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) Act 1999

7   Before section 84A

Insert:

Subdivision A - Child care tax rebate for a quarter

84AA Amount of the child care tax rebate - for a quarter

If the Secretary must, under subsection 65EAA(1) of the Family Assistance Administration Act, calculate the amount of child care tax rebate applicable in respect of an individual and a child for a quarter in an income year, the amount is worked out as follows:

Method statement

Step 1. Work out the total amount of the individual's approved child care fees for the child in each base week for the individual and the child in the quarter.

Step 2. Work out the total amount (if any) of so much of the fee reductions:

(a) calculated under subsection 50Z(1) of the Family Assistance Administration Act; or

(b) recalculated under subsection 50ZA(1) of that Act;

in respect of the individual and the child as are attributable to each base week in the quarter.

Step 3. Work out the total amount of Jobs Education and Training (JET) Child Care fee assistance (if any) that the individual is eligible to receive for the child in each base week for the individual and the child in the quarter.

Step 4. Work out the lesser of the following amounts for the child:

(a) the amount worked out using the formula:

50% X (Step 1 amount - Step 2 amount - Step 3 amount)

(b) the amount worked out by subtracting the total of the child care tax rebate (if any) applicable in respect of the individual and the child for each earlier quarter in the income year from the child care tax rebate limit for the income year.

Step 5. The result is the amount of the individual's child care tax rebate for the child for the quarter.

84AB Component of formula - approved child care fees

General rule - approved child care fees for a base week for an individual and a child

(1) For the purposes of section 84AA, the amount of an individual's approved child care fees for a child in a base week for the individual and the child is the amount of fees for which:

(a) the individual; or

(b) the individual's partner during the week;

is liable for care provided by an approved child care service or services for the child during the week. For this purpose, disregard the weekly limit of hours applicable to the individual in the week.

Special rule if the week is also a base week for the individual's partner for the child

(2) However, the individual's approved child care fees for the week do not include fees that the individual's partner is liable to pay if the base week is also a base week for the individual's partner and the child.

Disregard amounts passed on to reduce fees

(3) For the purposes of this section, disregard any amount passed on to the individual under section 219B of the Family Assistance Administration Act.

84AC Component of formula - base week

For the purposes of section 84AA, a week is a base week for an individual for a child in a quarter if:

(a) all or part of the week falls within the quarter; and

(b) paragraphs 57EA(1)(b) to (e) (as affected by subsections 57EA(2) and (3)) are satisfied for the individual, the child and the week.

Subdivision B - Child care tax rebate for an income year

Note: The heading to section 84A is altered by adding at the end " - for an income year ".