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 3 - Common Provisions Relating to Family Assistance

Overview of Part 3 of Schedule 2

Part 3 amends common provisions in the FA Admin Act that apply to family assistance payments generally.

These amendments provide for the insertion and amendment of definitions that support other amendments made in Parts 1 and 2 of Schedule 2 to this Bill.

Amendments are also made in the areas of payment protection, overpayments and debt recovery, review of decisions, information management, approval of child care services and registered carers and other matters.

Explanation of Amendments

Amendments to definitions

Items 62 to 67 amend the definitions in subsection 3(1) of the FA Admin Act.

Item 62 inserts a definition of "bank". This term is used in the new provisions that require a claimant to provide bank account details. "Bank" is defined as including, but not being limited to, a body corporate that is an authorised deposit-taking institution for the purposes of the meaning of the Banking Act 1959 .

Item 63 inserts a definition of Family Assistance Administration Act. This term means the A New Tax System (Family Assistance) (Administration) Act 1999 .

Item 64 amends the definition of "family assistance law" so that it also includes the transitional and saving provisions contained in Schedules 5 and 6 to this Bill.

Item 65 to 67 amend definitions relevant for the purposes of the TFN requirement.

The definition of "TFN claim person" is amended so that the definition also applies to claims for CCB. For FTB, the definition remains unchanged.

For CCB, a "TFN claim person" means:

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the claimant; and

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if the claim is for CCB by fee reduction - the claimant's partner (if any) at the time of claim; and

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if the claim is for CCB for a past period for care provided by a service - any partner of the claimant during the past period.

The definition of "TFN determination person" is amended so that the definition also applies to claims for CCB. For FTB, the definition remains unchanged. For CCB, a "TFN determination person" means:

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in relation to a determination under which a claimant who is an individual is conditionally eligible for CCB by fee reduction - the claimant or any partner of the claimant since the determination was made; or

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in relation to a determination under which a claimant who is an individual is entitled to be paid CCB for a past period for care provided by a service - the claimant or any partner of the claimant during the past period.

A new definition of "TFN substitution person" is inserted into subsection 3(1) of the FA Admin Act. The new definition is relevant for the new provisions that impose a TFN requirement for claims in substitution because of the death of another individual. Where such a claim is made, the TFN substitution person is the deceased individual and any partner of the deceased individual during the period in respect of which the payment is claimed.

Amendments relating to payment protection

Section 66 of the FA Admin Act provides for the inalienability of FTB, FTB advances, maternity allowance, maternity immunisation allowance, CCB and, if provided for in regulations, advances to services.

Item 68 repeals the regulation making power referred to above and inserts the payment of advances to services as a payment that is inalienable.

This general rule against inalienability has effect subject to provisions that allow the Secretary to redirect payment to a third party on behalf of the person. For CCB, this issue is dealt with by regulation making power that is reflected in the wording of paragraph 66(2)(a). This regulation making power is being repealed and replaced with substantive provisions. Item 69 reflects these changes by omitting the reference to a regulation making power from paragraph 66(2)(a) and inserting instead a reference to the relevant CCB provisions dealing with payment to a third party.

Items 70 to 75 make consequential amendments to subsection 66(2) as a result of the relocation of existing sections 227 and 228 of the FA Admin Act (these provisions become new sections 84A and 92A) and other changes to the overpayment and debt recovery provisions contained in Part 3 of Schedule 2 to this Bill.

Amendments relating to overpayments and debt recovery

Part 4 of the FA Admin Act deals with overpayments and debt recovery. Part 4 is amended as follows.

Section 68 of the FA Admin Act defines the term "amount paid to a person" as used in Part 4 of the FA Admin Act. Item 76 replaces existing subsection 68(1) with new subsections 68(1) and (1A).

Under new subsection 68(1), an amount paid to a person in respect of whom an determination of entitlement to be paid CCB has been made means the amount of the entitlement.

Under new subsection 68(1A), an amount paid to a person in respect of whom an determination of entitlement to be paid CCB by fee reduction has been made consists of:

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the amount received by the individual as fee reductions in the relevant income year or by a service in the relevant financial year from one or more payments of an amount of an advance to reimburse the service for fee reductions made for care provided by the service; and

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the amount, as paid to the person, of the difference referred to in subsection 56(1) in the case of an individual and in subsection 56B(1) in the case of a service.

Section 69 of the FA Admin Act defines the term "an amount being paid to an approved child care service". This definition is recast by item 77 so that it more accurately reflects CCB terminology and concepts.

New section 69 provides that a reference to an amount being paid to a person when the person is an approved child care service includes an amount that is paid to the service at a time when the service is no longer approved or the service operator no longer operates the service.

Item 78 repeals section 71 and inserts a series of new provisions that outline the situations in which debts arise under the FA Admin Act.

New section 71 outlines the situations in which payments of FTB, maternity allowance or maternity immunisation allowance are debts owed to the Commonwealth. New section 71 replicates the substance of existing subsections 71(1) and (5).

New section 71A ensures that an amount of an FTB advance that has not been repaid by reductions from an individual's FTB Part A rate is a debt owed to the Commonwealth. The amount of the debt is worked out by dividing the FTB advance rate by 365 and then multiplying the result by the number of days in the individual's FTB advance period during which the individual's Part A was reduced because of the payment of the advance.

The remaining new provisions deal with CCB debts.

New section 71B provides that if an amount of:

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fee reductions have been made in respect of an individual in respect of a period; or

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CCB has been paid to a person in respect of a period,

and the person was not entitled to the amount, the amount paid is a debt due to the Commonwealth by the person.

Under new section 71C, if a person receives an amount of CCB that is greater than the amount that should have been paid to the person under the family assistance law, then the difference between the amount paid and the correct amount is a debt due to the Commonwealth by the person.

New section 71D deals with the situation where CCB is paid to a service or an individual because of a false or misleading statement made by the individual.

New subsection 71D(1) applies where:

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an individual knowingly makes a false or misleading statement to a service or an officer;

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an amount of CCB is paid to a service for a session of care provided to a child who was in the individual's care immediately before the session was provided; and

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because of the false or misleading statement, the service considers itself to be eligible for CCB or considers itself to be eligible for an amount of CCB in respect of the child and the session..

Where this happens, the difference between the amount paid to the service and the amount that would have been paid to the service but for the false or misleading statement is a debt due to the Commonwealth by the individual. New subsection 71D(2) provides that the amount that would have been paid to the service but for the false or misleading statement can be nil.

New subsection 71D(3) applies where:

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an individual knowingly makes a false or misleading statement to a service;

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the service, in reliance on the statement certifies a rate of CCB or gives a certificate relating to a weekly limit of hours; and

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an amount of CCB is paid to the individual because of the certificate.

Where this happens, the difference between the amount paid to the individual and the amount that would have been paid to the individual but for the false or misleading statement is a debt due to the Commonwealth by the individual.

New section 71E deals with situations where CCB is paid because of a false or misleading statement made by a service.

New subsection 71E(1) applies where:

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a service certifies a rate in relation to a session of care provided to an FTB child of an individual or the individual's partner or a child who was in the care of the individual's care immediately before the session was provided;

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the service certifies the rate knowing that the reason for certifying the rate does not apply to the child or the individual; and

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an amount of CCB is paid because of the certificate.

Where this happens, the difference between the amount paid and the amount that would have been paid if the service had not certified the rate is a debt due to the Commonwealth by the service.

New subsection 71E(2) applies where:

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a service gives a certificate relating to a weekly limit of hours in sessions of care provided to an FTB child of an individual or the individual's partner or a child who was in the individual's care immediately before the session was provided;

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the service gives the certificate knowing that the reason for giving the certificate does not apply to the child or the individual; and

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an amount of CCB is paid because of the certificate.

Where this happens, the difference between the amount paid and the amount that would have been paid if the service had not given the certificate is a debt due to the Commonwealth by the service.

New subsection 71E(3) applies where a service knowingly makes a false or misleading statement to an officer, a determination of rate is made by the Secretary in reliance of the statement and an amount of CCB is paid accordingly. In this situation, the difference between the amount paid because of the determination and the amount that would have been paid if the service had not made the statement is a debt due to the Commonwealth by the service.

New subsection 71E(4) applies where a service knowingly makes a false or misleading statement to an officer, a variation of a determination of a weekly limit of hours is made by the Secretary in reliance of the statement and an amount of CCB is paid accordingly. In this situation, the difference between the amount paid and the amount that would have been paid if the service had not made the statement is a debt due to the Commonwealth by the service.

New section 71E(5) applies where:

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a service considers itself eligible for CCB in respect of care provided to a child at risk;

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the service knows that the child is not at risk;

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a determination of entitlement to be paid CCB by fee reduction has been made in respect of the service; and

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an amount of CCB is paid because of the determination.

In this situation, the difference between the amount paid and the amount that would have been paid if the service was not so eligible is a debt due to the Commonwealth by the service.

New section 71F takes account of the possibility of the one amount being a debt owed by both an individual and a service.

This can happen where an individual owes a debt under new section 71B or 71C and all or some of that amount of the debt is attributable to a false or misleading statement by a service for which the service also owes a debt under new section 71E. Where this happens, new subsection 71F(1) provides that the amount of the debt owed by the individual that is also a debt of the service is a debt owed by the service and not the individual.

The converse scenario is where a service owes a debt under new section 71B or 71C and all or some of the amount of the debt is attributable to a false or misleading statement by an individual for which the individual also owes a debt under new section 71D. Where this happens, new subsection 71F(2) provides that the amount of the debt owed by the service that is also a debt of the individual is a debt owed by the individual and not the service.

New section 71G deals with the situation where an advance is paid to a service to reimburse the service the amount of fee reductions made for care provided by the service to a child and during or after the reporting period in respect of which the advance is paid, the service's approval is suspended or cancelled or the service ceases to operate. Where this happens, so much of the amount of the advance that has not been used by the service to reimburse itself for care provided to the child by the day on which the service's approval is suspended or cancelled or the service ceases to operate, is a debt due by the service to the Commonwealth.

Under new section 71H, a debt arises where:

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a service has committed amounts of CCB in a reporting period by certificates given under section 76 of the Family Assistance Act; and

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the total amount of CCB committed exceeds the reporting period limit for that reporting period; and

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the service gives a further certificate during that reporting period; and

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an amount of CCB is paid because of that further certificate.

In this situation, the difference between the amount paid and the amount that would have been paid if the further certificate had not been given is a debt due to the Commonwealth by the service.

Item 79 amends paragraph 74(a) of the FA Admin Act by omitting the word "instalment" and substituting "amount". Section 74 operates to create a debt where a person other than the payee who is paid an instalment of family assistance by cheque obtains the value of the cheque without the endorsement of the payee. The effect of this amendment is to expand the coverage of section 74 so that it cover any "amount" of family assistance that is paid by cheque and not just an "instalment" of family assistance paid by cheque.

Section 77 of the FA Admin Act provides for the payment of interest on a debt where the debtor fails to enter into an agreement to repay the debt. Section 77 does not apply if the debtor is a person who is receiving instalments of family assistance or the debtor is a service who is receiving group payments. These exclusions, contained in paragraph 77(1)(b) are flawed in two respects. First, the only instalment payments available under the family assistance law are instalments of FTB. Second, a group payment to a service is not a concept known under the family assistance law (although it is a concept relevant under the current child care payments regime). Item 80 amends paragraph 77(1)(b) to remedy these flaws.

Section 78 of the FA Admin Act provides for the payment of interest on a debt where the debtor breaches an agreement to pay the debt. Item 80 makes similar amendments to paragraph 78(1)(b) for similar reasons.

Item 81 repeals sections 82 and 83 of the FA Admin Act and replaces these provisions with new section 82.

New section 82 serves the same purpose as its predecessor (outlines the available methods of recovering a debt) but is relocated into Division 3 of Part 4 of the FA Admin Act and amended to take account of the changes made to the debt recovery provisions by Part 3 of Schedule 2 to this Bill (as described below). Existing section 83 is not required and is therefore not replaced.

Item 82 repeals existing section 84 and substitutes a new section 84. The new provision operates to enable recovery of a debt arising under the FA Admin Act or the Social Security Act by deductions from instalments of FTB. This is a more precise description of the deductions that can be made under section 84. FTB is the only family assistance payment that can be paid by instalment and therefore deducted under section 84 to recover a debt.

The new section 84 does not incorporate existing subsections 84(3) and (4).

Deductions from CCB are not appropriate because the ongoing benefit of CCB is passed on to a customer by fee reduction. Existing subsection 84(3) is therefore repealed. When an end of year entitlement determination is made in relation to CCB, a CCB debt can be offset against arrears of CCB under new section 84A (described below).

Existing subsection 84(4) is not required. New section 82 provides for the recovery of a debt by one or more specified means including deductions from instalments of FTB. Deductions cannot occur if the debt is waived or written off by operation of Division 4 or where the debt is recovered using an alternative method of recovery (in this case there is no debt to which section 84 can apply).

Item 82 also inserts new section 84A. The new provision is based on existing section 227 of the FA Admin Act. Section 227 is essentially a method of debt recovery and is therefore moved from its present location to Division 3 of Part 4 (methods of recovery).

New section 84A applies to a person who is entitled to an arrears payment of family assistance and to a debt owed by the person that is recoverable under new section 84A or is a debt under the Social Security Act.

Where new section 84A applies, the Secretary may determine that the whole or part of the entitlement to arrears of family assistance is to be set off against the debt.

However, the Secretary may set off an entitlement to arrears of CCB only against a CCB debt.

Item 83 repeals section 85 of the FA Admin Act. This provision relates to CCB group payments. This concept is not used in relation to CCB in the family assistance law.

Section 86 of the FA Admin Act provides time limits on taking recovery action under sections 84 and 85.

Items 84 to 90 amend various provisions in section 86 so that:

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the time limits in section 86 also apply to recovery action taken under new sections 84A and 87A;

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references to the repealed section 85 are omitted; and

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section 86 does not refer to action "under this section" - action to recover a debt is not taken under section 86 but under the relevant debt recovery provision.

Item 91 inserts a new section 87A into the FA Admin Act.

New section 87A applies to a debt that, under section 82, is recoverable by means of setting off the debt against amounts of one or more advances to be paid to a service.

The setting off works as follows:

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the Secretary is to determine the amount by which each advance to the service is to be reduced; and

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each advance is reduced by the amount determined by the Secretary until the debt is paid.

The Secretary may vary, from time to time, the amount by which an advance is to be reduced.

Section 88 provides for the recovery of a debt by legal proceedings and imposes time limits on the taking of action under section 88 to recovery a debt. Items 92, 93 and 94 make some technical changes to subsection 88(6). References to new sections 84A and 87A are also inserted into subsection 88(6) to ensure that if action must be taken to recover a debt under subsection 88(2) or (3) within a particular period and, within that period, action is also taken under new section 84A or 87A to recover the debt, then action under section 88 may be commenced within a period of 6 years after the end of the action under new section 84A or 87A. Subsection 88(6) operates in the same manner where action is taken under section 84 to recover a debt.

Section 90 of the FA Admin Act provides time limits on the recovery of a debt by garnishee notice. Item 95 amends subsection 90(5) so that if action must be taken to recover a debt under subsection 90(1) or (2) within a particular period and, within that period, action is also taken under section 84, 84A, 87, 87A or 88 to recover the debt, then action under section 90 may be commenced within a period of 6 years after the end of the action under one of these sections.

Under section 91 of the FA Admin Act, the Secretary can allow a person to pay a debt in one or more instalments. Item 96 makes a technical change to subsection 91(1) so that section 91 applies if, under section 82, a debt owed by a person is recoverable by the Commonwealth by one or more instalments.

Item 97 repeals existing section 92 and inserts new sections 92 and 92A.

New section 92 operates where a person (the debtor) owes a debt under the FA Admin Act or other prescribed legislation and another person who is entitled to be paid FTB by instalment consents to deductions being made from the person's instalments of FTB to recover the debt.

In this situation, the Secretary may make such deductions from the other person's instalments of FTB.

Consent may be revoked at any time.

New section 92A is based on existing section 228 of the FA Admin Act. Section 228 is essentially a method of debt recovery and is therefore moved from its present location to Division 3 of Part 4 (methods of recovery).

New section 92A operates where a person (the debtor) owes a debt under the FA Admin Act or other prescribed legislation and another person who is entitled to arrears of family assistance (excluding arrears of CCB) consents to the deductions of an amount of the person's arrears payment to recover the debt.

In this situation, the Secretary may make the relevant deduction from the other person's arrears of family assistance.

Consent may be revoked at any time.

Item 98 makes a minor technical amendment to section 93 of the FA Admin Act.

Section 95 of the FA Admin Act enables the Secretary to write off a debt. This can be done where, among other things, the debt is irrecoverable at law. Subsection 95(3) specifies the circumstances in which a debt is taken to be irrecoverable at law.

Item 99 amends subsection 95(3) to omit the existing reference to the repealed section 85. Items 99 and 100 insert references to new sections 84A (setting off arrears of family assistance) and 87A (setting off against advances) into subsection 95(3). The effect is that a debt is also taken to be irrecoverable at law if the debt cannot be recovered under new sections 84A and 87A because the relevant time limit has lapsed.

The Secretary can also write off a debt under section 95 where the debtor has no capacity to repay the debt. Subsection 95(4) further defines what is meant by a capacity to repay a debt.

Item 101 inserts a new subsection 95(4). The new provision ensures that if a debt is recoverable under section 84, 84A, 87 or 87A, the person is taken to have capacity to repay the debt unless recovery under those provisions would cause the person severe financial hardship. This new provision is similar to existing subsection 95(4) except that it also refers to recovery of a debt by the means provided for in new sections 84A and 87A.

Section 99 of the FA Admin Act provides for the waiver of debts that are less than $200 where it is not cost effective for recovery action to be taken in relation to the debt. Subsection 99(2) provides that this rule does not apply if the debt is at least $50 and can be recovered by deductions under section 84 or 85 of the FA Admin Act or section 1231 of the Social Security Act. Item 102 recasts subsection 99(2) as follows:

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the reference to deductions under the repealed section 85 is omitted;

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the general waiver rule in subsection 99(1) does not apply if the debt is at least $50 and can be recovered by setting off under section 84A or 87A.

Amendments relating to review of decisions

Item 103 repeals Division 1 of Part 5 of the FA Admin Act and substitutes a new Division 1. The complete remaking of Division 1 is necessary because of the volume of changes required to effectively cover the range of CCB decisions available and the insertion of new rules providing for the date of effect of certain decisions and time limits on the review of other decisions.

Subdivision A of Division 1 provides for review of decisions initiated by the Secretary.

New Subdivision A - Review initiated by the Secretary

New Section 104 - Decisions that may be reviewed by the Secretary on own initiative

New section 104 specifies the decisions that are reviewable under new section 105. These decisions are:

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a decision of any officer under the family assistance law except -

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a determination under section 51B in respect of an individual in so far as it relates to a rate certified, or a certificate relating to weekly limit of hours, given by a service;

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an entitlement determination under section 54B in respect of a service in so far as it relates to the service's eligibility for CCB under section 47 of the Family Assistance Act or to a rate certified, or a certificate relating to a weekly limit of hours, given by a service;

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a decision by the Secretary under Division 2 of Part 8A (that deals with advances to services; and

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a decision under subsection 91A(3) of the Child Support (Assessment) Act 1989 that is made after 1 July 2000."

New Section 105 - Secretary may review certain decisions on own initiative

New section 105 allows the Secretary to review such a decision on the Secretary's own initiative if the Secretary is satisfied that there is sufficient reason to do so and even if there has been an application made to the SSAT or AAT in respect of the decision. However, the Secretary cannot review a decision under new section 105 if a person has applied for review of that decision under new section 109A.

If the Secretary reviews a decision under new section 105, the Secretary may affirm or vary the original decision or set aside the original decision and substitute a new decision.

If the original decision is set aside and the Secretary is satisfied that an event would have occurred had the original decision not been made, then that event can be deemed to have occurred for the purposes of the review.

New Section 106 - Notice of review decisions to be given

New section 106 outlines the situations in which a notice of the review decision must be given and to whom.

A review decision relating to conditional eligibility for CCB by fee relief must be notified to an applicant and any service providing care to the child concerned in the following circumstances. First, the review decision must be to vary the original decision or to set aside the original decision and substitute a new decision. Second, the review decision must relate to one of the following types of determinations:

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conditional eligibility;

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a weekly limit of hours (unless the hours are set because the child concerned is at risk);

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CCB%;

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schooling %;

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rate;

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no entitlement determination.

A review decision relating to conditional eligibility for CCB by fee relief where the original decision:

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is varied or set aside and a new decision substituted; and

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relates to a weekly limit of hours or rate set because the child concerned is at risk,

must be notified to the service providing care to the child concerned.

Otherwise, where an original decision is varied or is set aside and a new decision substituted, the Secretary must give notice of the review decision to anyone affected by the decision. If the original decision is a decision under subsection 91A(3) of the Child Support (Assessment) Act 1989 about an agreement, then the review decision must be notified to both parties to the agreement.

The notice must state the effect of the review decision and the fact that there are further review rights in relation to the decision.

The validity of a review decision is not affected by a failure to comply with the above notice obligations.

If a review decision is made to vary or set aside an original decision and, by the time the review decision is made, an application has been made to the SSAT or AAT for review of the original decision, then the Secretary must also notify the SSAT or AAT of the review decision.

New Section 107 - Date of effect of certain decisions made under section 105

New section 107 provides date of effect rules for favourable decisions relating to the payment of FTB by instalment and certain CCB decisions.

New subsection 107(1) applies to review decisions relating to the payment of FTB by instalment that have a favourable effect (ie, that create or increase entitlement) where the review decision is made more than 52 weeks after the person concerned was notified of the original decision. The date of effect of such a review decision is:

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the date that would give full effect to the review decision; or

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if this day is earlier than the first day in the income year before the income year in which the review decision is made, that first day.

This rule allows full arrears to be paid following Secretary initiated review if the review decision is made within 52 weeks after notification of the original decision or by the end of the income year after the income year in which the circumstance to which the review relates occurred.

New subsection 107(2) provides a similar outcome in relation to review decisions relating to a determination of a weekly limit of hours, CCB%, schooling% or a no entitlement determination, where the review decision has a favourable effect (ie, it creates or increases entitlement to be paid CCB by fee reduction) and is made more than 52 weeks after the person concerned was notified of the original decision.

The date of effect rules described above do not apply where the review was undertaken by the Secretary because the Commissioner of Taxation had made an assessment of taxable income for a particular income year of each person:

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whose taxable income is relevant in determining the person's eligibility for, or rate of FTB or CCB%; and

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who was required to lodge a tax return in respect of that income year,

on the basis of the return lodged by each such person before the end of the next income year.

This rule in new subsection 107(3) ensures that full arrears are available if the review decision relates to an initial assessment of taxable income by the Commissioner of Taxation and the relevant person lodged his or her tax return before the end of the income year following the income year to which the assessment relates.

Subdivision B of Division 1 provides for review of decisions initiated by an applicant.

New Section 108 - Decisions that may be reviewed under section 109A

As a general rule, a decision of an officer under the family assistance law and a decision under subsection 91A(3) of the Child Support (Assessment) Act 1989 that is made on or after 1 July 2000 can be subject to customer initiated review under new section 109A.

However, new subsection 108(2) specifies those decisions that are not subject to review under new section 109A. These decisions are:

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a decision made by the Secretary personally or by another agency head;

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a determination under section 51B in respect of an individual in so far as it relates to a rate certified, or a certificate relating to a weekly limit of hours, given by a service;

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an entitlement determination under section 54B in respect of a service in so far as it relates to the service's eligibility for CCB under section 47 of the Family Assistance Act or to a rate certified, or a certificate relating to a weekly limit of hours, given by a service;

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a decision by the Secretary under Division 2 of Part 8A (that deals with advances to services;

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a determination about a person's eligibility for, or entitlement to FTB that is wholly or partly based on an estimate of adjusted taxable income other than a determination under section 19 or 28A because the person provided an unreasonable estimate of adjusted taxable income;

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a determination about a person's entitlement to CCB or a person's CCB% that is wholly or partly based on an estimate of adjusted taxable income other than a determination under specified provisions because the person provided an unreasonable estimate of adjusted taxable income.

In relation to the last two exceptions, new subsection 108(3) allows these decisions to be reviewed under new section 109A where the review is sought after the end of the income year to which the estimate relates and either:

•

the Commissioner of Taxation had made an assessment of taxable income for a particular income year of each person whose taxable income is relevant in determining the person's eligibility for, or rate of FTB or CCB% and who was required to lodge a tax return in respect of that income year, on the basis of the return lodged by each such person before the end of the next income year; or

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there was no person whose taxable income was relevant in determining the person's eligibility for, or rate of family assistance or CCB% who was required to lodge a tax return.

New subsection 108(4) provides that a determination about a person's eligibility for, or entitlement to, FTB that was based on an estimate of maintenance income in a particular income year can be reviewed under new section 109A after the end of that income year.

The rules in new subsections 108(3) and (4) are a mechanism for ensuring that decisions based on an estimate in respect of a particular income year are not reviewed until the end of that income year. This is when the process of comparing estimates with adjusted taxable income and, where relevant, maintenance income takes place. However, this does not mean that determinations cannot be prospectively varied where a person provides a revised estimate to the Secretary that is reasonable or the Secretary revises a person's maintenance income for a particular income year.

New Section 109 - Persons affected by certain child support decisions

New section 109 deals with decisions under subsection 91A(3) of the Child Support (Assessment) Act 1989 about a particular agreement.

This provision ensures that both parties to the agreement are taken to be "affected" by the decision for the purposes of applying for review of the decision under new section 109A, although only one party can apply for review. If a person does apply for review of such a decision, the decision reviewer must ensure that the other party to the agreement is informed of the application and its contents and is given the opportunity to make a submission in connection with the review.

New Section 109A - Review initiated by applicant of certain decisions

A person affected by a reviewable decision may apply to the Secretary for review of that decision.

The Secretary can either review the original decision or arrange for an authorised review officer (ARO) to do so.

The original decision can then be affirmed or varied or set aside and a new decision substituted.

Under new subsection 109A(3), if the original decision is set aside and the Secretary or ARO is satisfied that an event would have occurred had the original decision not been made, then that event can be deemed to have occurred for the purposes of the review.

New subsection 109A(4) deals with the situation where a person applies to the SSAT for review of a decision without first having applied to the Secretary for review of the decision. Where this happens, the person is taken to have applied to the Secretary for review of the decision under new section 109A.

New Section 109B - Notice to be given of decisions under section 109A

New section 109B outlines the situations in which a notice of the review decision must be given and to whom.

A review decision concerning an individual's conditional eligibility to be paid CCB by fee relief must be notified to the individual and any service providing care to the child concerned in the following circumstances. First, the review decision must be to vary the original decision or to set aside the original decision and substitute a new decision. Second, the review decision must relate to a determination of conditional eligibility, a weekly limit of hours, CCB%, schooling %, rate or a determination of no entitlement.

Otherwise, the Secretary or ARO must give the applicant written notice of his or her review decision. If the original decision is a decision under subsection 91A(3) of the Child Support (Assessment) Act 1989 about an agreement, then the other party to the agreement must also be notified of the review decision.

New Section 109C - Authorised review officers (AROs)

New section 109C enables the Secretary to authorise officers to be AROs for the purposes of Division 1 of Part 5 of the FA Admin Act. The Secretary can only authorise an officer of an agency other than the Department to be an ARO with the agreement of the agency head.

New Section 109D - Review applications - time limits applicable to review of certain decisions

Subject to various exceptions discussed below, an application for internal review of a decision (other than an excepted decision) must be made within 52 weeks after the applicant is notified of the original decision.

New subsection 109D(6) defines an "excepted decision" as a decision:

•

relating to the payment of FTB by instalment; or

•

to raise a debt under Division 2 of Part 4 of the FA Admin Act.

Under new subsection 109D(2), the 52 week time limit can be extended by the Secretary in special circumstances.

New subsections 109D(3) and (4) provide further exceptions to the 52 week time limit on applying for internal review.

The rules in new subsection 109D(3) have the effect of extending the time limit in specified circumstances to the end of the income year after the income year in which the circumstance occurred/ended.

For FTB past period decisions, the time limit would be extended to the end of the income year after the income year in which the past period occurs. This is done by excepting from the 52 week time limit a decision that a person is or is not entitled to be paid FTB for a past period if the period occurs in the income year in which the application is made or the previous income year.

For FTB bereavement decisions, the time limit would be extended to the end of the income year after the income year in which the death occurs.

For decisions that relate to a period spanning two income years (eg, a decision that a weekly limit of hours applies to a person for a specified period), the time limit would be extended to the end of the income year following the income year in which the period ended.

Similar outcomes apply in relation to the following decisions:

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a rate of CCB applies to a person for a specified period;

•

a weekly limit of hours, CCB% or schooling% applies to a person;

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that a person is not entitled to CCB by fee reduction;

•

that a person is not entitled to CCB provided by a registered carer for a past period;

•

that person is or is not entitled to a CCB bereavement payment for care provided by a registered carer .

Under new subsection 109D(4), an application for review of a decision can also be made outside the 52 week time limit where the decision relates to an assessment of taxable income of a relevant person by the Commissioner of Taxation and the person lodged his or her tax return before the end of the income year following the income year to which the assessment relates.

Similarly, where the decision relates to:

•

a review of taxable income of a relevant person by the Commissioner of Taxation and the person lodged his or her tax return before the end of the income year following the income year to which the assessment relates; or

•

in the case of FTB, a review of child support entitlement of a relevant person by the Child Support Registrar,

and the application for review is made within 13 weeks after the relevant person is notified by the Commissioner or the Child Support Registrar of the outcome of the review, then the 52 week time limit on review would not apply.

New subsections 109D(5) and (6) define the terms and expressions used in new section 109D. Depending on the context in which the term appears, "relevant person" means:

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any person whose taxable income is relevant in determining a person's eligibility for, or rate of, family assistance or CCB%; and

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any person whose entitlement to child support is relevant in determining a person's rate of FTB.

The concept of excepted decision has been described above.

"Determination decision" means a determination as originally made or as varied from time to time.

New Section 109E - Date of effect of certain decisions relating to payment of FTB by instalment

New section 109E provides date of effect rules for favourable decisions relating to the payment of FTB by instalment.

New subsection 109E(1) applies to review decisions relating to the payment of FTB by instalment that have a favourable effect (ie, that create or increase entitlement) where the application for review is made more than 52 weeks after the person concerned was notified of the original decision. The date of effect of such a review decision is:

•

the date that would give full effect to the review decision; or

•

if this day is earlier than the first day in the income year before the income year in which the application is made, that first day.

This rule allows full arrears to be paid following customer initiated review if an application for review is made within 52 weeks after notification of the original decision or by the end of the income year after the income year in which the circumstance to which the review relates occurred.

New subsection 109E(2) allows the Secretary, in special circumstances, to determine that new subsection 109E(1) applies as if existing references to 52 weeks were to such longer period as determined by the Secretary.

Under new subsection 109E(3), the above date of effect limitation does not apply to a review decision that is made on an application for review of an original decision where the original decision relates to an assessment of taxable income of a relevant person by the Commissioner of Taxation and the person lodged his or her tax return before the end of the income year following the income year to which the assessment relates.

Similarly, where the original decision relates to:

•

a review of taxable income of a relevant person by the Commissioner of Taxation and the person lodged his or her tax return before the end of the income year following the income year to which the assessment relates; or

•

a review of child support entitlement of a relevant person by the Child Support Registrar,

and the application for review is made within 13 weeks after the relevant person is notified by the Commissioner or the Child Support Registrar of the outcome of the review, then the date of effect limitation in new subsection 109E(1) would not apply to the resultant review decision.

New subsection 109E(4) defines the term "relevant person" for the purposes of new subsection 109E(3). Depending on the context in which the term appears, "relevant person" means:

•

any person whose taxable income is relevant in determining a person's eligibility for, or rate of, FTB; and

•

any person whose entitlement to child support is relevant in determining a person's rate of FTB.

New Section 109F - Withdrawal of review application

Under new section 109F, an applicant can withdraw an application for review at any time before a review decision is made in relation to the application. Withdrawal of an application can be made in writing or any other manner approved by the Secretary.

If an application is withdrawn, it is taken never to have been made.

New Section 109G - Secretary may continue payment etc. pending outcome of application for review

Where an adverse family assistance decision is made, the decision depends on the exercise of a discretion or the holding of an opinion and a person applies under new section 109A for review of the decision, the Secretary may, under new section 109G, decide that the adverse decision is to be "ignored" pending determination of the review.

If the adverse family assistance decision has the effect that the person ceases to be entitled to family assistance or that entitlement is reduced, then the Secretary may declare that entitlement to family assistance continues as if the adverse decision were not made.

If the adverse family assistance decision has the effect that the person ceases to be conditionally eligible for CCB by fee reduction, then the Secretary may declare that conditional eligibility continues as if the adverse decision were not made.

If the adverse family assistance decision has the effect of reducing the person's weekly limit of hours, CCB% or schooling%, then the Secretary may declare that the limit or percentage continues as if the adverse decision were not made.

The Secretary's declaration starts to have effect on the day on which it is made or an earlier day specified by the Secretary and stops having effect if the application for review is withdrawn, a review decision is made by the Secretary or an ARO or the declaration is revoked by the Secretary.

"Adverse family assistance decision" is defined in new subsection 109G(5).

New Section 109H - Notification of further rights of review

New section 109H sets out the requirements for a notice given under new section 109B.

The notice must inform the person of their right to appeal to the SSAT and the AAT and must include a statement about the review decisions that:

•

sets out the reasons for the decision;

•

sets out the finding of fact; and

•

refers to the evidence or other material on which those finding were based.

The notice must also include a statement to the effect that if the applicant is dissatisfied with the SSAT's decision, the applicant may apply to the AAT for review of the SSAT's decision.

Under new subsection 109H(2), the validity of a review decision is not affected by a contravention of the notice requirements in new subsection 109H(1).

Items 104 to 121 inclusive amend Division 2 of Part 5 of the FA Admin Act. These provisions provide for review of decisions by the SSAT.

Section 111 of the FA Admin Act deals with applications for review by the SSAT and outlines those decisions that cannot be reviewed by the SSAT.

Item 104 amends subsection 111(1) by inserting new subsections 111(1A) and (1B).

New subsection 111(1A) ensures that decisions made by the Secretary personally or by an agency head can be reviewed by the SSAT. This amendment corrects an oversight in section 111 as originally enacted.

Under new subsection 111(1B), if a decision is made under subsection 91A(3) of the Child Support (Assessment) Act 1989 about a particular agreement, then both parties to the agreement are taken to be persons whose interests are affected by the decision. This effectively allows either party to apply for review by the SSAT of such a decision.

Items 105 to 107 inclusive amend subsection 111(2) of the FA Admin Act as follows.

Paragraph 111(2)(a) is amended to insert references to CCB provisions that deal with the form and manner of claim. These references replace paragraph 111(2)(b), which is repealed. A minor technical amendment is made to paragraph 111(2)(c) so that the bracketed description accurately reflects the heading used in sections 108 or 112 of the FA Admin Act.

Item 108 inserts a new subsection 111(3). The new provision defines "decision reviewer' as the person (ie, the Secretary or an ARO) who has reviewed the decision as required by new subsection 109A(2).

Item 109 inserts new section 111A into the FA Admin Act dealing with time limits on review by the SSAT.

Under new subsection 111A(1), a person affected by a decision of a decision reviewer under Division 1 (internal review) must apply to the SSAT for review of that decision no later than 13 weeks after notification of the decision of the decision reviewer.

This rule does not apply to an "excepted decision", defined in new subsection 111A(3) as a decision:

•

relating to the payment to the person of FTB by instalment; and

•

relating to the raising of a debt under Division 2 of Part 4.

Under new subsection 111A(2), the SSAT has the discretion to extend the 13 week time limit in new subsection 111A(1) in special circumstances.

Item 109 also inserts new subsection 111B.

New section 111B provides date of effect rules for favourable decisions relating to the payment of FTB by instalment.

New subsection 111B(1) applies to SSAT decisions relating to the payment of FTB by instalment that have a favourable effect (ie, that create or increase entitlement) where the application for review is made more than 13 weeks after the person concerned was notified of the internal review decision. In these circumstances, the date of effect of the SSAT review decision is:

•

the date that would give full effect to the SSAT decision; or

•

if this day is earlier than the first day in the income year before the income year in which the application to the SSAT is made, that first day.

This rule allows full arrears to be paid following SSAT review if an application for SSAT review is made within 13 weeks after notification of the internal review decision or by the end of the income year after the income year in which the circumstance to which the review relates occurred.

New subsection 111B(2) allows the SSAT, in special circumstances, to determine that new subsection 111B(1) applies as if existing references to 13 weeks were to such longer period as determined by the SSAT.

Under section 112 of the FA Admin Act, where an adverse family assistance decision is made, the decision depends on the exercise of a discretion or the holding of an opinion and a person applies to the SSAT for review of the decision, the Secretary may declare that entitlement to family assistance is to continue unaffected by the adverse decision.

Section 112, as currently drafted, does not adequately cover the impact of a declaration by the Secretary on adverse CCB decisions that are not entitlement determinations.

Items 110, 111 and 112 cover this ground.

Item 112 inserts a new definition of "adverse family assistance decision". A decision having the effect that:

•

the person ceases to be conditionally eligible for CCB by fee reduction; or

•

the weekly limit of hours, CCB% or schooling% applicable to the person is reduced,

is included in the definition of "adverse family assistance decision", along with the existing cessation or reduction of entitlement to family assistance.

Item 110 modifies subsection 112(1) so thatit only applies in relation to adverse family assistance decisions having the effect that entitlement to family assistance ceases or is reduced, while item 111 inserts a new subsection 112(1A) to deal with the new categories of adverse family assistance decision described above.

Under new subsection 112(1A), if the adverse family assistance decision has the effect that the person ceases to be conditionally eligible for CCB by fee reduction, then the Secretary may declare that conditional eligibility continues as if the adverse decision were not made. If the adverse family assistance decision has the effect of reducing the person's weekly limit of hours, CCB% or schooling%, then the Secretary may declare that the limit or percentage continues as if the adverse decision were not made.

Section 113 of the FA Admin Act outlines the review powers of the SSAT. Under existing subsection 113(2), if the SSAT sets aside a decision and substitutes it with a decision that the person is entitled to have a payment, the SSAT must either assess the amount of the payment or ask the Secretary to assess the amount. This provision does not adequately cater for the following CCB decisions:

•

that a person is conditionally eligible for CCB by fee reduction;

•

that the weekly limit of hours, CCB% or schooling% applicable to a person is to be increased.

Item 113 recasts subsection 113(2) so that these decisions are covered.

Where the SSAT decides that a person is conditionally eligible for CCB by fee reduction, the SSAT must ask the Secretary to determine the weekly limit of hours, CCB% and schooling% applicable to a person and, if the limit or percentage affects the amount of entitlement - assess that amount.

Where the SSAT decides that the weekly limit of hours, CCB% or schooling% applicable to a person is to be increased, the SSAT must either determine the limit or percentage or ask the Secretary to do so.

Section 115 of the FA Admin Act provides for the date of effect of SSAT decisions. Item 114 repeals this provision.

The date of effect of SSAT decisions relating to the payment of FTB by instalment is dealt with by new section 111B. Otherwise, an SSAT decision would have effect as specified in the decision.

Items 115 to 119 inclusive amend various provisions in the FA Admin Act relating to procedures for review by the SSAT so as to cover review of decisions made under subsection 91A(3) of the Child Support (Assessment) Act 1989 . These decisions are currently reviewable under the social security law because of the connection between the reasonable maintenance action test (applicable for family allowance) and subsection 91A(3). From 1 July 2000, family allowance will be replaced by FTB. The reasonable maintenance action test will, from the date, be relevant for FTB. Subsection 91A(3) will retain its connection to the reasonable maintenance action test applicable to FTB and will therefore be reviewable under the family assistance law.

Items 115 and 116 amend section 118 of the FA Admin Act so that if a party to an agreement that is the subject of a decision under subsection 91A(3) of the Child Support (Assessment) Act 1989 applies to the SSAT for a review of that decision, the other party to the agreement is made a party to the review. The other party can waive his or her right to be made a party to the review.

Item 117 amends section 122 of the FA Admin Act so that if a decision is made under subsection 91A(3) of the Child Support (Assessment) Act 1989 about a particular agreement, then both parties to that agreement are parties whose interests are affected by the decision. This ensures that both parties to the agreement are informed of any application that has been made to the SSAT for review of the decision.

Item 118 amends subsection 139(1) to ensure that the Executive Director of the SSAT may give directions as to the procedures to be followed by the SSAT in reviewing both decisions under the family assistance law and decisions under subsection 91A(3) of the Child Support (Assessment) Act 1989 .

Item 119 amends subsection 139(5) to ensure that a presiding member of the SSAT cannot give directions as to the procedure to be followed in a particular hearing that are inconsistent with subsection 91A(3) of the Child Support (Assessment) Act 1989 .

Item 120 inserts new section 141A into the FA Admin Act. The new provision ensures that the Secretary gives an approved child care service notice of a decision by the SSAT where:

•

the SSAT makes a decision in respect of an individual claiming CCB by fee reduction;

•

the decision is relates to a determination of conditional eligibility, a weekly limit of hours, CCB% or schooling% applicable to an individual or a determination of rate under specified provisions;

•

on the day the SSAT makes the decision, the service is still providing care to the child and a determination that the individual is conditionally eligible for CCB is in force.

Section 142 of the FA Admin Act provides for review of decisions by the AAT.

Item 121 amends section 142 so that if a decision is made under subsection 91A(3) of the Child Support (Assessment) Act 1989 about a particular agreement then both parties to the agreement are taken to be persons whose interests are affected by the decision. This deeming rule is relevant for the purposes applying the Administrative Appeals Tribunal Act 1975 to, or to a matter arising out of, the decision.

Under section 144 of the FA Admin Act, the AAT can review specified decisions that are not subject to internal or SSAT review. One such decision that can be reviewed by the AAT is a decision not to approve a child care service for the purposes of the family assistance law (see paragraph (a)). Under the family assistance law, a service can be approved from a particular day. This decision is not covered under the current formulation in paragraph (a).

Item 122 therefore amends paragraph 144(1)(a) to enable the AAT to also review a decision to approve a service from a particular day.

When the suspension of a child care service is revoked, it is revoked from a specified day. Item 123 amends paragraph 144(1)(d) to reflect this.

Amendments relating to information management

Under section 154 of the FA Admin Act, the Secretary may require a person to give information or produce documents if the Secretary considers the information or documents to be relevant to prescribed matters relating to entitlement and payment of family assistance.

There are other situations in which a similar power is required. These are covered in new subsections 154(2) to (4), as inserted by item 124 .

Under these new provisions, the Secretary would also have the power to require a person to give information or produce documents relevant to any of the following matters:

•

whether a person who has claimed family assistance (other than CCB by fee reduction) but who has not had the claim determined is eligible for family assistance;

•

the amount of CCB for which a person is eligible;

•

whether an individual who has claimed CCB by fee reduction is conditionally eligible;

•

if a determination were to be, or is, made that the individual is conditionally eligible, the weekly limit of hours, CCB% or schooling% that would be, or is, applicable to the individual;

•

what rate of CCB or weekly limit of hours is applicable in respect of a service that is eligible for CCB by fee reduction for care provided to a child at risk.

Item 125 inserts new section 154A into the FA Admin Act.

In broad terms, the new provision provides authority for the exchange of tax file number (TFN) data between the Secretary and the Commissioner of Taxation for the purpose of income reconciliation. At the end of each income year, families paid on an estimate of their adjusted taxable income and required to lodge income tax returns will have their actual income, as assessed by the Commissioner of Taxation, reconciled with the income they estimated. The purpose of reconciliation is to ensure that correct family assistance entitlements have been paid for a particular income year. As the Australian Taxation Office (ATO) uses TFNs as the unique identifier for its customers, using TFNs is the most reliable and timely means by which to reconcile the ATO's income details with family assistance payment details.

More specifically, new subsection 154A(1) identifies the TFNs that are subject to the disclosure rules in the new section 154A, that is, TFNs provided to the Secretary under a provision of the FA Admin Act and for the purposes of that Act.

However, new section 154A will also apply to TFNs provided for the purposes of family allowance, family tax payment or parenting payment in the nature of

non-benefit PP (partnered) by operation of item 21 in Schedule 5 to this Bill. This is because customers who are receiving these social security payments on 30 June 2000 will be "transferred" to FTB without the need for an effective claim. These customers will not be required to satisfy the TFN requirement that is part of the claim process for FTB.

New subsection 154A(2) allows the Secretary to provide to the Commissioner of Taxation a TFN for the purpose of being informed of the amount determined by the Commissioner to be the taxable income of the individual to whom the TFN relates.

Under new subsection 154A(3), the Commissioner may provide the Secretary with particulars of the taxable income of the individual to whom the TFN relates together with the individual's TFN if the Commissioner determines the taxable income of the individual before the end of 2 years after the end of the income year to which the TFN relates.

New subsection 154A(4) requires the Commissioner to destroy the Commissioner's record of a TFN provided in respect of a particular income year 2 years after the end of that income year.

Section 157 of the FA Admin Act enables the Secretary to obtain certain information about a class of persons for prescribed purposes.

Subsection 157(1) allows the Secretary to require a person to provide information about a class of person to:

•

detect cases where amounts of family assistance have been paid to persons not entitled to the payments; and

•

verify the eligibility of persons who have claimed family assistance.

Item 126 clarifies the operation of subsection 157(1) by ensuring that Secretary can require the provision of information to verify the eligibility, conditional eligibility or the applicable weekly limit of hours of persons who have claimed family assistance.

Under existing subsection 157(3), the Secretary may require information about a particular class of persons irrespective of whether or not any persons in that class can be identified as having been paid or entitled to, or who have made claims for, family assistance.

Item 127 recasts subsection 157(3) so that it is also irrelevant whether or not any persons in that class can be identified as having been persons in respect of whom determinations of conditional eligibility for CCB by fee reduction are in force.

Item 128 corrects an oversight in subsection 161(1) of the FA Admin Act. A reference to the Child Support (Registration and Collection) Act 1988 is added into subsection 161(1) to ensure that Division 2 of Part 6 of the FA Admin Act does not prevent the disclosure of information for the purposes of that Act.

Section 171 of the FA Admin Act provides for the extra-territorial application of Division 3. Item 129 amends section 171 to take account of specific CCB decisions that are not covered by the existing provision.

Division 3 also applies to:

•

all persons, irrespective of their nationality, in respect of whom determinations of conditional eligibility for CCB by fee reduction are in force; and

•

all persons, irrespective of their nationality, who are eligible for CCB by fee reduction under section 47 of the Family Assistance Act.

Under section 173 of the FA Admin Act, a person must not knowingly or recklessly make a false or misleading statement to:

•

deceive an officer exercising powers, or performing duties or functions, under the family assistance law; or

•

affect an entitlement to payment of family assistance; or

•

affect the rate of payment.

Items 130 and 131 address some issues particular to CCB that are not covered under existing section 173.

Item 130 ensures that a person must not knowingly or recklessly make a false or misleading statement to deceive an approved child care service exercising powers, or performing duties or functions, under the family assistance law.

Item 131 provides that aperson must not knowingly or recklessly make a false or misleading statement to affect conditional eligibility for CCB by fee reduction, a weekly limit of hours, a CCB% or a schooling% applicable to a person.

Under section 174 of the FA Admin Act, a person must not knowingly or recklessly make a false statement to an officer exercising powers, or performing duties or functions, under the family assistance law or present such an officer with a false document.

Items 132 and 133 amend section 174 so that the provision also covers false statements or documents provided to an approved child care service.

Item 134 omits the words "or recklessly" from section 175. This change brings section 175 into line with the equivalent offence provision in the Social Security Act.

Item 135 inserts new section 175A into the FA Admin Act.

The new provision makes it an offence for an individual to knowingly obtain fee reductions if the individual has not been determined to be conditionally eligible for CCB by fee reduction or to knowingly obtain an incorrect amount of fee reductions.

It is also an offence under new section 175A for an approved child care service that is not eligible for CCB by fee reduction for care provided to a child at risk to knowingly obtain an amount of an advance or an incorrect amount of an advance to reimburse the service the amount of the fee reductions for care provided to the child.

Item 136 recasts section 176 of the FA Admin Act to take account of payments of CCB by fee reduction and payment of advance to approved child care services.

Under the new section 176, a person must not knowingly obtain payment of family assistance, fee reductions or an advance to reimburse the amount of fee reductions for care provided to a child:

•

by means of a false or misleading statement made knowingly or recklessly;

•

by means of impersonation;

•

by fraudulent means.

Item 137 makes a consequential amendment to section 178 to enable a court to order a person who has been convicted of an offence under section 177 to pay the Commonwealth an amount equal to any amount paid by way of fee reductions or advance (as well as family assistance) because of the offence.

Amendments relating to the approval of child care services and registered carers

Section 195 of the FA Admin Act provides for the approval of child care services. Under existing subsection 195(3), if the Secretary approves a service, the Secretary must give the applicant a certificate of approval stating the kind of approved child care service.

Item 138 recasts subsection 195(3) so as to require the Secretary to also state in the certificate of approval the day from which the approval operates. Under new subsection 195(4), the day from which an approval operates may be a day before the day the Secretary approves the service.

Section 196 of the FA Admin Act sets out the conditions for continued approval of a service. Item 139 inserts an additional condition for continued approval. A service must co-operate with a person exercising powers under the FA Admin Act to enter premises to inspect records or for an occupier of premises to provide an officer access to records and assistance.

Amendments relating to other matters

Section 221 of the FA admin Act enables the Secretary to delegate his powers under the family assistance law.

Item 140 clarifies the operation of subsection 221(3) by ensuring that it refers to the Secretary's power under subparagraph 168(1)(b)(i) (which deals with disclosure of information from the Secretary to an agency head) rather than the broader paragraph 168(1)(b). Subparagraph 168(1)(b)(ii) deals with the situation where a person consents to disclosure.

Section 224 of the FA Admin Act provides some general rules relating to the giving of a notice of decision. As currently worded, this provision only applies to a notice of decision affecting a person's entitlement to be paid family assistance. Item 141 extends the ambit of section 224 so that it also applies to a notice of a decision affecting a person's conditional eligibility for CCB by fee reduction and a notice of a decision affecting a weekly limit of hours, a CCB%, a schooling% or a rate under section 81 of the Family Assistance Act applicable to a person. A consequential amendment is also made to subsection 224(2).

Item 142 recasts paragraph 226(2)(b) so that the wording in the provision reflects the terminology used in the family assistance law. The substance of the provision remains unchanged.

Item 143 repeals sections 227 and 228 of the FA Admin Act. These provisions are relocated into Part 4 of the FA Admin Act as new sections 84A and 92A respectively.

Item 144 repeals subsection 235(5) of the FA Admin Act. This is a consequential amendment necessary because of the repeal of the regulation making powers in section 49 of the FA admin Act.