form is returned within the time specified in the data verification request but the information requested in the form relating to CCB % is not provided, or the claimant provides an estimate of the claimant's adjusted taxable income relating to the subsequent income year which the Secretary does not consider reasonable, the Secretary may vary the determination of CCB % with the effect that the CCB % is recalculated using the minimum taxable income % as the taxable income % from 1 July in the income year following the year in which the request was made.

The Secretary must undo the effect of the variation if, before the end of the income year following the one in which the variation took effect, the claimant gives the Secretary the relevant information or the claimant gives the Secretary an estimate of the claimant's adjusted taxable income that the Secretary considers reasonable, or the Secretary finds out the actual amount of the claimant's adjusted taxable income.

New Section 59E - Variation where information in the data verification form affects CCB%

If the data verification form is returned within the time specified in the data verification request and the information relating to CCB % provided by the claimant affects the claimant's CCB %, the Secretary must vary the determination of CCB % with the effect that the CCB % is recalculated using the information provided, from 1 July in the income year following the year in which the request was made.

New Section 59F - Variation for failure to provide information in the data verification form relating to weekly limit of hours

If the data verification form is returned within the time specified in the data verification request but the information requested in the form relating to a weekly limit of hours is not provided, the Secretary may vary the determination of a weekly limit of hours with the effect that the limit is 20 hours from 1 July in the income year following the year in which the request was made.

The Secretary must undo the effect of the variation if, before the end of the income year following the one in which the variation took effect, the claimant gives the Secretary the relevant information or the Secretary finds out the relevant information.

New Subdivision P - Other variations of determinations relating to CCB%

New Subdivision P deals with variations of CCB% that do not result from requests made by the Secretary (variations resulting from the Secretary's requests are dealt with in new Subdivisions M, N and R).

New Section 60 - Variation where entitlement determination for child care benefit for a past period uses minimum taxable income % as the taxable income % and claimant gives certain information so that entitlement is recalculated

Under new section 55B, if a claimant for CCB for a past period for care provided by an approved child care service does not provide in the claim the information needed to work out the number of children in care of a particular kind, or the claimant opts for the minimum level of CCB%, the claimant's entitlement amount is calculated on the basis of CCB% worked out using the minimum taxable income % as the taxable income % (so that CCB is paid at the minimum level).

If, subsequently, the claimant provides the information needed to work out the number of children in care of a particular kind, or informs the Secretary that he or she wants the CCB % to be calculated using the claimants adjusted taxable income amount and provides the relevant TFNs (as the case requires), the Secretary must vary the entitlement determination to recalculate the entitlement amount using the claimant's adjusted taxable income. The claimant is then entitled to be paid the difference (if any) between the amount previously determined and the amount as varied.

New Section 60A - Variation where entitlement determination for child care benefit by single payment/in substitution uses minimum taxable income % as the taxable income % and claimant gives certain information so that entitlement is recalculated

Under new section 55B and new subsection 55A(2), if in respect of a claim for CCB by single payment/in substitution for care provided by an approved child care service the information needed to work out the number of children in care of a particular kind or the information relating to an estimate of an adjusted taxable income is not available, or the claimant opts for the minimum level of CCB%, the claimant's entitlement amount is calculated on the basis of CCB% worked out using the minimum taxable income % as the taxable income % (so that CCB is paid at the minimum level).

If, subsequently, the claimant provides the information needed to work out the number of children in care of a particular kind, or provides the relevant estimate of an adjusted taxable income needed to calculate the amount of the benefit, or informs the Secretary that he or she wants the CCB % to be calculated using the relevant adjusted taxable income amount and provides the relevant TFNs (as the case requires), the Secretary must vary the entitlement determination to recalculate the entitlement amount using the relevant adjusted taxable income. The claimant is then entitled to be paid the difference (if any) between the amount previously determined and the amount as varied.

New Section 60B - Variation where minimum taxable income % used under section 55, 55B or 55C as the taxable income % and claimant gives certain information so that CCB % is recalculated

Under new subsection 55(2), if a claimant who is conditionally eligible does not give the Secretary an estimate of the claimant' adjusted taxable income, the claimant's CCB% is determined using the minimum taxable income % as the taxable income % (it is set at the minimum level). If the claimant subsequently gives the Secretary the estimate that the Secretary considers reasonable, new section 60B requires the Secretary to vary the CCB % using that estimate with the effect from the Monday after the day the variation is made.

Under new paragraphs 55B(c)(i) and (ii), if a claimant who is conditionally eligible does not provide in the claim the information needed to work out the number of children in care of a particular kind, or the claimant opts in the claim for the minimum level of CCB%, the claimant's CCB % is calculated using the minimum taxable income % as the taxable income %. If, subsequently, the claimant provides the information needed to work out the number of children in care of a particular kind, or (as the case requires) informs the Secretary that he or she wants the CCB % to be calculated using an estimate of the claimant's adjusted taxable income amount and provides the relevant TFNs and provides the amount of the estimate that the Secretary considers reasonable, new section 60B requires the Secretary to vary the CCB % with the effect that the CCB % is recalculated under Schedule 2 of the Family Assistance Act from the Monday after the day the variation is made.

Under new section 55C, in situation where the TFN claim persons do not have TFNs or when the claimant fails to comply with the TFN requirements under new section 57C, the CCB % of a conditionally eligible claimant is set at the minimum level. If, subsequently, the claimant gives the Secretary the TFN of each TFN determination person, new section 60B requires the Secretary to vary the CCB % with the effect that the CCB % is recalculated under Schedule 2 of the Family Assistance Act from the Monday after the day the variation is made.

If the Secretary makes a variation under new subsection 60B(1) (basically, with effect prospectively), the variation will also affect a determination under new section 51B of the amount of the claimant's entitlement to be paid CCB in respect of particular income years. The income years affected are the one in which the variation took effect, and the one before that income year. The effect of the variation is that the amount of the claimant's entitlement is to be calculated, or recalculated (as the case may be), using the CCB % worked out under Schedule 2 (ie, the usual level of CCB % for the claimant's income and not the minimum level originally determined). Thus, the variation to the claimant's CCB % will have retrospective effect through its application to the claimant's determination of entitlement.

New Section 60C - Variation where CCB % calculated under Schedule 2 to the Family Assistance Act and Secretary receives information from Commissioner of Taxation

If CCB % of a conditionally eligible claimant is calculated under Schedule 2 of the Family Assistance Act in the situation referred to in paragraph 50D(1)(e) (where the Commissioner of Taxation did not provide any information concerning the claimant's and partner's TFN) and later the Commissioner of Taxation tells the Secretary that the claimant or the claimant's partner has not applied for a TFN, or the application has been refused or withdrawn, new section 60C requires the Secretary to vary the determination of CCB % with the effect that the CCB % is calculated using the minimum taxable income % as the taxable income % from the Monday after the day the variation is made.

The Secretary must undo the variation if, before the end of the income year following the one in which the variation took effect, the Secretary finds out the TFN of the claimant and/or the claimant's partner (as the case requires).

New Section 60D - Variation where income tax return not lodged

New section 60D deals with the situation where an entitlement determination under new section 51B is in force in respect of a conditionally eligible claimant, with the effect that the claimant is entitled to CCB by fee reduction for a particular income year, the claimant or the claimant's partner or both are required to lodged a tax return for that particular income year but have not done so and an income tax assessment has not been made in relation to each relevant person. If this happens, new subsection 60D(1) provides the entitlement determination must be varied with the effect that the entitlement amount for the particular income year is recalculated using the minimum taxable income % as the taxable income % (with the effect that the CCB% and therefore the rate of CCB is set at the minimum level). As the claimant is only entitled to be paid for the particular income year the recalculated amount, it means that the amount of CCB already paid for the particular income year would be a debt, recoverable under Part 4 of the Family Assistance Admin Act.

This provision supports the end of year income reconciliation process. Although CCB by fee reduction can be paid on the basis of an estimate, the rate of CCB is ultimately based on a person's actual income in a relevant income year. This amount cannot be known until a return is lodged and an assessment made. It is only then that a person's "real" entitlement can be determined.

If the Commissioner of Taxation subsequently makes an assessment in relation to each relevant person, then, under new subsection 60D(3), the determination of entitlement for the particular income year must again be varied, using the claimant' adjusted taxable income as assessed, with the effect that the claimant is entitled to be paid the amount recalculated under the new variation and not the amount calculated under the previous variation.

New Section 60E - Variation where estimate of an amount given other than in response to a request by the Secretary is not reasonable

If CCB% of a conditionally eligible claimant is calculated on the basis of an estimate of the claimant's adjusted taxable income for a particular income year and, during that year, the claimant gives the Secretary a revised estimate that the Secretary does not consider reasonable, then under new section 60E the Secretary must vary the claimant's CCB % so that it is calculated using the minimum taxable income % as the taxable income % from the Monday after the day the variation is made.

The variation will be undone if, before the end of the income year following the one in which the variation took effect, the claimant provides a revised estimate that the Secretary considers reasonable as a result of which a variation under new section 65B is made, or the Secretary finds out the actual amount needed to calculate the CCB%.

New Subdivision Q - Variation of determinations relating to conditional eligibility and schooling %

New Section 61 - Variation where schooling % is 85 % under section 55D and information about whether the child is a school child provided

Where information whether the child who is the subject of a claim for CCB by fee reduction is a school child is not provided at claim, the schooling % applicable to the claimant and the child is determined under new section 55D to be 85%.

If the claimant later provides the information that the child is not a school child, new section 61 requires the Secretary to vary the determination of schooling % again with the effect that the schooling % is 100 % from the Monday after the day on which the variation is made.

New Section 61A - Variation where failure to notify that the service has ceased to provide care to child

New section 61A enables the Secretary to vary a conditional eligibility determination, that is in force with the effect that the claimant is conditionally eligible, where there is reason to believe that the approved child care service the claimant indicated as providing care to the child has ceased to provide the care.

Where this happens, the Secretary may vary the determination under new subsection 61A(1) with the effect that the claimant is not conditionally eligible from the Monday after the day the variation is made.

If, before the end of the income year following the year in which the determination took effect, the Secretary finds out that the service provides care to the child, then the Secretary must vary the determination to undo the effect of the previous variation (new subsection 61A(2) refers).

New Subdivision R - Variations of determinations because of failure to meet requirements arising under Division 1 of Part 6

New Subdivision R provides for variation of a determination of conditional eligibility, a weekly limit of hours, CCB% and schooling % when the Secretary, in order to make a decision about the claimant's conditional eligibility or a weekly limit of hours or CCB % or schooling % at any time, requires the claimant or claimant's partner, underDivision 1 of Part 6 of the Family Assistance Admin Act, to give information or provide a document, and the requirement is not complied with.

New Section 62 - Variation where failure to provide information relevant to conditional eligibility

New section 62 provides that if the Secretary's requirement is relevant to the issue of the claimant's conditional eligibility and the claimant or the claimant's partner fails to comply with the requirement, the determination of conditional eligibility may be varied with the effect that the claimant is not conditionally eligible from the Monday after the day the variation is made.

Under new subsection 62(2), if the claimant subsequently gives the information or produces the documents by the end of the income year following the one in which the variation took effect, the Secretary must undo the variation determination under new subsection 62(1).

New Section 62A - Variation where failure to provide information relevant to CCB %

New section 62A provides that if the Secretary's requirement is relevant to the issue of the claimant's CCB % and the claimant or the claimant's partner fails to comply with the requirement, the determination of CCB % may be varied with the effect that the CCB % is calculated using the minimum taxable income % as the taxable income % from the Monday after the day the variation is made (the variation will result in the CCB % being set at the minimum level).

Under new subsection 62A(3), if the claimant subsequently gives the information or produces the documents by the end of the income year following the one in which the variation took effect, the Secretary must undo the variation determination under new subsection 62A(1).

New Section 62B - Variation where failure to provide information relevant to schooling %

New section 62B provides that if the Secretary's requirement is relevant to the issue of the claimant's schooling % and the schooling % of the claimant is 100 % and the claimant or the claimant's partner fails to comply with the requirement, the determination of schooling % may be varied with the effect that the schooling % is 85 % from the Monday after the day the variation is made.

Under new subsection 62B(3), if the claimant subsequently gives the information or produces the documents by the end of the income year following the one in which the variation took effect, the Secretary must undo the variation determination under new subsection 62B(1).

New Section 62C - Variation where failure to provide information relevant to a weekly limit of hours

New section 62C provides that if the Secretary's requirement is relevant to the issue of the claimant's weekly limit of hours and the claimant or the claimant's partner fails to comply with the requirement, the determination of a weekly limit of hours may be varied with the effect that the limit is reduced to a limit specified by the Secretary from the Monday after the day the variation is made.

Under new subsection 62C(3), if the claimant subsequently gives the information or produces the documents by the end of the income year following the one in which the variation took effect, the Secretary must undo the variation determination under new subsection 62C(1).

New Subdivision S - Further variations after certain variations that can be undone

New Section 62D - Secretary finds out information after undoing period is over

If a variation affecting the determination of CCB % or a weekly limit of hours or schooling % is made, the effect of which may be undone within a specified period, and the period passes within the effect of the variation being undone, and the Secretary finds out the information the lack of which caused the variation, new section 62 D requires the Secretary to vary again the affected determination, using the information provided, with the effect from the Monday after the day the variation is made.

New Subdivision T - Notice requirement for variations

New Section 63 - Notice of variation of determination

Under new section 63, the Secretary must notify the claimant of any variation determination that is made under new Subdivision M, N, P, Q, R or S stating the effect of the variation, and inform the claimant of his or her review rights.

A service providing care to the child the subject of a determination, must be given notice of a variation concerning conditional eligibility, CCB %, a weekly limit of hours or schooling %.

A variation determination is not ineffective if the notice does not comply with these requirements.

New Subdivision U - Variations of determinations of weekly limit of hours because of a circumstance in section 54, 55 or 56 of the Family Assistance Act

New Subdivision U deals with variations of weekly limit of hours determinations that are made if circumstances specified in sections 54, 55 and 56 of the Family Assistance Act arise. As provided for in this Subdivision, the variations are made by the Secretary, on application by an individual or a service, or they are taken to have been made where an approved child care service gives certificates as mentioned in this Subdivision.

New Section 64 - Determination of weekly limit of hours may be varied

New section 64 provides that where a determination of a weekly limit of hours has been made in respect of an individual and a child, or a determination of a weekly limit of hours has been taken to have been made in respect of a service and a child, those determinations made be varied so that a different limit applies in a week.

Under new subsection 64(2), the variations provided for in this Subdivision depend on whether a circumstance listed in new section 54, 55 or 56 of the Family Assistance Act (which specify the circumstances and the limits applying in those circumstances) applies in a week in respect of a claimant.

New Section 64A - Varying a determination so that a limit of 50 hours in a week applies

New section 64A provides that where a determination of a weekly limit of hours has been made in respect of an individual and a child, or a determination of a weekly limit of hours has been taken to have been made in respect of a service and a child, the Secretary may vary the determination, or the determination may be taken to have been varied, so that a limit of 50 hours in a week applies.

The Secretary may make the variation on application if a circumstance specified section 54 of the Family Assistance Act (other than subsection 54(10) of that Act that relates to a child at risk) applies in the week and neither a limit of more than 50 hours nor a 24 hour care limit applies in the week.

New subsection 64A(3) specifies who may apply for a variation under this new section (depending on the circumstance, it may be an individual or an approved child care service).

New subsection 64A(4) provides that if an approved child care service gives a certificate under subsection 54(10) of the Family Assistance Act (child at risk) in respect of a week, the determination of the weekly limit of hours is taken to have been varied so that a limit of 50 hours in the week applies.

New subsection 64A(5) provides that if a variation under new subsection (2) takes place and the variation would have effect for any period for which a variation under new section 59F or 62C has effect, the variation under new section 59F or 62C prevails. This provision ensures that the variation power in new section 64A cannot override the effect of those other variations. This prevalence rule does not apply if the variation under new subsection 64A(2) is made because of a circumstance listed in subsection 54(12) of the Family Assistance Act (child at risk).

New Section 64B - Varying a determination so that a limit of more than 50 hours in a week applies

New section 64B provides that where a determination of a weekly limit of hours has been made in respect of an individual and a child, or a determination of a weekly limit of hours has been taken to have been made in respect of a service and a child, the Secretary may vary the determination, or the determination may be taken to have been varied, so that a limit of more than 50 hours in a week applies.

The Secretary may make the variation on application if a circumstance specified section 55 of the Family Assistance Act (other than subsection 55(6) of that Act that relates to a child at risk) applies in the week and a 24 hour care limit does not apply in the week.

As provided by new subsection 64B(3), the actual limit of more than 50 hours that applies in the week is the limit worked out by the Secretary using the relevant provisions of section 55 (other than subsection 55(6) - child at risk) of the Family Assistance Act.

New subsection 64B(4) specifies who may apply for a variation under this new section (depending on the circumstance, it may be an individual or an approved child care service).

New subsection 64B(5) provides that if an approved child care service gives a certificate under subsection 55(6) of the Family Assistance Act (child at risk) in respect of a week, the determination of the weekly limit of hours is taken to have been varied so that a limit of the particular number of hours, that is more than 50, worked out by the service using subsection 55(6) of that Act applies in the week.

New subsection 64B(6) provides that if a variation under new subsection (2) takes place and the variation would have effect for any period for which a variation under new section 59F or 62C has effect, the variation under new section 59F or 62C prevails. This provision ensures that the variation power in new section 64B cannot override the effect of those other variations. This prevalence rule does not apply if the variation under new subsection 64B(2) is made because of a circumstance listed in subsection 55(8) of the Family Assistance Act (child at risk).

New Section 64C - Varying a determination so that a 24 hour care limit in a week applies

New section 64C provides that where a determination of a weekly limit of hours has been made in respect of an individual and a child, or a determination of a weekly limit of hours has been taken to have been made in respect of a service and a child, the Secretary may vary the determination, or the determination may be taken to have been varied, so that a 24 hour care limit in a week applies.

The Secretary may make the variation on application if circumstances specified subsection 56(6) or (8) of the Family Assistance Act apply in the week.

New subsection 64C(3) specifies that an application for this variation may be made only by the claimant.

New subsection 64C(4) provides that if an approved child care service gives a certificate under subsection 56(3) or (4) of the Family Assistance Act in respect of a week, the determination of the weekly limit of hours is taken to have been varied so that a 24 hour care limit applies in the week.

New subsection 64C(5) provides that if a variation under this new section takes place and the variation would have effect for any period for which a variation under new section 59F or 62C has effect, the variation under new section 59F or 62C prevails. This provision ensures that the variation power in new section 64C cannot override the effect of those other variations.

New Section 64D - Varying a determination so that a limit of 20 hours in a week applies

New section 64D provides that where a determination of a weekly limit of hours has been made in respect of an individual and a child, or a determination of a weekly limit of hours has been taken to have been made in respect of a service and a child, the Secretary may vary the determination so that a 20 hour care limit in a week applies.

The Secretary may make the variation if a limit of 50 hours, more than 50 hours or a 24 hour care limit does not apply in the week.

New Section 64E - Notice of variation of determination under this Subdivision

New section 64E specifies notification requirements relating to variations made under this new Subdivision.

A variation determination is not ineffective if the notice does not comply with these requirements.

New Section 64F - Form of application

New section 64F specifies the requirements relating to the application for a variation under this new Subdivision.

New Subdivision V - Variations of determinations for changes in circumstances

New Subdivision V (new sections 65, 65A, 65B, 65C and 65D) enables the Secretary to vary all ongoing determinations, that is, a conditional eligibility, CCB %, schooling % or a weekly limit of hours determination at any time after its making to take account of changes in the claimant's circumstances that impact on conditional eligibility, the CCB%, schooling % or the limit of hours.

A determination can be varied so that it has effect at all times after the change in circumstances. The effect of the variation determination can be prospective or retrospective.

The new sections are required because the review provisions in Part 5 of the Family Assistance Admin Act only allow for the review of a decision with the effect from the date of that decision. For example, a CCB % determination is in force on day 1 and a change in circumstances subsequently occurs on day 20 which affects the claimant's CCB % and the Secretary is notified of the change on day 25. The effect of the change is that the claimant CCB % should be increased from day 20. The only decision that can be reviewed under Part 5 is the original CCB % determination. This is not appropriate in the given scenario. What is needed is a power to vary the determination from day 20. New section 65A allows this type of variation to be made.

A variation under new Subdivision V is a "decision" that can be reviewed under Part 5 of the Family Assistance Admin Act.

By contrast, if the original determination was incorrect, the Secretary would have the power under the review provisions in Part 5 to set aside the incorrect original decision and substitute a new decision with the effect from day 1. Similarly, the claimant could seek review of the original determination.

New Section 65 - Variation of determination of conditional eligibility to reflect changes in conditional eligibility

New section 65 provides for variation of a conditional eligibility determination so it has the effect that the claimant is not conditionally eligible for CCB by fee reduction from the day of the occurrence of the event that affected the claimant's conditional eligibility.

New subsection 65(2) provides that, if the expiration of a period of time is relevant to conditional eligibility, the occurrence includes the expiration.

New Section 65A - Variation of determination of CCB % to reflect changes in CCB %

New section 65A provides for variation of a CCB % determination so it has the effect that the claimant's CCB % is varied from the date of the occurrence of the event that affected the CCB %.

New subsection 65A(2) provides that, if the expiration of a period of time is relevant to CCB %, the occurrence includes the expiration.

New subsection 65A(3) specifies that the occurrence to which this new section applies does not include the occurrence of the event that causes the claimant to provide to the Secretary a revised estimate of the claimant's adjusted taxable income, unless that event affects the claimant's CCB % not only for the reason that it changes the claimant's adjusted taxable income or the event is that the claimant becomes to be a member of a couple, or ceases to be a member of a couple.

New subsection 65A(4) limits the effect of a beneficial variation determination in certain circumstances. If:

•

the Secretary does not become aware of the occurrence of the event and the claimant does not notify the Secretary of the event until after the end of the income year following the one in which the event occurred; and

•

the Secretary would be required under new subsection 65A(1) to increase the claimant's CCB % as a result of the event,

then the Secretary is required to increase the claimant's CCB % from the beginning of the income year that precedes the year in which the Secretary becomes aware of the occurrence of the event.

New subsection 65A(5) provides that if a variation under this new section takes place and the variation would have effect for any period for which a variation under new section 58, 59D, 60C, 60D, 60E or 62A has effect, the variation under new section 58, 59D, 60C, 60D, 60E or 62A prevails. This provision ensures that the variation power in new section 65A cannot override the effect of those other variations.

New Section 65B - Variation of determination of CCB % to reflect revised adjusted taxable income estimates

New section 65B provides for variation of a CCB % determined on the basis of an estimate of the claimant's adjusted taxable income for a particular income year, or a CCB % initially so determined that has been subsequently varied under new section 60E because a revised estimate provided by the claimant was not reasonable, so it is recalculated on the basis of a revised reasonable estimate of the adjusted taxable income.

This variation applies where the claimant provides during that particular income year a new revised estimate of an adjusted taxable income that is not caused by the event the occurrence of which would result in a variation under new section 65A, and the CCB % calculated using the revised estimate would be different than the % previously determined.

New subsection 65B(2) specifies the date of effect of this variation. If the estimate relates to the particular income year, the CCB % is varied from the Monday after the day the variation is made. If the estimate relates to a new income year, the CCB % is varied from 1 July of that income year.

New subsection 65B(3) provides that if a variation under this new section takes place and the variation would have effect for any period for which a variation under new section 58, 59D, 60C, 60D, 60E or 62A has effect, the variation under new section 58, 59D, 60C, 60D, 60E or 62A prevails. This provision ensures that the variation power in new section 65B cannot override the effect of those other variations.

New Section 65C - variation of determination of schooling % to reflect changes in schooling %

New section 65C provides for variation of a schooling % determination so it has the effect that the claimant's schooling % is varied from the date of the occurrence of the event that affected the schooling %.

New subsection 65C(2) limits the effect of a beneficial variation determination in certain circumstances. If:

•

the Secretary does not become aware of the occurrence of the event and the claimant does not notify the Secretary of the event until after the end of the income year following the one in which the event occurred; and

•

the Secretary would be required under new subsection 65C(1) to increase the claimant's schooling % as a result of the event,

then the Secretary is required to increase the claimant's schooling % from the beginning of the income year that precedes the year in which the Secretary becomes aware of the occurrence of the event.

New subsection 65C(3) provides that if a variation under this new section takes place and the variation would have effect for any period for which a variation under new section 62B or 59C has effect, the variation under new section 62B or 59C prevails. This provision ensures that the variation power in new section 65C cannot override the effect of those other variations.

New Section 65D - Variation of determination of weekly limit of hours to reflect changes in weekly limit of hours

New section 65D provides for variation of a weekly limit of hours determination so it has the effect that the claimant's weekly limit of hours is varied from the date of the occurrence of the event that affected the limit.

New subsection 65D(2) provides that, if the expiration of a period of time is relevant to the weekly limit of hours, the occurrence includes the expiration.

New subsection 65D(3) limits the effect of a beneficial variation determination in certain circumstances. If:

•

the Secretary does not become aware of the occurrence of the event and the claimant does not notify the Secretary of the event until after the end of the income year following the one in which the event occurred; and

•

the Secretary would be required under new subsection 65D(1) to increase the claimant's schooling % as a result of the event,

then the Secretary is required to increase the claimant's weekly limit of hours from the beginning of the income year that precedes the year in which the Secretary becomes aware of the occurrence of the event.

New subsection 65D(4) provides that if a variation under this new section takes place and the variation would have effect for any period for which a variation under new section 62C or 59F has effect, the variation under new section 62C or 59F prevails. This provision ensures that the variation power in new section 65D cannot override the effect of those other variations.

New Section 65E - Notice of variation under this Subdivision

Under new section 65E, the Secretary must notify the claimant and the approved child care service concerned of any variation determination that is made under this new Subdivision. The notice must state the effect of the variation and inform the claimant of his or her review rights.

A variation determination is not ineffective if the notice does not comply with these requirements.

Item 61 inserts new Part 8A after Part 8 of the Family Assistance Admin Act dealing with obligations of approved child care services (in new Division 1) and with payment of advances to approved child care services (in new Division 2).

New Part 8A - Obligations of, and advances to, approved child care services

NEW DIVISION 1 - OBLIGATIONS OF APPROVED CHILD CARE SERVICES

New Division 1 sets out obligations of an approved child care service that the service has as a child care service provider (obligations of an approved child care service arising out of its eligibility for CCB are dealt with in new Subdivision K of Division 4 Part 3 of the Family Assistance Admin Act). Compliance with obligations imposed under the family assistance law is a condition for the continuing approval of an approved child care service (subsection 196(2) of the Family Assistance Admin Act refers). If the Secretary becomes satisfied that a service fails to meet this condition, the Secretary may consider imposing one or more of the sanctions under section 200 of that Act. There are also penalties for failing to comply with the obligations specified in this new Division.

New Section 219A - Obligation to act on notices received or certificates given

New section 219A imposes obligations on a service which provides care to the child of a person determined to be conditionally eligible for child care benefit by fee reduction.

Under the family assistance law, there is a range of notices that the Secretary may give to a service, as well as a number of matters that a service may certify, in connection with a person's eligibility for assistance, a child's circumstances, the provision of care to the child and the entitlements that accrue in respect of that care. These notices and certificates all establish matters that have consequences for the fees the service may charge, so that when a service receives such a notice, or certifies such a matter, it must carry out certain actions to ensure that the fees it charges are calculated correctly and consistently with the matter that has been notified or certified.

The Secretary's notices given to a service are the notices of determinations, or variation of determinations, that relate to an individual's conditional eligibility for CCB by fee reduction, CCB%, schooling %, a weekly limit of hours and a special rate (child at risk and hardship cases). A service may give certificates relating to CCB rate during an initial period in child at risk and hardship cases and certificates relating to a weekly limit of hours in child at risk cases. The table in new section 219A lists these notices and certificates and, in each case, details what a service must do.

As it is evident from the provisions in the table, the main responsibilities of a service in relation to an individual in respect of whom a notice of conditional eligibility has been given in relation to a child, is to calculate the rate and amount of fee reductions using the relevant provisions of the Family Assistance Act and having regard to both the Secretary's determinations (and variations of those determinations) and the certificates the services gives, reduce the child care fees the individual has to pay for the child by the amount of the fee reductions and charge only the reduced fees.

The service to which the notice is given, or which certifies the matter has to act on the notice, or certificate, as soon as practicable and in the manner specified in the table.

New Section 219B - Obligation to reduce fees of individuals when approved child care service is eligible for child care benefit

New section 219B provides that where a service is eligible for child care benefit by fee reduction for sessions of care provided to a child at risk, the service must calculate the appropriate amount of child care benefit and reduce the fees charged by that amount (new subsection 219B(1) refers).

New subsection 219B(2) specifies pre-determined information (the rate as certified by the service and the weekly limit of hours that has been determined to be applicable) that the service must take into account in doing the calculation.

New subsection 219B(3) provides that it must be done as soon as practicable in the particular circumstances.

The penalty for non-compliance with the obligations under this new section is 60 penalty units.

New Section 219C - Obligation to pass on further fee reductions to individuals if notice of service's entitlement shows entitlement is greater than the fee reductions originally passed on

New section 219C provides that where a service is eligible for sessions of care provided to a child at risk, the child was in the care of an individual before the first session and, in respect of the child's care, the service is paid an amount of the difference between the entitlement amount and the amount already paid to the service via the payment of advances, the service must pass that amount of the difference on to the individual as soon as practicable.

The penalty for non-compliance with the obligations under this new section is 60 penalty units.

New Section 219D - Obligation if the service receives notice that the service's approval has been suspended or cancelled

New subsection 219D(1) provides that if a service receives notice that its approval has been suspended or cancelled, it must cease reducing fees for sessions of care on or after the day of receipt of the notice.

New subsection 219D(2) provides that if an approved child care service is notified that the suspension of its approval has been revoked, it must reduce the fees charged to a conditionally eligible individual for sessions of care provided after the day of receipt of the notice.

The penalty for non-compliance with the obligations under this new section is 60 penalty units.

New Section 219E - Obligation to provide receipts

New subsection 219E(1) provides that where a service has reduced an individual's fees as required by new sections 219A and 219B, it must give a receipt in respect of the payment of those fees. The subsection also specifies basic information that a receipt must contain.

The penalty for non-compliance with the obligations under this new section is 60 penalty units.

New subsection 219E(2) provides that the Secretary may make rules dealing with how receipts should be given, to whom, and any other information that must be provided.

New subsection 550(3) specifies that such rules are a disallowable instrument.

New Section 219F - Obligation to keep records

New subsection 219F(1) provides that a service must keep, in accordance with rules made under the new subsection 219F(3), records relating to specified aspects of its operation, and the eligibility of individuals for child care benefit.

New subsection 219F(2) provides that a service must keep records for 36 months from the end of the year to which they relate.

The penalty for non-compliance with the obligations under this new section is 60 penalty units.

New subsection 219F(3) provides that the Secretary must make rules specifying the kinds of records that must be kept in relation to the matters listed in subsection (1) and any other matters in respect of which records must be kept. New subsection 219F(4) specifies that these rules are a disallowable instrument.

New Section 219G - Former approved child care service to keep records

New subsection 219G(2) requires the last operator of a service that ceases to be an approved child care service to keep records as the service would otherwise have been obliged to keep under new section 219F had it not ceased to be an approved child care service

Despite the service ceasing to be an approved child care service, new subsection 219G(1) requires the last operator of the service to retain such records for the period for which the service would have been required to keep it under new section 219F.

The penalty for non-compliance with the obligations under this new section is 60 penalty units.

New Section 219H - Appointment of authorised officers

New section 219H provides that the Secretary may appoint an appropriately qualified officer to be an authorised officer for the purposes of exercising powers under new section 219K concerned with entering premises to inspect records. The appointment must be made in writing.

New Section 219J - Identity cards

This new section deals with identity cards for persons appointed by the Secretary as authorised officers. New subsection 219J(1) provides that the Secretary may provide an authorised officer with an identity card. The form of the card must be approved by the Secretary. The identity card must bear a recent photograph of the authorised officer.

New Section 219K - Power to enter premises to inspect records

New subsection 219K(1) deals with the powers of an authorised officer. An authorised officer may, for the purpose of inspecting records, enter the premises of an approved child care service during the service's hours of operation or the premises of the former operator of an approved child care service during the business hours. In the case of an approved child care service, the relevant records are the records required to be kept under new subsection 219F(1). In the case of the former operator of an approved child care service, the relevant records are the records required to be kept under new subsection 219G(2).

New subsection 219K(2) describes the circumstances in which an authorised officer is authorised to enter premises. An authorised officer may not enter premises unless the occupier, or a person who can reasonably be considered to represent the occupier, has given consent. In addition to obtaining consent, the authorised officer must comply with any request by the occupier to show his or her identity card.

New subsection 219K(3) requires an authorised officer to leave premises if asked by the occupier or a person who can reasonably be considered to represent the occupier.

New subsection 219K(4) provides that it is a responsibility of an approved child care service to cooperate with an authorised officer exercising powers under new section 219K. (This responsibility is set out in new subsection 196(2A) inserted in the Family Assistance Admin Act by item 139 of Part 3 of Schedule 2 to this Bill.) Refusal to consent to the authorised officer's entry, or withdrawal of consent, is a failure to comply with this responsibility and may result in the Secretary imposing one or more sanctions under section 200 of that Act.

New Section 219L - Occupier to provide authorised officer with access to records and assistance

New subsection 219L(1) requires the occupier of the premises of an approved child care service, or a person who can reasonably be considered to represent the occupier, to produce any of the records the service keeps in compliance with the obligation under new subsection 219F(1). The occupier may be asked to produce the records to the authorised officer or to any other person assisting the authorised officer.

New subsection 219L(2) requires the occupier of the premises of the former operator of an approved child care service, or a person who can reasonably be considered to represent the occupier, to produce any of the records the former operator keeps in compliance with the obligation under new subsection 219G(2). The occupier may be asked to produce the records to the authorised officer or to any other person assisting the authorised officer.

New subsection 219L(3) requires the occupier or any person who can reasonably be considered to represent the occupier to give the authorised officer all reasonable assistance in the exercise of the authorised officer's powers.

The penalty for non-compliance with the obligations under this new section is 60 penalty units.

New subsection 219L(4) provides that it is a responsibility of an approved child care service to cooperate with a person exercising the powers of an authorised officer. (This responsibility is set out in new subsection 196(2A) inserted in the Family Assistance Admin Act by item 139 of Part 3 of Schedule 2 to this Bill.) Failure to produce the record or give assistance is a failure to comply with this responsibility and may result in the Secretary imposing one or more sanctions under section 200 of that Act.

New Section 219M - Obligation to notify Secretary if operator intends to stop operating an approved child care service

New subsection 219M(1) provides that the operator of a service must give at least 30 days advance notice before ceasing to operate the service. Such notice must be given in accordance with new subsection 219M(2). New subsection 219M(2) provides that such notice must be given in a manner notified to the service in writing by the Secretary.

The penalty for non-compliance with the obligations under this new section is 60 penalty units.

New Section 219N - Obligation to give reports to Secretary

New subsection 219N(1) provides that a service must give the Secretary a report, in relation to any care given to a child in a reporting period, in a specified manner and including specified information, subject to the child's particular circumstances. New subsection 219N(2) requires the report to be given during the next reporting period, in a form and manner approved by the Secretary.

The penalty for non-compliance with the obligations under this new section is 60 penalty units.

New subsection 219N(3) sets out the information to be provided in a report if an individual is conditionally eligible for CCB in respect of the child. Apart from the information set out in the new subsection, the report must include any other information required by the Secretary in the approved form.

New subsection 219N(4) sets out the information to be provided in a report if the service is eligible for CCB in respect of the child. Apart from the information set out in the subsection, the report must include any other information required by the Secretary in the approved form.

New subsection 219N(5) sets out the information to be provided in a report if no individual is conditionally eligible and the service is not eligible in respect of the child. Apart from the information set out in the subsection, the report must include any other information required by the Secretary in the approved form.

New subsection 219N(6) provides that a service may, at any time, correct any errors in a report it has provided.

New Section 219P - Former operator of an approved child care service to report

New subsection 219P(1) requires the last person to operate a service prior to it ceasing to be an approved child care service to submit a report to the Secretary in respect of its final reporting period.

The penalty for non-compliance with the obligations under this new section is 60 penalty units.

New subsection 219P(2) provides that the information that must be in the report is the information that the service would otherwise have been required to include under the new section 219N.

New subsection 219P(3) requires the former operator to give the report under this section within 90 days of the service ceasing to be an approved child care service and to give it in a form and manner approved by the Secretary.

New subsection 219P(4) defines "final reporting period" to mean the reporting period in which the service ceased to be an approved child care service.

NEW DIVISION 2 - ADVANCES TO APPROVED CHILD CARE SERVICES

New Section 219Q - Secretary may determine advances to be paid to approved child care services

During a reporting period, a service makes fee reductions to the children of conditionally eligible individuals (new section 219A refers) and children in respect of whom the service is eligible (new section 219B refers). New subsection 219Q(1) provides that the Secretary may determine advances to be paid to a service to cover those fee reductions.

New subsection 219Q(2) provides that for each advance, the Secretary may also determine if the advance is to be paid in whole or by instalments and the date or dates on which payment will be made.

New Section 219R - Payment of advances

New section 219R enables any difference between an earlier advance for a reporting period and the amount that should have been advanced for that reporting period to be corrected by an adjustment to a subsequent advance. (The Secretary may determine under the new section 219S how the difference is to be dealt with under new section 219R.)

New subsection 219R(1) provides that the amount of an advance is the amount determined under the new section 219Q, plus or minus any adjustment necessary in respect of a previous reporting period. If there is no adjustment necessary, the amount payable is the amount determined under section 219Q.

The new subsection 219R(2) provides that the section is subject to Part 4 of the Act, dealing with overpayments and debt recovery.

New Section 219S - Acquittal of advances paid to approved child care services

New subsection 219S(1) provides that on receipt of a report, the Secretary must compare the amount of the advance determined under new section 219Q for the relevant reporting period with the amount passed on by the service in reduced fees for that period.

New subsection 219S(2) provides that if, for a reporting period, the amount of an advance is later found to exceed the amount of the reduced fees, the Secretary may determine that the excess portion is to be offset against an advance for another reporting period. New subsection 219S(3) provides that if the Secretary makes such a determination, the amount must be offset in accordance with new subsection (2).

New subsection 219S(4) provides that if, for a reporting period, the amount of an advance is later found to be less than the amount of the reduced fees, the Secretary may determine that the shortfall be paid as part of another advance. New subsection 219S(5) provides that if the Secretary makes such a determination, the amount must be paid in accordance with new subsection (4).

New Section 219T - Notice of determinations to pay and acquit advances

As explained, the Secretary makes determinations under new section 219Q to pay advances. New section 219T provides that the Secretary must give a service notice of such a determination and sets out the information it must contain so that the service understands how the amount of the advance was arrived at and has clear expectations as to how and when it will be paid.

The determination is not ineffective if these notice requirements are not complied with.