Family Assistance Legislation Amendment (Child Care) Act 2009 (50 of 2009)

Schedule 2   Child care rebate in substitution

Part 1   Amendments

A New Tax System (Family Assistance) Act 1999

7   After Subdivision B of Division 4A of Part 4

Insert:

Subdivision BA - Child care rebate relating to child care benefit in substitution

84DA Amount of the child care rebate - relating to child care benefit in substitution

If a determination of entitlement for child care rebate under section 65ECA of the Family Assistance Administration Act is in force in respect of:

(a) a period (the entitlement period ); and

(b) an individual (the substitute individual ), and a deceased individual, for child care provided by one or more approved child care services to a child during that period;

the amount of the rebate which the substitute individual is entitled to be paid in respect of the child for that period is worked out as follows:

Method statement

Step 1. Work out the rebate periods. The entitlement period will be the rebate period if it is entirely within an income year. However, if the entitlement period is spread over 2 income years, the part of the entitlement period in each of those years will be a rebate period .

Step 2. Work out the total amount of the deceased individual's approved child care fees for the child in each base week for the deceased individual and the child in each rebate period.

Step 3. Work out the amount (if any) of the substitute individual's entitlement to child care benefit by single payment/in substitution for the care for the child in each base week for the deceased individual and the child in each rebate period.

Step 4. Work out the total amount of Jobs Education and Training (JET) Child Care fee assistance (if any) that the deceased individual was eligible to receive for the child in each base week for the deceased individual and the child in each rebate period.

Step 5. Work out, for each rebate period, the lesser of the following amounts for the child:

(a) the amount worked out using the formula:

50% x (Step 2 amount - Step 3 amount - Step 4 amount)

(b) the child care rebate limit for the income year that includes the rebate period.

Add the results if there are 2 rebate periods.

Step 6. The result is the amount of the substitute individual's child care rebate for the child for the entitlement period.

84DB Component of formula - approved child care fees

General rule - approved child care fees for a base week for the deceased individual and a child

(1) For the purposes of section 84DA, the amount of the deceased individual's approved child care fees for a child in a base week for the deceased individual and the child is the amount of fees for which:

(a) the deceased individual; or

(b) the deceased 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 there is any entitlement to child care benefit for that care.

Special rule if the week is also a base week for the deceased individual's partner for the child

(2) However, if the base week is also:

(a) a base week for the deceased individual's partner and the child; or

(b) a base week, for the purposes of section 84A, for the deceased individual's partner and the child;

the amount of the deceased individual's approved child care fees for the child in the base week is the amount of fees payable for care provided during the week that is covered by a determination mentioned in paragraph 84DC(c) in respect of the deceased individual and the child.

Disregard amounts passed on to reduce fees

(3) For the purposes of this section, disregard any amount passed on to the deceased individual under section 219B of the Family Assistance Administration Act.

84DC Component of formula - base week

For the purposes of section 84DA, a week is a base week for a deceased individual for a child in a rebate period if:

(a) all or part of the week falls within the rebate period; and

(b) care is provided by one or more approved child care services to the child during the week; and

(c) the care is covered by:

(i) a determination under section 53D of the Family Assistance Administration Act that the substitute individual is entitled to be paid child care benefit by single payment/in substitution because of the death of the deceased individual; or

(ii) a determination under subsection 53E(1) of the Family Assistance Administration Act in relation to the substitute individual and the death of the deceased individual; and

(d) paragraph 57F(1A)(c) (as affected by subsections 57F(2) and (3)) is satisfied for the week.

84DD Component of formula - amount of the substitute individual's entitlement to child care benefit

The amount of a substitute individual's entitlement to child care benefit by single payment/in substitution for the care of a child in a base week for the deceased individual and the child in a rebate period is:

(a) for a substitute individual in respect of whom a determination is made under section 53D of the Family Assistance Administration Act because of the death of the deceased individual - so much of the amount in which the substitute individual is determined to be entitled to be paid child care benefit for the rebate period as is attributable to that week; and

(b) for a substitute individual in respect of whom a determination is made under subsection 53E(1) of that Act because of the death of the deceased individual - a nil amount, to the extent that the determination relates to the session or sessions of care provided during that week.