Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007 (118 of 2007)

Schedule 1   Amendments relating to Child Care Management System

Part 1   Amendments

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

83   Section 219B

Repeal the section, substitute:

219B Obligation to pass on fee reductions where individual conditionally eligible

(1) This section applies if:

(a) a determination of conditional eligibility for child care benefit by fee reduction under section 50F is in force in respect of an individual (the claimant ) and a child for a session of care provided by an approved child care service to the child in a week; and

(b) the Secretary calculates under section 50Z, or recalculates under section 50ZA, the amount of fee reduction applicable in respect of the session of care; and

(c) the Secretary has notified the service of the amount in accordance with subsection 50Z(3), or the recalculated amount in accordance with subsection 50ZA(2).

(2) Subject to subsection (3), the service must, within 14 days after being notified of the amount as calculated or recalculated, pass the amount on to the claimant, except to the extent that the service is required to remit the amount to the Secretary under section 219QB.

Penalty: 60 penalty units.

Note: This amount must be passed on, even if the payment of amounts to the service in respect of fee reduction has been suspended under paragraph 200(1)(h).

(3) If:

(a) the Secretary, on recalculating under section 50ZA the amount in which the Secretary considers fee reduction is applicable in respect of the session of care (the last recalculation ), reduces the amount; and

(b) the amount is reduced for a reason other than the substitution or withdrawal by the service of a report given under section 219N;

the service must pass on to the claimant the amount as calculated, or recalculated, immediately before the last recalculation, rather than the amount last recalculated.

Note: The fact that the higher rather than the lower amount has been passed on will be taken into account when the determination of entitlement is made under section 51B.

(4) If:

(a) the service reduces the amount by which it charges the claimant in respect of the session of care in anticipation of the Secretary's calculation of the amount applicable in respect of fee reduction for that session (the anticipated fee reduction ); and

(b) the service was an approved child care service at the time the session of care was provided;

the service is taken to have passed on to the claimant an amount equal to the anticipated fee reduction.

(5) The amount is taken to have been passed on to the claimant on the day on which the Secretary notified the service of the amount in accordance with subsection 50Z(3).

(6) Subsection (2) is an offence of strict liability.

219BA Obligation to pass on fee reductions where approved child care service eligible

(1) This section applies if:

(a) an approved child care service is eligible under section 47 of the Family Assistance Act for child care benefit by fee reduction for a session of care provided by the service to a child at risk; and

(b) the Secretary calculates under section 50ZB, or recalculates under section 50ZC, the amount of child care benefit by fee reduction applicable in respect of the session of care; and

(c) the Secretary has notified the service of the amount in accordance with subsection 50ZB(3), or the recalculated amount in accordance with subsection 50ZC(2).

(2) Subject to subsection (3), the service must, within 14 days after being notified of the amount as calculated or recalculated, pass the amount on to itself, except to the extent that the service is required to remit the amount to the Secretary under section 219QB.

(3) If:

(a) the Secretary, on recalculating under section 50ZC the amount in which the Secretary considers child care benefit by fee reduction is applicable in respect of the session of care (the last recalculation ), reduces the amount; and

(b) the amount is reduced for a reason other than the substitution or withdrawal by the service of a report given under section 219N;

the service must pass on to itself the amount as calculated, or recalculated, immediately before the last recalculation, rather than the amount last recalculated.

Note: The fact that the higher rather than the lower amount has been passed on will be taken into account when the determination of entitlement is made under section 54B.

(4) If:

(a) the service reduces the amount it charges in respect of the session of care in anticipation of the Secretary's calculation of the amount applicable in respect of child care benefit by fee reduction for that session (the anticipated fee reduction ); and

(b) the service was an approved child care service at the time the session of care was provided;

the service is taken to have passed on to itself an amount equal to the anticipated fee reduction.

(5) The amount is taken to have been passed on on the day on which the Secretary notified the service of the amount in accordance with subsection 50ZB(3).

219BB Obligation to charge no more than usual fee - rate determined by child care service or Secretary

(1) If:

(a) an approved child care service certifies under subsection 76(1) or (2) of the Family Assistance Act the hourly rate of fee reductions or child care benefit applicable for sessions of care provided by the service to a child during a period; or

(b) the Secretary determines under subsection 81(2), (3) or (4) of the Family Assistance Act the hourly rate of fee reductions or child care benefit for sessions of care an approved child care service provides to a child during a period;

the service must ensure that the fees set for each of those sessions do not exceed the amount of the fees that the service would charge for the same session for the same child if that rate did not apply.

Penalty: 60 penalty units.

(2) Subsection (1) is an offence of strict liability.

219BC Obligation to charge no more than usual fee - special grandparent rate

(1) If a determination is in force under subsection 50T(1) with the effect that an individual is eligible for the special grandparent rate for a child in respect of a session of care provided to the child by an approved child care service, the service must ensure that the fees set for the session do not exceed the amount of the fees that the service would charge for the same session for the same child if that rate did not apply.

Penalty: 60 penalty units.

(2) Subsection (1) is an offence of strict liability.

219BD Obligation to charge no more than usual fee - Jobs Education and Training (JET) Child Care fee assistance

(1) If:

(a) a determination of conditional eligibility for child care benefit by fee reduction under section 50F is in force in respect of an individual and a child for a session of care provided by an approved child care service to the child; and

(b) the service becomes aware that the individual is eligible to receive Jobs Education and Training (JET) Child Care fee assistance in relation to the session of care;

the service must ensure that the fees set for the session do not exceed the amount of the fees that the service would charge an individual who was not eligible for that assistance for the same session for the same child.

Penalty: 60 penalty units.

(2) In subsection (1):

Jobs Education and Training (JET) Child Care fee assistance means the payment of that name that is paid by the Commonwealth.

(3) Subsection (1) is an offence of strict liability.