Explanatory Memorandum
(Circulated by authority of the Minister for Family and Community Services, Senator the Hon Kay Patterson)Schedule 1 - Amendments relating to threshold for receiving child care benefit
Summary
The amendments contained in this Schedule increase from 20 to 24 hours per week the threshold weekly limit of hours of care provided by an approved child care service to a child, for which CCB may be paid without the need for the claimant and the claimant's partner (if any) to satisfy the work/training/study test.
These amendments apply to CCB claimed as CCB by fee reduction, or as a lump sum, for care provided by an approved child care service.
Background
Currently, if a claimant or the claimant's partner do not satisfy the work/training/study test, CCB may be paid to the claimant for up to 20 hours of child care provided in a week to the claimant's child by an approved child care service.
Explanation of changes
Amendments to the Family Assistance Act
Items 1 - 8 replace various references to '20' hours in the Family Assistance Act with references to '24' hours to give effect to the increase in the weekly hours threshold from 20 to 24 hours.
Item 1 amends paragraph 53(1)(a) by replacing the reference to 20 hours with a reference to 24 hours. Subsection 53(1) sets out the various weekly limits of hours applicable to a fee reduction claimant.
Item 2 amends paragraph 53(2)(a) by replacing the reference to 20 hours with a reference to 24 hours. Subsection 53(2) sets out the various weekly limits of hours applicable to a past period claimant.
Item 3 amends subsection 53(3) by replacing the reference to 20 hours with one referring to 24 hours. Subsection 53(3) currently provides that a limit of 20 hours applies as the default weekly limit of hours to a claimant if:
- (a)
- in the case of a fee reduction claimant - a limit of 50 hours, a limit of more than 50 hours or a 24 hour care limit does not apply in respect of the week; and
- (b)
- in the case of a past period claimant - if a limit of 50 hours does not apply in respect of the week.
Item 4 amends subsection 54(8) which currently provides that a limit of 50 hours applies to a fee reduction claimant who is an individual if the Secretary considers that the child needs more than 20, up to a maximum of 50 hours care in a week because of exceptional circumstances. This item replaces the reference to "20" hours with "24" hours.
Item 5 amends paragraph 54(9)(b) by replacing the reference to 20 hours with one referring to 24 hours. Subsection 54(9) is similar to subsection 54(8) except that it applies where the fee reduction claimant is an approved child care service.
Item 6 amends subsection 54(10) that currently applies in circumstances where an approved child care service certifies that, for a specified period, the child needs or needed more than 20, but not more than hours of care in a week because the child is or has been at risk of serious abuse or neglect. This item replaces the reference to 20 hours with one referring to 24 hours.
Item 7 replaces the reference in paragraph 54(12)(b) to "20" hours with a reference to "24" hours. Subsection 54(12) sets out circumstances where a limit of 50 hours applies in the week to a fee reduction claimant if the Secretary considers that the child is at risk.
Item 8 amends the reference to "20" hours in paragraph 57A(1)(a) by replacing it with a reference to "24" hours. Subsection 57A(1) provides that the Minister must determine rules relating to how to work out the hours in sessions of care provided by an approved child care service to a child in a week that are to count towards the various weekly limits of hours.
Amendments of the Family Assistance Administration Act
Items 9 - 15 replace various references to "20" hours in the Family Assistance Administration Act with references to "24" hours to give effect to the increase in the weekly hours threshold from 20 to 24 hours.
Item 9 amends paragraph 50H(3)(b) by replacing the reference to "20" hours with a reference to "24" hours. Section 50H requires the Secretary to determine the weekly limit of hours where a fee reduction claimant has a determination under section 50F that the claimant is conditionally eligible for CCB by fee reduction.
Item 10 amends subsection 54C(1) by replacing the reference to "20" hours with a reference to "24" hours. Subsection 54C(1) currently provides that, if the claimant is eligible under section 47 of the Family Assistance Act (an approved child care service is eligible for CCB by fee reduction for care provided to a child at risk), the Secretary is taken to have made a determination of a weekly limit of 20 hours applicable to the service in respect of the child.
Item 11 amends paragraph 56C(3)(b) by replacing the reference to 20 hours with a reference to 24 hours. Subsection 56C(3) currently applies in circumstances where a weekly limit of more than 20 hours is in force in respect of a fee reduction claimant who is an individual. This subsection imposes an obligation on the claimant to notify the Secretary in a manner approved by 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'.
Item 12 amends paragraph 56D(1)(c) by replacing the reference to "20" hours with a reference to "24" hours. Subsection 56D(1) is similar to subsection 56C(3) except that it applies in circumstances where a determination of a weekly limit of more than 20 hours is in force in respect of a fee reduction claimant who is an approved child care service.
Item 13 amends subsection 59F(1) by replacing the reference to "20" hours with a reference to "24" hours. Subsection 59F(1) applies in circumstances where the Secretary has sent out a data verification form under section 57F to an individual who is conditionally eligible for CCB by fee reduction, whose limit of hours determined under section 50H is 50 hours and who did not provide information requested in the data verification form. Currently, subsection 59F(1) gives the Secretary discretion to vary the determination of a weekly limit of hours to one with a limit of 20 hours.
Item 14 amends subsection 64D(2) by replacing the reference to "20" hours with a reference to "24" hours. Consequential amendments are also made to the heading to section 64D and the heading to subsection 64D(2). Section 64D applies to a fee reduction claimant. Currently, the Secretary has discretion to vary the weekly limit of hours determination so that a limit of 20 hours applies in a week if a limit of 50 hours, more than 50 hours or a 24 hour care limit does not apply in the week.
Item 15 amends paragraph 219B(3)(a) by replacing the reference to "20" hours with a reference to "24" hours. Section 219B imposes an obligation on an approved child care service to reduce the fees of individuals when the approved child care service is eligible for CCB (when a child is at risk).
Item 16 is a transitional provision that addresses the situation where a 20 hour limit applies to a claimant who is an individual or an approved child care service immediately before the new rules start to apply on and from 3 July 2006.
The effect of new subitem 16(1) is to convert the existing 20 hours determination, whether the claimant is an individual or a child care service, into a 24 hours determination, on and from 3 July 2006.
If a determination of the limit of hours under subsection 50H(1) of the Family Assistance Administration Act is in force, to which new subitem (1) applies, new subitem 16(2) requires the Secretary to give notice to the individual and to the approved child care service or services providing care to the child.
New subitem 16(3) provides that the notice must state that, on and from the start of the first week commencing after 1 July 2006 (3 July 2006), the weekly limit of hours applicable to the claimant and the child is 24 hours.
New subitem 16(4) clarifies that the failure to send the notice referred to in subitem 16(2) or include the information specified by subitem 16(3) or both does not invalidate the operation of subitem 16(1).
New subitem 16(5) ensures that the necessary obligation is imposed upon the approved child care service to act on the notice in the same way as if it were a notice of a kind referred to in column 1 of table item 6 of the table in subsection 219A(2) of the Family Assistance Administration Act (the obligation being to apply the new limit of hours to the calculation of CCB).
Item 17 provides that the amendments made by the Schedule apply to sessions of care provided during the first week commencing after 1 July 2006 (these sessions would start in the week commencing Monday 3 July 2006) or during subsequent weeks.