Family Assistance Legislation Amendment (Child Care Budget and Other Measures) Act 2008 (53 of 2008)

Schedule 2   Election commitments

Part 2   Paying child care tax rebate quarterly

Division 1   Amendments

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

13   Before Subdivision A of Division 4AA of Part 3

Insert:

Subdivision AA - Quarterly payments of child care tax rebate

65EAA Quarterly payments of child care tax rebate

When Secretary must calculate and pay quarterly payments

(1) If:

(a) the Secretary is satisfied that an individual is eligible under subsection 57EA(1) of the Family Assistance Act for child care tax rebate for a quarter in respect of a child; and

(b) the quarter has passed;

the Secretary must calculate the amount of the rebate which the Secretary considers is applicable in respect of the individual and the child for the quarter.

Note: The calculation is made in accordance with section 84AA of the Family Assistance Act.

(2) The Secretary must pay the amount of child care tax rebate calculated under subsection (1) to the individual at such time as the Secretary considers appropriate and to the credit of a bank account nominated and maintained by the individual.

Secretary may make direction as to the manner of making payments

(3) The Secretary may direct that the whole or a part of an amount that is to be paid under this section is to be paid in a different way from that provided for by subsection (2). If the Secretary gives the direction, the amount is to be paid in accordance with the direction.

(4) This section is subject to Part 4 and to Division 3 of Part 8B.

65EAB Revising a calculation of quarterly child care tax rebate

(1) The Secretary may recalculate an amount of child care tax rebate which the Secretary considers applicable:

(a) under subsection 65EAA(1); or

(b) under a previous application of this subsection;

in respect of an individual and a child for a quarter, so long as a determination of entitlement has not been made under Subdivision A in respect of the individual and child for the income year that includes the quarter.

(2) If:

(a) an amount of child care tax rebate applicable under this Subdivision in respect of an individual and a child for a quarter has been paid to the individual; and

(b) a recalculation under subsection (1) increases the amount of child care tax rebate applicable in respect of the individual and the child for the quarter;

then subsections 65EAA(2) to (4) apply to the increase as if the increase were the amount applicable under subsection 65EAA(1).

(3) If:

(a) an amount of child care tax rebate applicable under this Subdivision in respect of an individual and a child for a quarter has been paid to the individual; and

(b) a recalculation under subsection (1) decreases the amount of child care tax rebate applicable in respect of the individual and the child for the quarter;

the Secretary may set off all or a part of the decrease against an amount of child care tax rebate applicable under this Subdivision in respect of the individual and the child for a later quarter in the same income year.

65EAC Notices relating to quarterly payments of child care tax rebate

(1) The Secretary must give notice of an amount of child care tax rebate (the rebate amount ) applicable under this Subdivision to the individual, stating:

(a) the child's name and the quarter in respect of which the rebate amount is applicable; and

(b) the rebate amount; and

(c) the total amount of the individual's approved child care fees for the child worked out under step 1 of the method statement in section 84AA of the Family Assistance Act when calculating the rebate amount; and

(d) the total amount (if any) of fee reductions worked out under step 2 of the method statement in section 84AA of the Family Assistance Act when calculating the rebate amount; and

(e) if the rebate amount is the result of a recalculation covered by subsection 65EAB(2) - the amount of the increase in rebate as a result of the recalculation; and

(f) if the rebate amount is the result of a recalculation covered by subsection 65EAB(3) - the amount of the decrease in rebate as a result of the recalculation, and whether an amount will be set off as described in that subsection.

(2) The calculation and payment of an amount of child care tax rebate applicable under this Subdivision is not ineffective by reason only that any, or all, of the requirements of subsection (1) are not complied with.