Explanatory Memorandum
Circulated by authority of the Minister for Employment Participation and Childcare, the Honourable Kate Ellis MPSchedule 2 - Amendments to be made if the Family Assistance and Other Legislation Amendment
Summary
This Schedule makes amendments to the Family Assistance Administration Act, the Child Care and Other Measures Act and the Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007 to ensure that after commencement of the Child Care and Other Measures Act both the amendments made by Schedule 1 and by the Child Care and Other Measures Act operate as intended.
Background
The Child Care and Other Measures Act inserts (or substitutes) new provisions in the Family Assistance Administration Act that require amendments to ensure that they operate also for the purposes of CCR payments for a week ( Items 1, 12 and 15 refer).
Some CCR payment provisions are based on CCB payment provisions. As these CCB payment provisions are amended by the Child Care and Other Measures Act, amendments are required to the corresponding CCR provisions ( Items 2, 3, 6, 7, 9, 10 and 11 refer).
As a result of amendments made by Schedule 1, some of the amendments made by the Child Care and Other Measures Act require further amendments to ensure their continued operation as intended ( Items 4 and 5 refer).
Some CCR provisions need amendments to reflect the amendments made by the Child Care and Other Measures Act ( Item 8 refers).
Explanation of the changes
Part 1 - Amendment of the A New Tax System (Family Assistance) (Administration) Act 1999
These amendments commence immediately after the commencement of Part 1 of Schedule 1 to the Child Care and Other Measures Act (the day after this Part receives Royal Assent).
Item 1 - Subsection 3(1) (after paragraph (a) of the definition of child care service payment)
Item 1 of Schedule 1 to the Child Care and Other Measures Act inserts a definition of child care service payment in subsection 3(1) of the Family Assistance Administration Act. Paragraphs (a) to (e) of the definition specify the payments included in the definition. Item 1 amends the definition by inserting new paragraph (aa) to include a payment of CCR for a week under new section 219QC or subsection 219QD(2) inserted by Item 71 .
Items 2 and 3 - Subsection 65EAAE(2) and Subsection 65EAAE(3)
New subsection 65EAAE(2) (inserted by Item 13 of Schedule 1) relating to notices of revised calculation of a CCR amount for a week is based on section 50ZA of the Family Assistance Administration Act relating to notices of revised calculation of CCB fee reductions. Subsections 50ZA(2) and 50ZA(3) are amended by Items 1 and 2 of Schedule 5 to the Child Care and Other Measures Act.
Items 2 and 3 therefore amend in the same way the corresponding subsections 65EAAE(2) and 65EAAE(3).
Items 4 and 5 - Paragraph 108(2)(daaa) and After paragraph 108(2)(db)
Subsection 108(2) (as amended by Item 40 of Schedule 1) rearranges, among other things, the order of paragraphs in this subsection, which specifies the decisions that may and may not be reviewed (internal review on application). Item 19 of Schedule 1 to the Child Care and Other Measures Act inserts paragraph (daaa) into this subsection, inconsistent with the new order of the paragraphs in this subsection. Items 4 and 5 repeal paragraph (daaa) and reinsert the content of that paragraph as new paragraph (dba).
Items 6 and 7 - Subsection 219EA(2) and Subsection 219EA(5)
New section 219EA (inserted by Item 62 of Schedule 1) relating to an approved child care service's obligation to pass on weekly child care rebate is based on section 219B of the Family Assistance Administration Act relating to an approved child care service's obligation to pass on CCB fee reductions. Subsections 219B(2) and 219B(3) are amended by Items 12 and 13 of Schedule 5 to the Child Care and Other Measures Act.
Items 6 and 7 therefore amend in the same way the corresponding subsections 219AE(2) and 219EA(5).
Item 8 - Paragraph 219QC(3)(d)
New subsection 219QC(3) (inserted by Item 71 of Schedule 1) specifies provisions of the Family Assistance Administration Act affecting the amount of CCR payment for a week to be made to an approved child care service under new section 219QC, including section 219RC, which provides for a set off, against a weekly CCR amount, in the situation which is described as 'where enrolment ceases'.
Section 219RC is amended by Item 30 of Schedule 1 to the Child Care and Other Measures Act with the effect that the set off under this section occurs also when the operator of an approved child care service notifies cessation of operation. Item 8 therefore amends the description of section 219RC in paragraph 219QC(3)(d) to reflect the extended scope of this section.
Items 9, 10 and 11 - Subsection 219QD(1), Subsections 219QD(2) and Subsection 219QD(3)
New section 219QD (inserted by Item 71 of Schedule 1) relating to payments and set offs where recalculation results in reduced weekly child care rebate is based on section 219QA of the Family Assistance Administration Act relating to payments and set offs where recalculation results in reduced CCB fee reduction.
Subsections 219QA(1) and 219QA(2) are amended by Items 18 and 19, respectively, of Schedule 5 to the Child Care and Other Measures Act. Items 9 and 10 therefore amend in the same way the corresponding subsections 219QD(1) and 219QD(2).
Subsection 219QA(3) is amended by Item 23 of Schedule 1 to the Child Care and Other Measures Act. Item 11 therefore amends in the same way the corresponding subsections 219QD(1) and 219QD(2).
Item 12 - Subparagraph 219RC(3)(b)(ii)
Item 30 of Schedule 1 to the Child Care and Other Measures Act amends section 219RC by inserting, among others, subsection 291RC(3) providing for a set off of enrolment advances when the operator of an approved child care service notifies cessation of operation. The advances to be set off are the ones that were either paid to the service under section 219RA or would have been paid but for a set off under the provisions specified in paragraph 219RC(3)(b)(ii).
Item 12 amends paragraph 219RC(3)(b)(ii) to include a reference to new section 219QD (inserted by Item 71 ) which provides for a set off of a CCR amount for a week (paid to an approved child care service) against enrolment advance to be paid to the service.
Item 13 - Application
Subitem 13(1 ) provides that amendments made by Items 2, 3, 6, 7, 9 and 10 of this Schedule apply in relation to recalculation done under new section 65EAAD of the Family Assistance Administration Act (inserted by Item 13 of Schedule 1) on or after the commencement of those items in respect of weeks beginning before, on or after that commencement.
Subitem 13(2 ) provides that the amendment made by Item 11 of this Schedule applies in relation to payments that are to be made on or after the commencement of that item.
Part 2 - Amendment of the Family Assistance and Other Legislation Amendment (Child Care and Other Measures) Act 2011
These amendments commence at the same time as Part 1 of Schedule 1 to the Child Care and Other Measures Act commences (the day after this Part receives the Royal Assent).
Family Assistance and Other Legislation Amendment (Child Care and Other Measures) Act 2011
Item 14 - Items 5 and 6 of Schedule 1
Items 22 and 24 of Schedule 1 make the same amendments to paragraph 66(2)(cb) and 66(2)(cc), respectively, as Items 5 and 6 of Schedule 1 to the Child Care and Other Measures Act, making the latter amendments obsolete. Item 14 therefore repeals Items 5 and 6 of Schedule 1 to the Child Care and Other Measures Act.
Part 3 - Other consequential amendments
These amendments commence at the same time as the amendments in Part 1 of Schedule 1.
Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007
Item 15 - After paragraph 97C(1)(b) of Schedule 1
Item 33 of Schedule 1 to the Child Care and Other Measures Act amends subitem 97C(1) of Schedule 1 to the Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007 . Paragraphs 97C(1)(a) to (d) specify the provisions of the Family Assistance Administration Act, which affect the payment of the amounts to be paid to an approved child care service under subitems 97(5) and 97A(5) of the Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007 .
Item 15 amends subitem 97C(1) further to insert new paragraph (ba) referring to new subsection 219QD(3) of the Family Assistance Administration Act (inserted by Item 71 of Schedule 1 and amended by Item 11 of Schedule 2). New subsection 219QD(3) provides for a set off of a CCR amount for a week (paid to an approved child care service) against one or more child care service payments, which include the payments made to approved child care services under subitems 97(5) and 97A(5) of the Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007 .
Schedule 3 - Amendments to be made if the Family Assistance and Other Legislation Amendment (Child Care and Other Measures) Act 2011 already passed
Summary
This Schedule makes amendments to the Family Assistance Administration Act and the Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007 to ensure that the amendments made for the purposes of CCR payments for a week, commencing after the commencement of the Child Care and Other Measures Act, operate as intended and in alignment with the legislation as amended by the Child Care and Other Measures Act.
Background
The Child Care and Other Measures Act inserts (or substitutes) new provisions in the Family Assistance Administration Act that require amendments to ensure that they operate also for the purposes of CCR payments for a week ( Items 1, 8 and 9 refer).
Some CCR payment provisions are based on CCB payment provisions. As these CCB payment provisions are amended by the Child Care and Other Measures Act, some of the corresponding CCR provisions need to be made in a form that reflects the changes to the CCB provisions ( Items 2, 4, 5, 6 and 7 refer).
Some CCR provisions need to be made in a form reflecting amendments made to these provisions by the Child Care and Other Measures Act ( Item 3 refers).
Explanation of the changes
These amendments commence on the day after Schedule 1 receives Royal Assent.
Item 1 - Subsection 3(1 ) ( after paragraph (a) of the definition of child care service payment )
Item 1 of Schedule 1 to the Child Care and Other Measures Act inserts a definition of child care service payment in subsection 3(1) of the Family Assistance Administration Act. Paragraphs 3(1)(a) to (e) specify the payments included in the definition.
Item 1 amends the definition by inserting new paragraph (aa) to include a payment of CCR for a week made under new section 219QC or subsection 219QD(2) (inserted by Item 71 ).
Item 2 - Before Subdivision AA of Division 4AA of Part 3
Item 13 of Schedule 1 inserts, in Division 4AA of Part 3 of the Family Assistance Administration Act, new Subdivision AAA (sections 65EAAAA, 65EAAAB and 65EAAAC) providing for election to have CCR paid in various ways and new Subdivision AAB (sections 65EAAA, 65EAAB, 65EAAC, 65EAAD, 65EAAE and 65EAAF) relating to weekly payments of child care rebate. Section 65EAAE is based on section 50ZA of the Family Assistance Administration Act. Section 50ZA is amended by Items 1 and 2 of Schedule 5 to the Child Care and Other Measures Act. To prevent the CCR amendments made by Item 13 of Schedule 1 commencing without taking into account the amendments to section 50ZA, the amendments made by Item 13 of Schedule 1 do not commence if Schedule 5 to the Child Care and Other Measures Act commences first (item 3 of the commencement table in section 3 of this Bill refers). Instead, Item 2 of Schedule 3 inserts new Subdivision AAA (the same in terms as the one in Schedule 1) and new Subdivision AAB, which includes an amended section 65EAAE mirroring the amendments to section 50ZA.
Item 3 - Paragraphs 108(2)(da) to (db)
Item 19 of Schedule 1 to the Child Care and Other Measures Act inserts paragraph (daaa) into subsection 108(2), which specifies the decisions that may and may not be reviewed (internal review on application) - to refer to a decision under subsection 219RA(1A).
Item 40 of Schedule 1 amends subsection 108(2) as in force before commencement of the amendment made by the Child Care and Other Measures Act, to rearrange, among other things, the order of paragraphs in this subsection. To prevent the CCR amendments made by Item 40 of Schedule 1 commencing without taking into account the amendments to subsection 108(2) made by the Child Care and Other Measures Act, the amendments made by Item 40 do not commence if Part 1 of Schedule 1 to the Child Care and Other Measures Act commences first (item 11 of the commencement table in section 3 of this Bill refers). Instead, Item 3 amends subsection 108(2) so as to preserve the intention of the amendments in Item 40 of Schedule 1 and in Item 19 of Schedule 1 to the Child Care and Other Measures Act.
Item 4 - After subparagraph 111(2)(a)(ix)
Item 43 of Schedule 1 inserts new paragraphs (xiva) and (xivb) into paragraph 111(2)(a) that specifies the provisions under which decisions are made relating to form and manner of claims, notices, etc. (exempt from review under section 111). A reference is made in new subparagraph 111(2)(a)(xivb) to new subsection 65EAAE(4) (inserted by Item 13 of Schedule 1) dealing with the form and manner of notices. Section 65EAAE inserted by Item 13 of Schedule 1 does not commence; instead, section 65EAAE inserted by Item 2 of Schedule 3 commences, in which the form and manner notices are dealt with in subsection 65EAAE(3). To ensure correct cross-referencing in the new paragraph 11(2)(a)(xivb), Item 43 also does not commence ( the commencement table, item 3, in section 3 of this Bill refers); instead, Item 4 of Schedule 3 inserts new subparagraphs 111(2)(a)(ixa) and (ixb) as originally intended but with the correct reference to subsection 65EAAE(3).
Item 5 - After section 219E
Item 62 of Schedule 1 inserts new sections 219EA and 219EB. New section 219EA, which deals with obligation to pass on weekly CCR, is based on section 219B which deals with obligation to pass on CCB fee reductions.
Items 12 and 13 of Schedule 5 to the Child Care and Other Measures Act amend section 219B. To ensure consistency between the corresponding CCB and CCR provisions, amendments made by Item 62 do not commence if Schedule 5 to the Child Care and Other Measures Act commences first (the commencement table, item 17, in section 3 of this Bill refers). Instead, Item 5 inserts section 219EA amended for consistency with the amendments made to section 219B, and section 219EB (the same as in Item 62 ).
Item 6 - After Division 2 of Part 8A
Item 71 of Schedule 1 inserts new sections 219QC, 219QD and 219QE relating to weekly payments of CCR to approved child care services. These sections are based on sections 219Q, 219QA and 219QB of the Family Assistance Administration Act relating to payments of CCB fee reductions to approved child care services.
Section 219Q is amended by item 22 of Schedule 1 to the Child Care and Other Measures Act, section 219QA is amended by items 18 and 19 of Schedule 5 to that Act and section 219QA is amended by item 23 of Schedule 1 to that Act.
To ensure consistency between the corresponding CCB and CCR provisions, amendments made by Item 71 of Schedule 1 do not commence if Schedule 5 to the Child Care and Other Measures Act commences first (the commencement table, item 21, in section 3 of this Bill refers). Instead, Item 6 inserts sections 219QC, 219QD and 219QE amended for consistency with the amendments made to sections 219Q and 219QA, and section 219QE (the same as in Item 71 ).
Item 7 - Paragraph 219RC(1)(b)
Item 74 of Schedule 1 amends paragraph 219RC(b). However, item 27 of Schedule 1 to the Child Care and Other Measures Act amends section 219RC to insert a reference to (1), therefore creating subsection 219RC(1). This makes the amendment in Item 74 not legally effective. To ensure that this amendment operates effectively after the commencement of the Child Care and Other Measures Act, Item 74 of Schedule 1 does not commence if Schedule 1 to the Child Care and Other Measures Act commences (the commencement table, item 23, in section 3 of this Bill refers); instead, Item 7 makes a properly described amendment for the same purpose.
Item 8 - Subparagraph 219RC(3)(b)(ii)
Item 30 of Schedule 1 to the Child Care and Other Measures Act amends section 219RC by inserting, among others, subsection 291RC(3) providing for a set off of enrolment advances when the operator of an approved child care service notifies cessation of operation. The advances to be set off are the ones that were either paid to the service under section 219RA or would have been paid but for a set off under the provisions specified in paragraph 219RC(3)(b)(ii).
Item 8 amends paragraph 219RC(3)(b)(ii) to include a reference to new section 219QD (inserted by Item 71 ) which provides for a set off of CCR amount for a week paid to an approved child care service against enrolment advance to be paid to the service.
Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007
Item 9 - After paragraph 97C(1)(b) of Schedule 1
Item 33 of Schedule 1 to the Child Care and Other Measures Act amends subitem 97C(1) of Schedule 1 to the Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007 ). Paragraphs 97C(1)(a) to (d) specify the provisions of the Family Assistance Administration Act, which affect the payment of the amounts to be paid to an approved child care service under subitems 97(5) and 97A(5) of the Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007 .
Item 9 amends subitem 97C(1) further to insert new paragraph (ba) referring to new subsection 219QD(3) of the Family Assistance Administration Act (inserted by Item 71 of Schedule 1 and amended by Item 11 of Schedule 2). New subsection 219QD(3) provides for a set off of a CCR amount for a week (paid to an approved child care service) against one or more child care service payments, which include the payments made to approved child care services under subitems 97(5) and 97A(5) of the Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007 .
Item 10 - Application
Item 10 provides for application of amendments made by Schedule 3 to income years beginning on or after 1 July 2011.