Family Assistance Legislation Amendment (Cheaper Child Care) Act 2022 (66 of 2022)

Schedule 5   Child care discount for early childhood workforce

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

5   After section 201B

Insert:

201BA Provider may allow discount for care provided to child of educator or cook engaged by provider

(1) A provider to whom a notice is given of a fee reduction decision referred to in item 1 or 2 of the table in subsection 67EB(2) for an individual, for sessions of care provided by a child care service to a child in a week, may allow the individual, or the individual's partner, a discount (a permissible staff discount ) on the pre-discount fee for the week for the individual, or the individual's partner, if:

(a) the individual, or the individual's partner, is employed, contracted or otherwise engaged at a child care service by the provider, for any period during that week, as an educator (within the meaning of the Education and Care Services National Law) or a cook; and

(b) the child care service referred to in paragraph (a) is not a family day care service or an in home care service.

Note: For pre-discount fee , see subsection (4).

(2) The permissible staff discount that may be allowed to the individual, or the individual's partner, for the week under subsection (1) must not be more than 95% of the pre-discount fee for that week for the individual or the individual's partner.

(3) If the provider allows the individual, or the individual's partner, a permissible staff discount under subsection (1), the amount of the discount is not recoverable from the individual or the individual's partner.

Note: Providing care of a child in a child care facility to a current employee at a discount may not attract fringe benefits tax in some circumstances: see subsection 47(2) of the Fringe Benefits Tax Assessment Act 1986.

Meaning of pre-discount fee

(4) For the purposes of this section, the pre-discount fee for the week for the individual, or the individual's partner, is the difference between:

(a) the total of the hourly session fees for all sessions of care provided by the child care service to the child in the week; and

(b) the sum of:

(i) the fee reduction amount for the fee reduction decision for the individual in relation to those sessions of care; and

(ii) the amount of any payment prescribed by the Minister's rules for the purposes of paragraph 2(2A)(c) of Schedule 2 to the Family Assistance Act that the individual benefited from in respect of those sessions of care.