Families, Community Services and Indigenous Affairs Legislation Amendment (Child Care and Other 2007 Budget Measures) Act 2007 (113 of 2007)
Schedule 1 Amendments relating to child care benefit rate and child care tax rebate
Part 1 Amendments
A New Tax System (Family Assistance) Act 1999
6 After Division 4 of Part 4
Insert:
Division 4A - Child care tax rebate
84A Amount of the child care tax rebate
If a determination of entitlement for child care tax rebate under section 65EA or 65EB of the Family Assistance Administration Act is in force in respect of an income year (the rebate year ) in respect of an individual for child care provided by one or more approved child care services to a child during the year, the amount of the rebate which the individual is entitled to be paid in respect of the child for the year is worked out as follows:
Method statement
Step 1. Work out the total amount of the individual’s approved child care fees for the child in each base week for the individual and the child in the rebate year.
Step 2. Work out the total amount of the individual’s entitlement to child care benefit for the care for the child in each base week for the individual and the child in the rebate year.
Step 3. Work out the total amount of Jobs Education and Training (JET) Child Care fee assistance (if any) that the individual is eligible to receive for the child in each base week for the individual and the child in the rebate year.
Step 4. Work out the lesser of the following amounts (the child rebate ) for the child:
(a) the amount worked out using the formula:
(b) the child care tax rebate limit for the rebate year.
Step 5. The result is the amount of the individual’s child care tax rebate for the child for the rebate year.
84B Component of formula - approved child care fees
General rule - approved child care fees for a base week for an individual and a child
(1) The amount of an individual’s approved child care fees for a child in a base week for the individual and the child is the amount of fees for which:
(a) the individual; or
(b) the individual’s partner during the week;
is liable for care provided by an approved child care service or services for the child during the week. Subject to subsection (2), it does not matter whether the individual is entitled to child care benefit for all of that care.
Special rule if the week is also a base week for the individual’s partner for the child
(2) If the base week is also a base week for the individual’s partner and the child, the individual’s approved child care fees for the week do not include any fees that the individual’s partner was liable to pay for care by an approved child care service or services for the child in the week for which the individual is not entitled to child care benefit.
If fee reduction applies, count unreduced amount of fees
(3) If fees for child care by an approved child care service have been reduced under Division 1 of Part 8A of the Family Assistance Administration Act, then for the purposes of this section, a reference to the fees for which the individual, or the individual’s partner, is liable is taken to be a reference to the fees for which the individual, or the individual’s partner, would have been liable for the care if they had not been so reduced.
84C Component of formula - base week
A week is a base week for an individual for a child in a rebate year if:
(a) all or part of the week falls within the rebate year; and
(b) care is provided by one or more approved child care services to the child during the week; and
(c) either:
(i) a determination is made under section 51B of the Family Assistance Administration Act that the individual is entitled to be paid child care benefit by fee reduction for the care; or
(ii) a determination is made under section 52E of the Family Assistance Administration Act that the individual is entitled to be paid child care benefit for the care; and
(d) paragraph 57F(1)(c) (as affected by subsections 57F(2) and (3)) is satisfied for the week.
84D Component of formula - amount of the individual’s entitlement to child care benefit
The amount of an individual’s entitlement to child care benefit for the care of a child by one or more approved child care services in a base week for the individual and the child in a rebate year is:
(a) for an individual in respect of whom a determination of entitlement is made under section 51B of the Family Assistance Administration Act in respect of one or more sessions of care provided during that week - so much of the amount in which the individual is determined to be entitled to be paid child care benefit by fee reduction for the rebate year as is attributable to that week; and
(b) for an individual in respect of whom a determination is made under section 52E of the Family Assistance Administration Act for a past period - so much of the amount in which the individual is determined to be entitled to be paid child care benefit for the rebate year as is attributable to that week.
84E Component of formula - Jobs Education and Training (JET) Child Care fee assistance
Jobs Education and Training (JET) Child Care fee assistance means the payment of that name that is paid by the Commonwealth to the individual in respect of child care provided by one or more approved child care services to the child in the base week.
84F Component of formula - child care tax rebate limit
(1) The child care tax rebate limit is:
(a) for the income year ending on 30 June 2007 - $4,211; and
(b) for the income year ending on 30 June 2008 - $4,354.
(2) The limit is indexed annually under Schedule 4 from 1 July 2008 onwards.