Family Assistance Legislation Amendment (Child Care Rebate) Act 2011 (25 of 2011)

Schedule 1   Amendments to allow weekly payment of child care rebate

Part 1   Amendments

A New Tax System (Family Assistance) Act 1999

3   Before Subdivision A of Division 4A of Part 4

Insert:

Subdivision AA - Child care rebate for a week

84AAA Amount of the child care rebate - for a week

If the Secretary calculates, under section 65EAAA of the Family Assistance Administration Act, the amount of child care rebate applicable in respect of an individual and a child for care provided for the child by an approved child care service in a week, 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 care provided for the child by the approved child care service in the week.

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 the care provided for the child by the approved child care service in the week.

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 that is attributable to the care provided for the child by the approved child care service in the week.

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

(a) the amount worked out using the formula:

(b) the amount worked out by subtracting from the child care rebate limit for the income year in which the week began, the total of the child care rebate (if any) applicable in respect of the individual and the child for each earlier week that falls wholly in that income year (whether paid weekly or quarterly).

Step 5. The amount of child care rebate applicable in respect of the individual and the child for care provided for the child by the approved child care service in the week is:

(a) the step 4 amount reduced by the reduction percentage; or

(b) if the Secretary determines under section 84AAD that the step 4 amount is not to be reduced - the step 4 amount.

84AAB Component of formula - approved child care fees

General rule - approved child care fees for care provided for a child in a week

(1) For the purposes of section 84AAA, the amount of an individual's approved child care fees for care provided for a child by an approved child care service in a week is the amount of fees for which:

(a) the individual; or

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

is liable for the care. For this purpose, disregard the weekly limit of hours applicable to the individual in the week.

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

(2) However, the individual's approved child care fees for care provided for the child in the week do not include fees that the individual's partner is liable to pay if:

(a) paragraphs 57EAA(1)(b) to (e) (as affected by subsections 57EAA(2) and (3)) are satisfied for the partner and the child for the week; or

(b) the week is a base week for the individual's partner and the child under section 84AC (partner receiving child care rebate quarterly).

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 or section 219EA of the Family Assistance Administration Act for the care.

84AAC Component of formula - reduction percentage

(1) For the purposes of section 84AAA, the reduction percentage is:

(a) 15%; or

(b) if the Secretary specifies a percentage in an instrument under subsection (2) - that percentage.

(2) The Secretary may, by legislative instrument, specify a percentage for the purposes of paragraph (1)(b).

84AAD Component of formula - Secretary determines that step 4 amount not to be reduced

(1) The Secretary may determine in writing that, for the purposes of step 5 of the method statement in section 84AAA as it applies in calculating the amount of child care rebate applicable in respect of an individual and a child specified in the determination, the step 4 amount is not to be reduced.

(2) A determination under subsection (1) must specify either:

(a) the week or weeks to which it is to apply; or

(b) that it is to apply to weeks beginning on or after a specified day.

The determination may apply to a week or weeks beginning before the determination is made.

(3) The Secretary may only make a determination under subsection (1) in respect of an individual and a child:

(a) if the amount of fee reduction calculated by the Secretary under subsection 50Z(1) of the Family Assistance Administration Act in respect of the individual and the child for sessions of care provided in a week to which the determination applies is a nil amount because the CCB % applicable to the individual is zero %; or

(b) in other circumstances of a kind determined by the Secretary, by legislative instrument.