Family Assistance, Social Security and Veterans' Affairs Legislation Amendment (2005 Budget and Other Measures) Act 2006 (36 of 2006)

Schedule 5   Reducing allocation of child care places

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

4   After section 207

Insert:

207A Reduction of allocation of child care places by unused or unusable places

(1) The Secretary may, in accordance with a determination under section 206, reduce the number of child care places allocated to an approved child care service if:

(a) that number exceeds the number of child care places provided by the service; or

(b) that number exceeds the number of child care places that the service is, under a law of a State or Territory, licensed to provide.

The reduction must not be greater than the excess.

(2) Before the reduction, the Secretary must (unless subsection (3) applies) give a notice to the service that:

(a) states that the Secretary proposes to make the reduction; and

(b) states the number of places by which the Secretary proposes to reduce the number of places allocated to the service; and

(c) invites the service to make written submissions to the Secretary about the proposed reduction; and

(d) is not inconsistent with a determination under section 206.

(3) If the service has informed the Secretary in writing that the number of child care places allocated to the service may be reduced, the Secretary may give the service a notice under subsection (2) before making the reduction.

(4) The Secretary must have regard to any submissions made by the service in deciding whether to make the reduction.

(5) If the Secretary reduces under this section the number of child care places allocated to an approved child care service, the Secretary must give the service a notice that states:

(a) the number of places by which the number of places allocated to the service is reduced; and

(b) the day on which the reduction takes effect, which must not be earlier than the day on which the notice is given; and

(c) the number of places allocated to the service, taking account of the reduction.

207B Effect of reduction in allocation of child care places

(1) This section explains the effect of a reduction under this Division of the number of child care places allocated to an approved child care service.

Note: A reduction may be made under section 200 or section 207A.

(2) This Division has effect after the reduction as if there had not been allocated to the service the number of places by which the number of places allocated to the service was reduced.

Note: This affects the operation of paragraph 197(b) for the service. It could also affect the making of allocations of child care places to other approved child care services after the reduction.