House of Representatives

Explanatory Memorandum

Circulated by authority of the Minister for Education the Honourable Julia Gillard MP

Schedule 5 - Other Measures

Summary

This Schedule contains a number of amendments to various provisions of the Family Assistance Act and Family Assistance Administration Act. These amendments relate to:

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Clarification of the provisions relating to the weekly limits of hours for the purposes of CCB. These amendments will ensure that there is alignment between CCTR provisions and CCB provisions. Also included in these measures is the ability to review child care tax rebate decisions automatically where there has been an application for review of a decision relating to CCB where the amount of CCB changes.

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Minor amendments of a technical character as a result of the CCMS Act.

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Publication of information relating to sanctions or suspensions of approved child care service's approval. These amendments give the Secretary a discretionary power to publicise information related to decisions to sanction or suspend a service for non-compliance with conditions for continued approval.

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Clarification of the allocation of places provisions so that these provisions only refer to the kind of approved child care service for which the Secretary allocates places.

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Replacing the obligation to provide receipts with an obligation for approved child care services to provide periodic statements to conditionally eligible individuals. The statement will contain information about the amount the service is required to pass on to the individual under section 219B, and any other information specified by the Secretary in a legislative instrument made for this purpose.

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Delegation of the Secretary's powers under Division 2 of Part 8C (infringement notices). This amendment ensures that the Secretary can delegate the powers under Division 2 of Part 8C to 'SES officers and acting SES officers.'

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Giving of notices under Part 8C (civil penalties) which will align notices given under Part 8C with the relevant deeming provisions in the Family Assistance Administration Act.

( a) CCTR eligibility

Background

This amendment clarifies the CCTR eligibility provisions to ensure that eligibility of an individual for CCTR for a week arises when the circumstances specified in Subdivision G of Division 4 of the Family Assistance Administration Act, in which the weekly limits of 50 hours, more than 50 hours or 24 hour care apply, are met in that week by the individual. It does not matter whether there was a CCB determination relating to hours in force under section 50H of the Family Assistance Administration Act in respect of the individual and the week with the effect that the weekly limits of 50 hours, more than 50 hours or 24 hour care applied in that week for CCB purposes.

These amendments commence on Royal Assent.

Explanation of the changes

Section 57 specifies the conditions of eligibility for CCTR for an individual and the child for a week.

Paragraph 57F(1)(c) operates to the effect that an individual is eligible for CCTR for a week if the relevant weekly limit of hours of care applies to the individual under Subdivision G of Division 4 of the Family Assistance Administration Act (which deals with limitations on eligibility for CCB relating to hours). The relevant limit of hours applicable to the individual for a week is 50 hours, more than 50 hours or 24 hour care.

Subsection 57F(2) provides that if a 24 hours limit applies to the individual in a week the conditions for CCTR for the week are not met.

Item 1 repeals subsection 57(2) and substitutes new subsection (2) which clarifies paragraph 57F(1)(c) by providing that the conditions for CCTR for a week are met even though the required limit of hours specified in paragraph 57F(1)(c) does not apply under a determination on force under section 50H of the Family Assistance Administration Act, if circumstances in which a higher weekly limit of hours applies were applicable to the individual in the week. For example, if an individual's weekly limit of hours determination under section 50H specified only 24 hours limit in a particular week, but the individual was working full time and therefore the 50 hour limit would apply for the week, the applicable limit of hours for CCTR purposes will be taken to be 50 hours, which will make the individual eligible for CCTR for that week (subject to other conditions being met).

The note inserted at the end of new subsection 57F(2) replicates the current subsection 57F(2).

( b) CCTR indexation

Background

Currently the CCB indexation is based on the December reference quarter whereas the CCTR indexation reference quarter is March. Given that the indexation dates of both payments are the same the indexation provisions for CCB and CCTR amounts need to be aligned.

These amendments align the indexation of the new CCTR limit, which is to occur on 1 July 2009, with indexation of the CCB amount by providing that the relevant reference quarter before indexation day is December and the relevant base quarter is the highest December quarter before the reference quarter but not earlier than December 2007.

These amendments commence on 1 July 2008.

Explanation of the changes

Item 5 amends table item 22 in subclause 3 of Schedule 4 (Indexation and adjustment amounts) relating to indexation of CCTR limit amount by substituting new item 22 specifying that the CCTR limit amount is indexed on 1 July each year, taking into account the December quarter before the indexation day as the reference quarter and making the base quarter the highest December quarter before the reference quarter but not earlier than December 2007 and applying the rounding base of $1.00.

( c) Limit of hours - variation determination

Background

Currently, the operation of the provisions relating to a variation of a determination of weekly limit of hours made under section 50H of the Family Assistance Administration Act for the purposes of CCB are not entirely clear. A change of the limit of hours occurs through variation of the determination made under Subdivisions U (sections 64A to 64D) or V (section 65D) of Division 4 of Part 3 of the Family Assistance Administration Act.

The two subdivisions apply to essentially the same situations; however, they produce different outcomes. A variation under Subdivision U to increase a limit of hours requires application from the individual and, in some cases, from the service providing care to the individual's child. There are no provisions in Subdivision U that would limit the time from which the variation may operate. Under a variation in Subdivision V (section 65D) if a claimant notifies of a change/event before the end of the following year or the Secretary did not become aware until after the end of the income year following the one in which the event occurred, the increase in the limit of hours is effected from the date of the occurrence of the event. If the event is notified later or not notified by the claimant the effect of the increase is limited to the beginning of the income year before the year in which the variation to increase the limit is made; the variation to decrease the limit is made with effect from the occurrence.

The amendments are made to ensure that a variation of determination of the weekly limit of hours made in particular circumstances has the same effect regardless of whether it is made under Subdivision U or V.

These amendments commence on Royal Assent.

Explanation of the changes

Item 7 inserts new section 64DA, which prevents the Secretary from varying a determination of weekly limit of hours under Subdivision U if the application for variation was made after the end of the income year following the one which provided the cause for the variation, the result of the variation would increase the individual's weekly limit of hours and the variation would apply to a period that ended before the start of the income year before the one in which the application was made.

This amendment ensures that the effect of the variation of the limit of hours relating to a retrospective period does not conflict with the effect of variation made in the same circumstances under section 65D.

Section 64E deals with the elements of notice of variation made under Subdivision U. Paragraph 64E(1)(c ) requires that the notice states the effect of the variation. Item 8 substitutes new subparagraphs 64E(1)(c)(i) and (ii). New subparagraphs 64E(1)(c)(i) provides that the notice must state the day from which the variation takes effect (dealt with in new section 64EA inserted by item 10 ). New subparagraph 64E(1)(c)(ii) provides that if the variation is to have effect for a period then the notice must state the period of one or more weeks that the variation is to have effect.

Item 9 makes a stylistic amendment to paragraphs 64E(1)(iii) and (iv) in keeping with the current drafting style.

Item 10 inserts new section 64EA, which specifies when a variation of weekly limit of hours takes effect. Generally, the date of effect of a variation of a weekly limit of hours is the start of the week in which circumstances exist that would make an individual eligible for a 50 hour weekly limit, more than 50 hour weekly limit, or a 24 hour care limit. The exception to this rule applies where the application to vary the weekly limit of hours is made after the end of the income year following the one in which such circumstance first applies and the variation would have the effect of increasing the weekly limit of hours. In these circumstances, the variation can only have effect from the start of the income year before the one in which the application was made. This is in line with the date of effect of beneficial variations applicable to variations made under section 65D.

( d) CCTR inalienability

Background

Currently, the payment of CCTR is the only family assistance payment that is not a protected payment.

These amendments align the treatment of CCTR with that of other family assistance payments making it absolutely inalienable, whether by way of or in consequence of sale, assignment, charge, execution, bankruptcy or otherwise.

These amendments commence on Royal Assent.

Explanation of the changes

Item 11 amends subsection 66(1), which deals with protection of payments, by inserting new paragraph 66(1)(ea) referring to CCTR.

( e) Publication of information relating to sanction or suspension of approved child care service's approval

Background

Section 196 of the Family Assistance Administration Act specifies conditions a child care service approved for the purposes of family assistance law must comply with to continue to be so approved. These conditions fall in 3 broad categories: compliance with the eligibility requirements (subsection 196(1)), compliance with family assistance law (subsection 196(2)), and compliance with child care laws of the Commonwealth or of the State or Territory (subsection 196(3)).

Failure to comply with the conditions for continued approval may result in a sanction being imposed on the service by the Secretary under section 200 of the Family Assistance Administration Act. The Secretary may:

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vary the conditions for the continued approval of the service imposed under subsection 199(2);

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impose additional conditions for the continued approval of the service under subsection 199(2);

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reduce the number of child care places allocated to the service under section 207;

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suspend the service's approval;

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cancel the service's approval

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withhold the payment of enrolment advances to the service under section 219RA;

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require the remittal to the Secretary of enrolment advances paid to the service under section 219RA;

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suspend, for a maximum of 3 weeks, payment under section 219Q or subsection 219QA(2) in respect of fee reduction.

The process of sanctioning requires that a notice of the intention to sanction and an opportunity to make a submission be given to the service.

Furthermore, subsection 201A(1) of the Family Assistance Administration Act provides that the Secretary may, by notice given to an approved child care service, immediately suspend the approval of the service if the Secretary reasonably believes that:

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the service is not complying with all applicable requirements imposed by a law of the Commonwealth, or of the State or Territory in which the service is situated, relating to child care; or

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there is an imminent threat to the health or safety of a child, or children, because of the care provided by the service to the child or children; or

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due to urgent circumstances, it is no longer appropriate for the service to provide child care.

Amendments will authorise the Secretary to publicise details about the decisions under section 200 to sanction an approved child care service for non-compliance with conditions for continued approval and about decisions to suspend a service's approval under subsection 201A(1) (e.g. by uploading the information on the website maintained by the Department). It is anticipated that the publication will act to improve the services' compliance with their obligations as approved child care services.

These amendments commence on Royal Assent

Explanation of the changes

Amendments to the Family Assistance Administration Act

Part 1 - Amendments

Item 20 inserts a new section 201B in Division 1 Part 8 dealing with the approval of child care services, which provides the Secretary with the discretionary power to publicise information about the Secretary's decision to sanction an approved child care service under paragraphs 200(1)(a) to (h) or to suspend the approval of a service under subsection 201A(1).

New subsection 201B(2) provides examples of the information which the Secretary may publicise. The information may include the name and address of the service, the name of the operator of the service. In the context of a sanction the information may also include the day when the sanction starts to have effect, each condition for the continued approval of the service that the service has not complied, or is not complying, with, and the day (if any) when the sanction ceases to have effect. In the context of a immediate suspension the information may also include the day the suspension starts to have effect, the grounds for the suspension and the day (if any) when the suspension ceases to have effect.

It is intended that the Secretary will decide whether and what information about a service should be published on a case by case basis, with the level of detail to be determined by the Secretary, taking into account considerations such as seriousness of the breach, its persistence, the service's past record of compliance with its responsibilities and the consequences of the Secretary's decision for parties such as parents and children.

A decision to sanction made under section 200 or a decision to suspend a service's approval under subsection 201A(1) are reviewable by the Secretary on application made by the affected person (within 28 days of the notification of the sanction) or by the Administrative Appeals Tribunal (within 28 days of the notification of the review decision). As a matter of administration it is intended that the Secretary will not publish the information until after the appeal period for the sanction decision has lapsed. The Secretary's decision to publicise the information will not be reviewable on an application by the affected person. Item 12 makes amendments to this effect. It inserts a new paragraph 108(2)(fa) which adds a decision under 201B to publicise sanction or suspension information to exceptions to the rule in subsection 108(1) that decisions made by an officer under family assistance law must be reviewed on application under section 109A. However the Secretary will be able to review the decision to publicise, on the Secretary's own initiative.

( f) CCTR review

Background

Part 5 of the Family Assistance Administration Act contains provisions relating to review of decisions under the family assistance law. The Secretary may review a decision on his or her own initiative (under section 105) at any time after a determination is made and no time limits apply. The Secretary may also review a decision where a person affected by a decision applies to the Secretary (under section 109A) no later than 52 weeks after the applicant was notified of the decision concerned. Where there has been a review by the Secretary and the person affected is not satisfied with that decision the person may apply to the Social Security Appeals Tribunal (SSAT) (under section 111) no later than 13 weeks after the person is notified of that decision. A decision made by the SSAT may be reviewed by the Administrative Appeals Tribunal (AAT) (under section 142) on an application made no later than 60 days after the decision of the SSAT.

The decisions which can be reviewed include those relating to CCB determinations and CCTR determinations. The nature of the CCTR payment is such that the amount of CCTR entitlement for an income year depends on the amount of CCB entitlement for the year. Therefore, if a CCB entitlement determination needs to be reviewed to either increase or decrease the CCB entitlement, the CCTR entitlement determination also needs to be reviewed to either decrease or increase the CCTR entitlement. There is no flow-on effect to CCB from review of the CCTR entitlement.

Currently, both the CCB entitlement determination and the CCTR entitlement determination may be reviewed, but in separate review actions. Given that the legislation places restrictions on the beneficial effect of review decisions when the review occurs later than within the prescribed time limits, the current situation when review of the CCB and CCTR determinations may occur at a different time (e.g. CCB is reviewed at the end of the prescribed time limit and CCTR is then reviewed after the time limit), may, in some cases, lead to a detriment to the individual. An adverse decision in a separate CCTR review subsequent to the CCB review may create the recovery of a CCTR debt more difficult than it would have been if both reviews were undertaken at the same time.

These amendments ensure that when an application is made for a review of a CCB entitlement determination, which affects the person's CCTR entitlement, the CCTR entitlement determination for the same income year is also reviewed, at the same time.

These amendments commence on Royal Assent.

Explanation of the changes

Item 16 inserts a new Division 5 into Part 5 (review of decisions) providing for the automatic review of child care tax rebate decisions.

New Division 5 - Automatic review of child care tax rebate decisions

New section 152A - Automatic review of child care tax rebate decisions

New section 152A specifies when an automatic review of a CCTR decision is to occur.

New subsection 152A(1) provides that new section 152A applies when three conditions are met: an application for review of a CCB entitlement decision for one or more sessions of care provided by an approved child care service to a child during an income year has been made under the relevant provisions - sections 109A (internal review), 111 (SSAT review) and 142 (AAT review); an amount of CCTR is applicable for the person and child for the income year; and the result of the review affects the amount of CCB payable in respect of a session or sessions of care.

New subsection 152A(2) provides that the Act has effect as if the application for the CCB review also included an application for review of any determination of entitlement for CCTR.

The amendment ensures that when an application is made for a review of a CCB entitlement determination, the CCTR entitlement determination for the same income year is also reviewed, but only if the CCB review results in an increase or decrease of the CCB amount. If the review of the CCB entitlement does not result in a change to the CCB amount, the automatic review of the CCTR entitlement is not required because the CCTR entitlement amount remains unaffected.

Section 109A provides that a person affected by a decision may apply to the Secretary for review of that decision. Item 13 inserts a note at the end of subsection 109A(1) to inform the reader that there will be an automatic review of a person's CCTR entitlement for an income year whenever an application is made under this section to review a person's CCB entitlement for an income year and that review affects the person's CCTR entitlement for the income year. For further information the reader is directed to new Division 5.

Items 14 and 15 insert similar notes to that inserted by item 13 , at the end of subsection 111(1) dealing with an application for review of a decision by the Social Security Appeals Tribunal and subsection 142(1) dealing with an application for review of a decision by the Administrative Appeals Tribunal.

( g) Clarification of the allocation of places provisions

Background

Certain kinds of approved child care services are restricted in the provision of child care to the number of places allocated to the service by the Secretary under section 207 of the Family Assistance Administration Act.

The allocation is made in accordance with a determination under section 206. The current determination Child Care Benefit ( Allocation of Child Care Places ) Determination 2000 (the Allocation Determination), specifies only two kinds of services to which allocation is made: in-home care service and occasional care service. The allocation of places to a service depends on the availability of places. The total number of places is limited.

Under paragraph 195(1)(d) of the Family Assistance Administration Act when an application for approval is made relating to a child care service of the kind to which allocation of places is made under the Allocation Determination, such a service cannot be approved unless there are places available for allocation to the service (allocation of places is a pre-requisite for the approval of such a service). Concerns have been raised that paragraph 195(1)(d) may operate to require allocation of places as a pre-requisite to approval of any kind of child care service.

Amendments are made to clarify the legislation to ensure that only if a service is of a kind to which the Allocation Determination applies, the condition for approval in paragraph 195(1)(d) applies.

These amendments commence on Royal Assent.

Explanation of the changes

Item 17 amends paragraph 195(1)(d) to clarify that the requirement that the places would be allocated to the service applies only to the service covered by a determination in force under section 206.

Item 18 amends section 197 which makes it a condition for continued approval of a service that the service does not exceed the number of allocated places. The amendment ensures that this condition applies only to the service covered by a determination in force under section 206.

Section 206 authorises the Minister to determine guidelines for allocation of child care places. Item 19 makes a minor consequential amendment of stylistic nature to paragraph 200(1)(c) informing the reader that these guidelines do not apply to all kinds of approved child care services.

Item 21 adds a note at the end of section 206 informing the reader that these guidelines refer to one or more classes of approved child care services. The reader's attention is drawn to section 13(3) of the Legislative Instruments Act 2003 , which provides that the rule-maker, when making a legislative instrument about a matter or thing, may refer to a class or classes of these matters or things.

Section 207 provides that the allocation of places must be made by the Secretary in accordance with the determination (if any) under section 206. Item 22 amends subsection 207(1) to clarify that the allocation requirement applies only to child care services of the kind covered by a determination under section 206.

( h) Obligation to provide statements

Background

Section 219E was introduced by Schedule 1 of the CCMS Act and commenced on 1 July 2007, however it only applies to an approved child care service following its application day as determined under item 91 of the CCMS Act.

Subsection 219E(1) of the Family Assistance Administration Act, as it applies after a service's application day, provides that a service must issue a receipt for a fee charged by the service for an enrolment which has been confirmed under section 219AE. The receipt must be issued at the time the fee is paid and must state the amount paid, the amount of fee reductions that the service is required to pass on to the individual under sections 219B and 219BA and any other information the Secretary specifies in the rules made under subsection (2). A penalty of 60 penalty units applies for contravention of the requirement. It is an offence of strict liability.

In certain circumstances, however, subsection 219E(1) will not operate to the effect of showing the claimant the amount of fee reductions that the service is required to pass on to the individual under sections 219B. This is because a service can charge a conditionally eligible individual before the calculation by the Secretary of their fee reductions under subsection 50Z(1) occurs, and the issuing of a receipt is triggered by the payment of fees when there may not be any fee reductions at the time of the payment. When a service is notified by the Secretary of the fee reduction calculation and 'passes on' the fee reductions under subsection 219B(1), this may not result in an additional payment to trigger the obligation to provide a receipt. In this situation, the service would not give a receipt and the individual would not know how much fee reductions the Secretary calculated.

This result does not accord with the policy intention that a conditionally eligible individual is made aware of the amount of fee reductions the service is required to pass on to him or her under section 219B.

These amendments commence on 1 January 2009.

Explanation of the changes

Section 219E(1) provides that a service must issue a receipt for a fee charged by the service for an enrolment which has been confirmed under section 219AE. Item 23 repeals section 219E and substitutes a new section 219E. New subsection 219E(1), creates an obligation for approved child care services to provide an individual in respect of whom a determination of conditionally eligibility is in force under section 50F of the Family Assistance Administration Act with a statement specifying the information in new subsection 219E(5) when sessions of care are provided to the child and the service is required to pass on an amount under section 219B. New subsection 219E(1) is a civil penalty provision.

New subsection 219E(2) makes it an offence for approved child care services not to provide to an individual in respect of whom a determination of conditionally eligibility is in force under section 50F of the Family Assistance Administration Act with a statement specifying the information in new subsection 219E(5) when sessions of care are provided to the child and the service is required to pass on an amount under section 219B carries a penalty of 60 penalty units.

The current subsection 219E makes it an offence for a service not to issue a receipt. The offence is of strict liability and carries a penalty of 60 penalty units. New subsection 219E(3) makes the offence in new subsection 219E(2) an offence of strict liability. The rationale for strict liability is the same as for the current offence relating to receipts.

New subsection 219E(4) defines the statement period as being a four week period starting on the latest Monday of the service's application day, 1 January 2009, or when a determination under section 50F comes into force in relation to an individual.

New subsection 219E(5) provides matters that are required to be set out in the statement, including the statement period to which the statement applies, the full fees that would have been payable by the individual but for fee reductions, the amount the service is required to pass on to the individual under section 219B as fee reductions, and any other information specified by the Secretary in a legislative instrument made for under new subsection 219E(6).

New subsection 219E(6) authorises the Secretary to make rules dealing with such matters as how and to whom the statement must be given, providing different statement periods for particular services or classed of services, and any other information that must be given in the statement in addition to the information in new subsection 219E(5).

( i) Delegation of the Secretary's powers under Division 2 of Part 8C (infringement notices )

Background

Division 2 of Part 8C of the Family Assistance Administration Act concerns matters relevant to the Secretary giving infringement notices to persons who have contravened a civil penalty provision. A 'civil penalty provision' is defined in subsection 3(1) of the Family Assistance Administration Act by reference to specific provisions in the Family Assistance Administration Act. Infringement notices may be given by the Secretary or an authorised person appointed by the Secretary under section 219TSO, for the purposes of Division 2 of Part 8C.

Currently, subsection 221(4) prevents the Secretary from delegating any of the Secretary's powers under Division 2 of Part 8C, including the power to give the notice or appoint an authorised person.

The prohibition imposed on the Secretary by the operation of subsection 221(4) has been found to be administratively impractical.

This amendment commences on Royal Assent.

Explanation of the changes

Item 24 amends subsection 221(4) to allow the Secretary to delegate the Secretary's powers under Division 2 of Part 8C to an "SES employee or acting SES employee." 'SES employee' and 'acting SES employee' are defined in section 17AA of the Acts Interpretation Act 1901 as having the same meaning as defined in the Public Service Act 1999 , unless a contrary intention appears.

( j) Giving of notices under Part 8C (civil penalties )

Background

Part 8C of the Family Assistance Administration Act, dealing with civil penalties authorises the giving of two types of notices relevant to infringement notices (under section 219TSI) and suspensions of approved child care service's approval (under section 219TSQ).

Section 224A of the Family Assistance Administration Act is a deeming provision relevant to the giving of notices under Part 8 (Approval of child care services and registered carers). It makes a notice of a decision under Part 8 left at the address of the place of business of a child care service last known to the Secretary, or sent by prepaid post to the address of a child care service last known to the Secretary, or sent by email to the last known email address of a child care service, to be taken as given for the purposes of the family assistance law to the service.

Section 224A also provides that if a notice of a decision of an officer under Part 8 is given to a service by properly addressing, prepaying and posting the document as a letter, the notice is taken to have been given to the service at the time at which the notice would been delivered in the ordinary course of the post, unless contrary is proved.

Amendments are made to ensure that section 224A also applies to notices given under Part 8C.

These amendments commence on Royal Assent.

Explanation of the changes

Item 25 inserts into section 224A a reference to Part 8C with the result that section 224A will apply to Part 8C notices.

Item 26 adds a new subsection 224A(4) which specifies that, a notice of an officer under Part 8C to which section 224A applies, is an infringement notice under section 219TSI or a notice of suspension under section 219TSQ.

( k) Other amendments

Background

Items 2, 3, 4 and 6 make minor amendments to the Family Assistance Act and the Family Assistance Administration Act to correct various expressions and omissions.

These amendments commence on Royal Assent.

Explanation of the changes

Section 73 of the Family Assistance Act deals with the rate of fee reductions or the rate of CCB by fee reduction. Subsection 73(1) refers to an approved child care service calculating the rate of fee reduction as required under section 219A of the Family Assistance Administration Act. However, as a result of the amendments made by the Family Assistance Legislation Amendment ( Child Care Management System and Other Measures ) Act 2007 , it is the Secretary who is required to calculate this rate under section 50ZA of the Family Assistance Administration Act. Item 2 amends paragraph 73(1)(a) to remove the reference to the service from this paragraph.

Section 84A of the Family Assistance Act provides for the method of calculation of the amount of CCTR for an income year where there is a determination of entitlement for CCTR. Section 84A currently refers to a determination of entitlement for CCTR made under section 64EA (where the individual is eligible for CCB by fee reduction) or 64EB (where the individual is eligible for CCB for a past period). However, section 84A does not contain a reference to section 65EC of the Family Assistance Administration Act under which a replacement determination of entitlement to CCTR is made where the original determination did not include all periods of CCTR entitlement in the same income year. Item 3 corrects this omission and inserts the reference to section 65EC in section 84A.

Section 84B of the Family Assistance Act sets out the rules relating to working out the amount of 'approved child care fees' for which an individual is liable relevant to the calculation of the individual's CCTR for that week. Subsection 84B(3) specifies in this regard that in the situation where the child care fees in the week were reduced under Division 1 of Part 8A of the Family Assistance Administration Act (that is by CCB fee reduction amount), it is the unreduced amount that counts. The reference in this subsection to reduction of fees under the specified Division is incorrect due to the amendments made by the Family Assistance Legislation Amendment ( Child Care Management System and Other Measures ) Act 2007 , as under this Division the service has the obligation to 'pass on' the amount of fee reductions which are calculated by the Secretary, rather than to reduce fees the service charges.. Item 4 amends subsection 83B(3) to take this change into account.

Section 50 of the Family Assistance Administration Act deals with the requirement of the Secretary to make determinations when an individual claims CCB by fee reduction. Subsection 50(4) provides that the service uses these determinations as a basis for reducing a claimant's fees for sessions of care provided in an income year in respect of which a determination of conditional eligibility is in force. However, as a result of the amendments made by the Family Assistance Legislation Amendment ( Child Care Management System and Other Measures ) Act 2007 , it is the Secretary who is required to calculate this rate under section 50ZA of the Family Assistance Administration Act. Item 6 make amendment to correct the explanation in subsection 50(4).

Part 2 - Application

Item 27 provides for the application of the amendments made by items 2, 4 and 6 that correct various expressions to align the language of these provisions with the amendments made by the Family Assistance Legislation Amendment ( Child Care Management System and Other Measures ) Act 2007 (CCMS Act). These amendments apply to sessions of care provided by an approved child care to a child during a week falling wholly after the service's application day determined in item 91 of the CCMS Act. These amendments commence on Royal Assent.

Item 28 provides for application of the amendment made by item 3 , which amends the rate calculator for CCTR to ensure it applies to replacement decisions. The amendment applies to care provided on or after 1 July 2006.

Item 29 provides for the application of amendments made by items 7 to 10 , which deals with the variation to the limit of hours. These amendments apply to the application for variations made after the commencement of this item. This amendment commences on Royal Assent.

Item 30 provides for the application of amendments made by items 12 and 20 dealing with decisions to publicise sanctions and immediate suspension of a service's approval. These amendments apply to decisions made after the commencement of these amendments, irrespective of whether the non-compliance with the conditions of continued approval or grounds for the suspension occurred before or after the commencement of these amendments. These amendments commence on Royal Assent.

Item 31 provides for the application of the amendments made by items 13, 14, 15 and 16 dealing with automatic review of CCTR determination of entitlement. These amendments apply to the decisions made after the commencement of these items. These amendments commence on Royal Assent.