Family Assistance Legislation Amendment (Child Care Rebate) Act 2011 (25 of 2011)

Schedule 3   Amendments to be made if the Family Assistance and Other Legislation Amendment (Child Care and Other Measures) Act 2011 already passed

A New Tax System (Family Assistance) (Administration) Act 1999

6   After Division 2 of Part 8A

Insert:

Division 2A - Weekly payments in respect of child care rebate to approved child care services

219QC Weekly payments of child care rebate

(1) If:

(a) the Secretary, under section 65EAAA, calculates the amount in which the Secretary considers child care rebate is applicable in respect of an individual and a child for care provided for the child by an approved child care service in a week; and

(b) the individual has made an election under paragraph 65EAAAA(1)(b) that is in effect for the week to have child care rebate paid weekly to the approved child care service;

the Secretary must pay the amount calculated to the credit of a bank account nominated and maintained by the service.

(2) If:

(a) the Secretary, on recalculating under section 65EAAD the amount in which the Secretary considers child care rebate is applicable in respect of an individual and a child for care provided for the child by an approved child care service in a week, increases the amount; and

(b) the individual has made an election under paragraph 65EAAAA(1)(b) that is in effect for the week to have child care rebate paid weekly to the approved child care service;

the Secretary must pay to the credit of a bank account nominated and maintained by the service an amount equal to the increase.

Relationship with other provisions

(3) This section is subject to:

(a) Part 4 (overpayments and debt recovery); and

(b) section 219QA (set off where amount of applicable fee reduction reduced on recalculation); and

(c) section 219QD (set off where amount of applicable child care rebate reduced on recalculation); and

(d) section 219RC (set off where enrolment ceases or where notification of decision to cease operating service); and

(e) section 219RE (set off where a payment under section 219RD is made); and

(f) paragraph 200(1)(i) (suspending payment in respect of child care rebate).

219QD Payments and set offs where recalculation results in reduced weekly child care rebate

(1) This section applies if:

(a) the Secretary, on recalculating under section 65EAAD the amount in which the Secretary considers child care rebate is applicable in respect of an individual and a child for care provided for the child by an approved child care service in a week, reduces the amount (including to nil); and

(b) the individual has made an election under paragraph 65EAAAA(1)(b) that is in effect for the week to have child care rebate paid weekly to the approved child care service.

(2) The Secretary must pay the amount (if any) as last recalculated to the credit of a bank account nominated and maintained by the service.

(3) The amount as calculated, or recalculated, immediately before the last recalculation must be set off against one or more child care service payments that are to be made to the service (the first service ) or to another approved child care service operated by the person who operates the first service.

Note: For child care service payment see subsection 3(1).

219QE Remitting amounts that cannot be passed on

(1) If:

(a) either:

(i) an amount is paid to an approved child care service under section 219QC or subsection 219QD(2) for a week; or

(ii) such an amount would be paid, but for a set off under subsection 82(2), section 219QA, section 219QD, section 219RC or section 219RE, or the imposition of a sanction under paragraph 200(1)(i); and

(b) it is not reasonably practicable for the service to pass on to the individual within the time required under subsection 219EA(2) the child care rebate in respect of which the amount was or would have been paid;

the service must immediately remit to the Secretary an amount equal to the amount that could not be passed on.

Note: This is a civil penalty provision. Part 8C provides for pecuniary penalties for breach of civil penalty provisions.

(2) An approved child care service commits an offence if the service contravenes subsection (1).

Penalty: 60 penalty units.

(3) The amount must be remitted in the manner or way approved by the Secretary.

(4) The service must notify the Secretary of the remittal of the amount.

(5) The notice must:

(a) be given in the form, and in the manner or way, approved by the Secretary; and

(b) include any information required by the Secretary.