Family Assistance Legislation Amendment (Child Care Subsidy) Act 2021 (86 of 2021)
Schedule 2 Increased amounts of child care subsidy
Part 1 Phase 1 amendments
A New Tax System (Family Assistance) Act 1999
7 After clause 3 of Schedule 2
Insert:
3A Applicable percentage - other cases
When applicable percentage determined in accordance with this clause
(1) An individual's applicable percentage for a session of care provided to a child in a CCS fortnight is determined in accordance with this clause if:
(a) the child is a higher rate child in relation to the individual for the session of care; and
(b) the session of care is not provided by an in home care service.
What is the applicable percentage?
(2) Subject to subclauses (4) and (5) of this clause, the individual's applicable percentage for the session of care is determined by the table in subclause 3(1), and by subclause 3(3), as modified by subclause (3) of this clause.
(3) For the purposes of subclause (2), the following modifications apply:
(a) in item 1 of the table in subclause 3(1), omit "85%" and substitute "95%";
(b) in item 3 of the table in subclause 3(1), omit "50%" and substitute "80%";
(c) in item 5 of the table in subclause 3(1), omit "20%" and substitute "50%";
(e) in the formula in subclause 3(3), omit "50" and substitute "80".
(4) Subclause (5) applies, and subclause (2) does not apply, if the individual's adjusted taxable income for the income year in which the CCS fortnight starts is above the lower income threshold and below the second income threshold.
(5) The individual's applicable percentage for the session of care is the lesser of 95% and the percentage worked out by:
(a) starting with the applicable percentage (the default percentage ) that would apply to the individual for the session of care under item 2 of the table in subclause 3(1) and under subclause 3(2); and
(b) adding 30 percentage points to the default percentage.
Example: If the default percentage is 60%, the individual's applicable percentage for the session of care is 90%. If the default percentage is 75%, the individual's applicable percentage for the session of care is 95%.
3B Higher rate child
Higher rate child
(1) A child (the relevant child ) is a higher rate child in relation to an individual for a session of care provided to the relevant child in a CCS fortnight if:
(a) the relevant child satisfies the conditions in subclause (2) in relation to the individual and the CCS fortnight; and
(b) another child (the other child ) satisfies the conditions in subclause (2) or (3) in relation to the individual and the CCS fortnight; and
(c) one of the following conditions is satisfied:
(i) if the relevant child and the other child were born on different days - the other child is older than the relevant child;
(ii) if the relevant child and the other child were born on the same day - the other child is ranked above the relevant child for the CCS fortnight by a determination under subclause (5).
Note: There may be several children each of whom is a higher rate child in relation to the same individual for sessions of care provided in a CCS fortnight.
(2) A child satisfies the conditions in this subclause in relation to an individual and a CCS fortnight if:
(a) the child is under 6 years of age on the first Monday of the CCS fortnight; and
(b) a determination under paragraph 67CC(1)(a) of the Family Assistance Administration Act determines that the individual is eligible for CCS by fee reduction for the child; and
(c) that determination is in effect in relation to the first Monday ofthe CCS fortnight.
(3) A child satisfies the conditions in this subclause in relation to an individual and a CCS fortnight if:
(a) the child is under 6 years of age on the first Monday of the CCS fortnight; and
(b) a determination under paragraph 67CC(1)(a) of the Family Assistance Administration Act determines that a person who is a partner of the individual on the first Monday of the CCS fortnight is eligible for CCS by fee reduction for the child; and
(c) that determination is in effect in relation to the first Monday ofthe CCS fortnight.
Determinations ranking children born on same day
(4) Subclause (5) applies if:
(a) there is a group of 2 or more children who were all born on the same day; and
(b) at least one child in the group satisfies the conditions in subclause (2) in relation to an individual and a CCS fortnight; and
(c) every child in the group satisfies the conditions in subclause (2) or (3) in relation to that individual and that CCS fortnight.
(5) The Secretary must determine, in writing, that one of the children in the group is ranked above the other child or children in the group for the CCS fortnight.
(6) When making a determination under subclause (5), the Secretary must apply the Minister's rules (if any) prescribed for the purposes of this subclause.
(7) A determination under subclause (5) is not a legislative instrument.