Family Assistance Legislation Amendment (Child Care Rebate) Act 2011 (25 of 2011)
Schedule 3 Amendments to be made if the Family Assistance and Other Legislation Amendment (Child Care and Other Measures) Act 2011 already passed
A New Tax System (Family Assistance) (Administration) Act 1999
2 Before Subdivision AA of Division 4AA of Part 3
Insert:
Subdivision AAA - Election to have child care rebate paid in various ways
65EAAAA Individual may elect to have child care rebate paid in various ways
(1) An individual may give the Secretary notice in accordance with subsection (2) electing to have child care rebate in respect of the individual and a child for care provided for the child in an income year paid in one of the following ways:
(a) weekly into a bank account maintained by the individual alone or jointly or in common with someone else;
(b) weekly to one or more approved child care services;
(c) quarterly into a bank account maintained by the individual alone or jointly or in common with someone else.
Note: Child care rebate is calculated on the basis of reports given by approved child care services in relation to each week of care under section 219N. A report for care provided in one week may be given up to 2 weeks later. A service may therefore give a report for 2 weeks together. For this reason, payments of child care rebate to an individual for 2 successive weeks may be made together. The effective result is then a fortnightly payment.
(2) A notice under subsection (1):
(a) must be given in the form, and in the manner or way, approved by the Secretary; and
(b) must be given before the beginning of the income year to which the notice relates unless:
(i) the individual makes a claim after the beginning of the income year for payment of child care benefit by fee reduction for care provided for the child by one or more approved child care services; or
(ii) the Secretary makes a determination under subsection (4).
(3) If an individual gives notice under subsection (1) when making a claim after the beginning of an income year for payment of child care benefit by fee reduction, the election is taken to relate to the income year in which the claim is made.
(4) The Secretary may determine, in writing, that an individual may give notice under subsection (1) after the income year to which the notice relates has begun, if the Secretary is satisfied that there are exceptional circumstances justifying the determination.
Note: A determination of entitlement to child care rebate will be made for the income year under Subdivision A of this Division. So if a person is entitled to child care rebate, does not elect to have it paid weekly or quarterly and has not been receiving child care rebate weekly or quarterly as a result of a previous election (see section 65EAAAC), child care rebate will be paid after the end of the income year.
65EAAAB Period in which election has effect
(1) If:
(a) a notice is given under paragraph 65EAAAA(1)(a) or (b) to have child care rebate paid weekly; and
(b) the notice is given before the income year to which it relates has begun;
the election takes effect on the first Monday in the income year and continues in effect for each week all or part of which falls in the income year.
(2) If:
(a) a notice is given under paragraph 65EAAAA(1)(c) to have child care rebate paid quarterly; and
(b) the notice is given before the income year to which it relates has begun;
the election takes effect on the first day of the first quarter in the income year and continues in effect for each quarter which falls in the income year.
(3) If notice is given under subsection 65EAAAA(1) after the income year to which it relates has begun:
(a) the Secretary must determine in writing the day on which the election is to take effect; and
(b) the election continues in effect:
(i) if the notice is given under paragraph 65EAAAA(1)(a) or (b) to have child care rebate paid weekly - for each week all or part of which falls in the income year; and
(ii) if the notice is given under paragraph 65EAAAA(1)(c) to have child care rebate paid quarterly - for each quarter which falls in the income year.
65EAAAC Where no election made for an income year
If an individual does not give notice under subsection 65EAAAA(1) for an income year, child care rebate in respect of the individual and the child for care provided during the income year is to be paid:
(a) if child care rebate was paid in respect of the individual and the child in relation to the immediately preceding income year - in the same way as it was paid in relation to that year; and
(b) otherwise - for the income year.
Subdivision AAB - Weekly payments of child care rebate
65EAAA Weekly payments of child care rebate
If:
(a) the Secretary is satisfied that an individual is eligible under subsection 57EAA(1) of the Family Assistance Act for child care rebate for a week in respect of a child; and
(b) the Secretary has calculated an amount of fee reduction under subsection 50Z(1) in respect of the individual and the child for a session or sessions of care provided by an approved child care service in the week;
the Secretary must calculate the amount of the rebate which the Secretary considers is applicable in respect of the individual and the child for care provided for the child by the approved child care service in the week.
Note 1: The individual will not be eligible to have child care rebate paid weekly unless the individual has made an election under paragraph 65EAAAA(1)(a) or (b) to have rebate paid weekly.
Note 2: The calculation is made in accordance with section 84AAA of the Family Assistance Act.
Note 3: The amount of fee reduction calculated under subsection 50Z(1) may be a nil amount (see section 4A).
65EAAB Where individual elects to have child care rebate paid weekly to approved child care service
(1) This section applies if:
(a) the Secretary calculates an amount of child care rebate under section 65EAAA which the Secretary considers is applicable in respect of an individual and a child for care provided for the child by an approved child care service in a week; and
(b) the individual has made an election under paragraph 65EAAAA(1)(b) that is in effect for the week to have child care rebate paid weekly to the approved child care service.
(2) The Secretary must notify the approved child care service of the amount calculated.
(3) The notice must be given in the form, and in the manner or way, approved by the Secretary.
(4) Without limiting subsection (3), the Secretary may approve notification of the amount by making the information available to the approved child care service using an electronic interface. In that case, the approved child care service is taken to have been given the notice on the day on which the information is made available.
Note: The amount is then paid to the approved child care service under subsection 219QC(1).
65EAAC Where individual elects to have child care rebate paid weekly into own bank account
(1) This section applies if:
(a) the Secretary calculates an amount of child care rebate under section 65EAAA which the Secretary considers is applicable in respect of an individual and a child for care provided for the child by an approved child care service in a week; and
(b) the individual has made an election under paragraph 65EAAAA(1)(a) that is in effect for the week to have child care rebate paid weekly into a bank account nominated and maintained by the individual.
(2) The Secretary must pay the amount of child care rebate calculated under section 65EAAA to the individual, at such time as the Secretary considers appropriate, by paying it to the credit of the bank account.
(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) The Secretary must give notice to the individual:
(a) identifying the week or weeks to which the notice relates (the rebate period ); and
(b) stating:
(i) the child's name; and
(ii) the amount of child care rebate calculated in respect of the rebate period (the rebate amount ); and
(iii) the total amount of the individual's approved child care fees for care provided for the child by the approved child care service during the rebate period, worked out under step 1 of the method statement in section 84AAA of the Family Assistance Act when calculating the rebate amount; and
(iv) the total amount (if any) of fee reductions for care provided for the child by the approved child care service during the rebate period, worked out under step 2 of the method statement in section 84AAA of the Family Assistance Act when calculating the rebate amount.
(5) The calculation and payment of an amount of child care rebate applicable under this section is not ineffective by reason only that any, or all, of the requirements of subsection (4) are not complied with.
(6) This section is subject to:
(a) section 65EAAF; and
(b) section 65EAB; and
(c) Part 4; and
(d) Division 3 of Part 8B.
65EAAD Revising a calculation of weekly child care rebate
The Secretary may recalculate an amount of child care rebate which the Secretary considers is applicable:
(a) under section 65EAAA; or
(b) under a previous application of this section;
in respect of an individual and a child for care provided for the child by an approved child care service in a week, 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 in which all or part of the week falls.
65EAAE If weekly payment is to an approved child care service, notice of revised calculation must be given to the service
(1) This section applies if:
(a) the Secretary, under section 65EAAD, recalculates an amount of child care rebate which the Secretary considers is applicable in respect of an individual and a child for care provided for the child by an approved child care service in a week; and
(b) the individual has made an election under paragraph 65EAAAA(1)(b) that is in effect for the week to have child care rebate paid weekly to the approved child care service.
(2) The Secretary must notify the approved child care service of the recalculated amount.
(3) The notice must be given in the form, and in the manner or way, approved by the Secretary.
(4) Without limiting subsection (3), the Secretary may approve notification of the amount by making the information available to the approved child care service using an electronic interface. In that case, the approved child care service is taken to have been given the notice on the day on which the information is made available.
Note: The effect of a recalculation on payments to an approved child care service is dealt with in subsection 219QC(2) and section 219QD.
65EAAF Effect of revised calculation - payment to the individual
(1) This section applies if:
(a) the Secretary, under section 65EAAD, recalculates an amount of child care rebate which the Secretary considers is applicable in respect of an individual and a child for care provided for the child by an approved child care service in a week; and
(b) the individual has made an election under paragraph 65EAAAA(1)(a) that is in effect for the week to have child care rebate paid weekly into a bank account nominated and maintained by the individual.
(2) If the recalculation increases the amount of child care rebate applicable in respect of the individual and the child for care provided for the child by the service in the week, then subsections 65EAAC(2), (3) and (6) apply to the increase as if the increase were the amount applicable under section 65EAAA.
(3) If the recalculation decreases the amount of child care rebate applicable in respect of the individual and the child for care provided for the child by the service in the week, the Secretary may set off all or a part of the decrease against an amount of child care rebate applicable under this Subdivision or Subdivision AA for that or any other approved child care service in respect of the individual and the child for a later period in the same income year.
(4) The Secretary must give notice to the individual:
(a) identifying the week or weeks to which the notice relates (the rebate period ); and
(b) stating:
(i) the child's name; and
(ii) the amount of child care rebate as recalculated under this section in respect of the rebate period (the rebate amount ); and
(iii) the total amount of the individual's approved child care fees for care provided for the child by the approved child care service during the rebate period, worked out under step 1 of the method statement in section 84AAA of the Family Assistance Act when recalculating the rebate amount; and
(iv) the total amount (if any) of fee reductions for care provided for the child by the approved child care service during the rebate period, worked out under step 2 of the method statement in section 84AAA of the Family Assistance Act when recalculating the rebate amount.
(5) The recalculation and payment of an amount of child care rebate applicable under this section is not ineffective by reason only that any, or all, of the requirements of subsection (4) are not complied with.