House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Family and Community Services, Senator the Hon. Jocelyn Newman)

Schedule 1 - amendment of the A New Tax System (Family Assistance) Act 1999 - Part 2 - amendments relating to child care benefit

Overview of Part 2 of Schedule 1

Part 2 amends the eligibility and rate rules in the A New Tax System (Family Assistance) Act 1999 (the Family Assistance Act) that apply to child care benefit (CCB). These amendments can be grouped into the following categories:

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amendments to interpretation provisions;

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revised eligibility provisions, including limitations on eligibility other than the weekly limit of hours;

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revised provisions relating to limitations on eligibility: the weekly limit of hours;

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revised rate provisions, including the special rate applicable for individuals in hardship or children at risk;

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amendments to the CCB Rate Calculator.

Explanation of amendments

Amendments to interpretation provisions

24 hour care definitions

New definitions are inserted relating to 24 hour care. 24 hour care provided to a child, by any approved child care service other than an approved occasional care service, may attract CCB, but only to a limited extent. The extent to which CCB is available for 24 hour care is largely reflected in the provisions relating to the weekly limit of hours. See the discussion below on new Subdivision G of Division 4 of Part 3, especially new subsection 53(4) and new section 56.

The new 24 hour care definitions are inserted into section 3 of the Family Assistance Act by items 42, 43, 44 and 48 . The definitions are discussed below along with new section 56.

Definition of absence

The meaning of "absence" from a session of care provided to a child by an approved child care service is being clarified by items 45, 52 and 53 ( item 52 substituting new sections 10 and 10A). The definition is essentially to allow CCB to be paid even though a child may be absent from care in certain circumstances, eg, illness or attendance at pre-school.

For this purpose, the current definition in the Family Assistance Act does not allow CCB to be paid for absences before the service starts providing care for the child or after it stops providing care. The clarified definition will allow CCB to be paid in these circumstances in some cases, eg, if the child is booked in to start care on a Monday but is ill on that day. This gives a beneficial outcome for families. The definition will now be split between occasional care and all other types of care. Because of the inherent irregularity in occasional care services, the absences must be handled differently, although the outcomes will be comparable in terms of how beneficial they are for the service and the customers.

The new definition also clarifies that 30 days is the maximum allowable number of permitted absence days, which is one of the grounds for allowing CCB to be paid despite absence.

Disabled person definition

"Disabled person" is a term used in the weekly limit of hours provisions (in particular, see new subsections 54(6) and (7) and section 57E). In the current subsection 53(1) of the Family Assistance Act, the term was to have been defined in a disallowable instrument. These amendments now insert the definition into section 3 of the Family Assistance Act.

A disabled person is a person who is either receiving disability support pension under the Social Security Act or invalidity pension under the Veterans' Entitlements Act 1986 , who is participating in an independent living program, who has been diagnosed to the appropriate level by a medical practitioner or psychologist, or who is one of a class of persons determined by the Minister in a disallowable instrument.

These amendments are made by items 46 and 48 (the latter inserting new subsections 3(3) and (4)).

Australian resident definition

The purpose of items 49, 50 and 51 is to clarify the current Family Assistance Act provision that allows a person to be determined to be an Australian resident for CCB purposes. The clarification is that such a determination may be made for a period or indefinitely, and that the Minister's guidelines on the subject may deal with time limits for such periods.

Other minor amendments

Items 47 and 48 (the latter inserting new subsection 3(6)) move existing stipulation's that, for CCB, a week commences on a Monday, into the primary interpretation area.

Revised eligibility provisions, including limitations on eligibility other than the weekly limit of hours

NEW DIVISION 4 - ELIGIBILITY FOR CHILD CARE BENEFIT

Item 54 repeals the Division of the Family Assistance Act currently relating to CCB eligibility and substitutes a new Division 4 of Part 3.

The new provisions incorporate the same basic elements of eligibility. However, their structure and content have been refined to better reflect the complex operation of the existing (ie, pre-family assistance) child care payments as translated to the new family assistance regime.

The new eligibility provisions themselves will be discussed under this heading, together with the limitations on eligibility that do not relate to the weekly limit of hours (see the next heading for that limit).

New section 41 - Overview of Division

The new Division starts with an overview provision spelling out that the importance of the eligibility provisions is that they must be satisfied before a person may be determined to be entitled to be paid CCB. Such a determination is made under specified provisions of the FA Admin Act.

There are various types of CCB for which a person may be eligible. Either an individual or an approved child care service may be eligible for CCB by fee reduction. This is the type of CCB through which the fees charged by a service for care provided to a child during the year are reduced so that the family pays only the reduced amount. The service is funded to do this by way of regular advances from the Commonwealth. The service itself may be eligible for this type of CCB in the case of a child at risk of serious abuse or neglect if there is not already an individual eligible in respect of the child.

The other types of CCB for which an individual may be eligible are CCB for a past period, either for care provided by an approved child care service or by a registered carer, or CCB by single payment/in substitution because of the death of another individual who was eligible for, or entitled to, CCB.

New Subdivision A - Eligibility of an individual for CCB by fee reduction for care provided by an approved child care service

New section 42 - When an individual is conditionally eligible for child care benefit by fee reduction for care provided by an approved child care service

This section sets out when an individual is conditionally eligible for CCB by fee reduction in respect of a particular child. Being determined, under the FA Admin Act, to be conditionally eligible entitles an individual to have his or her child care fees (for care provided, during the year, to the child by an approved child care service) reduced. The individual might also be conditionally eligible in respect of one or more other children in the family. The amount by which the fees are reduced for each child may differ.

There are three criteria for conditional eligibility. The first is that the child must be the individual's, or his or her partner's, FTB child (as defined, although subsection (2) provides a special additional power for the Secretary to determine a child to be an FTB child of the individual, or partner, for the purpose of this section).

The second criterion is that the individual, or his or her partner, is an Australian resident. There are two alternatives to this. One is that the individual, or the partner, meets the residence rules for special benefit under the Social Security Act (the same concession is made for FTB). These are more generous than for family assistance generally and allow the holding of certain visas as Australian residence. The other alternative is that the individual, or the partner, is studying in Australia and receiving Commonwealth financial assistance for that study. (There is also a discretion in section 8, as amended by items 49, 50 and 51 , to determine an individual to be an Australian resident in cases of hardship.)

The third criterion relates to immunisation, but applies only to an FTB child who is under 7 and born on or after 1 January 1996 (in line with existing childcare assistance and childcare rebate arrangements). On claim for CCB by fee reduction, the immunisation criterion will always be satisfied. This may be so because the child is fully immunised for his or her age, or meets the requirements in some other way such as conscientious objection, as set out in section 6. Otherwise (if the section 6 immunisation requirements are not met), the immunisation criterion described in this section will still be satisfied, either because the Secretary gives a notice under the FA Admin Act requiring that the child meet the section 6 immunisation requirements within 63 days, or because the individual and the child are within the period before such a notice is given.

If, after the 63 day notice period, the child still does not meet the section 6 immunisation requirements, the individual will no longer be conditionally eligible under this section. This would be grounds for a variation under the FA Admin Act of the conditional eligibility determination with the effect that the individual is no longer conditionally eligible, and therefore no longer entitled to have his or her child care fees reduced.

There is no immunisation requirement explicitly mentioned in the current section 41 relating to conditional eligibility, although this requirement is mentioned explicitly for the other two forms of CCB covered by that legislation. It was always intended that this requirement would be applied through the Secretary's power to impose an immunisation requirement (which itself was to have been provided by regulation, but is now incorporated into the FA Admin Act). The requirement is now given proper reflection in the conditional eligibility criteria.

New section 42 is subject to the limitations on eligibility provided by new Subdivision F(ie, those that do not relate to hours).

New section 43 - When an individual is eligible for child care benefit by fee reduction for care provided by an approved child care service

This section works alongside new section 42 to provide the rules for eligibility (as opposed to conditional eligibility) for CCB by fee reduction.

First, a determination of conditional eligibility must be in force so that an individual is conditionally eligible for this type of CCB for a particular child. If so, a session of care (a term whose meaning is derived from a disallowable instrument under section 9, but essentially the minimum period of care for which a fee is charged) must be provided to the child, in Australia, by an approved child care service. The session must be one for which the individual, or partner, is liable to pay. If these criteria are all met, then the individual is eligible for the session.

This finding of eligibility will be made by the Secretary only after the end of the income year in which the session was provided, as part of the formal overall determination of the individual's entitlement to be paid CCB by fee reduction for all sessions of care, for which the individual is eligible, provided in the year. The entitlement will be a gross amount for all of those sessions. If this should be more than the total amount by which the individual's child care fees were reduced by the service for those sessions during the year, then a top-up amount of the difference will be paid to the individual. If the amount of the entitlement should be less than that fee reduction total, then the individual will owe the Commonwealth a debt of the difference.

The annual basis to the formal entitlement has no effect on the individual's right to receive the benefit of fee reductions during the year. The new section 43 omits the provisions currently housed in that section relating to quarterly statements by services and quarterly instalment periods. These are to be properly reflected in the FA Admin Act as reporting periods, in the provisions relating to the obligations of services.

This section is subject to the various limitations on eligibility, including those relating to hours, contained in new Subdivisions F and G.

New Subdivision B - Eligibility of an individual for CCB for a past period for care provided by an approved child care service

New section 44 - When an individual is eligible for child care benefit for a past period for care provided by an approved child care service

This new section is the equivalent of current section 43. It relates to eligibility for the lump sum type of CCB available after the end of an income year in respect of sessions of care provided within that year by an approved child care service. This type of CCB offers customers a choice, which is not available under the existing childcare assistance arrangements.

Little has changed between the two versions of the provision. However:

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The residence criterion has been relaxed (as it has been for FTB) so that it is satisfied if the individual, or his or her partner, meet the residence rules for special benefit under the Social Security Act. These are more generous than for family assistance generally and allow the holding of certain visas as Australian residence.

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The immunisation requirement now reflects the policy currently in place for childcare assistance and childcare rebate (ie, it only applies to children aged under 7 and born on or after 1 July 1996).

This section is subject to the various limitations on eligibility, including those relating to hours, contained in new Subdivisions F and G.

New Subdivision C - Eligibility of an individual for CCB for a past period for care provided by a registered carer

New section 45 - When an individual is eligible for child care benefit for a past period for care provided by a registered carer

This new section is the equivalent of current section 49. It relates to eligibility for the type of CCB available for a past period for care provided by a registered carer. This type of CCB is similar to the existing childcare rebate arrangements.

Little has changed between the two versions of the provision. However:

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The residence criterion has been relaxed (in line with FTB) so that it is satisfied if the individual, or his or her partner, meet the residence rules for special benefit under the Social Security Act. These are more generous than for family assistance generally and allow the holding of certain visas as Australian residence.

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The immunisation requirement now reflects the policy currently in place for childcare assistance and childcare rebate (ie, it only applies to children aged under 7 and born on or after 1 July 1996).

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It has been spelled out that the care that would attract this type of CCB must not be provided as part of the compulsory education system in the relevant State or Territory. This is to avoid, consistent with existing arrangements, CCB being available in respect of school children on the basis of their teacher becoming a registered carer.

This section is subject to the limitations on eligibility set out in new sections 48 and 49.

New Subdivision D - Eligibility of an individual for CCB by single payment/in substitution because of the death of another individual

New section 46 - Eligibility for CCB if a conditionally eligible or eligible individual dies

This new section is the equivalent of current section 57. It relates to eligibility for the type of CCB available to an individual if another individual has died. The provision has been expanded to recognise that amounts might be payable, not only in respect of the deceased person's eligibility (as currently provided), but also in respect of the deceased person's conditional eligibility, for certain types of CCB. The provision should be available to resolve generally the outstanding entitlement of the deceased person. Any future CCB in relation to the child will be the subject of a new claim by, typically, the person in the family who will now be liable for the child's child care fees.

The first situation covered by the section relates to the deceased person having been eligible for an amount of CCB under new section 43, 44 or 45 (whether or not a claim had been made) and the amount not having been paid. In this case, if an individual makes a claim for so much of the amount as relates to any period falling after the beginning of the income year before the one in which the other individual died, and if the Secretary considers that the individual should be eligible for that much of the amount, then the individual is eligible for it.

The second situation relates to the deceased person having been conditionally eligible under new section 42 for CCB by fee reduction, but not having had his or her entitlement to be paid such CCB determined. In this case, an individual may claim such amount as the deceased person would have been entitled to be paid that relates to any period falling after the beginning of the income year before the one in which the other individual died, and the Secretary may, similarly to the first case, find the individual to be eligible for the amount.

New Subdivision E - Eligibility of an approved child care service for CCB by fee reduction for care provided by the service to a child at risk

New section 47 - When an approved child care service is eligible for CCB by fee reduction for care provided to a child at risk

Current sections 45, 46 and 47 provide a regime by which approved child care services may be eligible (at their own discretion) or conditionally eligible or eligible (at the Secretary's discretion) in respect of a session of care provided by the service to a child at risk of serious abuse or neglect or whose family is in hardship.

This regime is refined in new section 47 to better reflect the way service eligibility will work in practice, and consistent with existing arrangements for childcare assistance.

It will now be the case that the service may be eligible only in child at risk cases. This will always be on the strength of its own belief as to the child being at risk, with the Secretary's role and the technical construction of conditional eligibility removed.

The discretion is available to enable the service to respond immediately to cases in which it is desirable that any cost impediments to a child at risk being placed into child care be removed, even though there may be no individual conditionally eligible to enable the fee reduction process to take place. It should be noted, of course, that the availability of fee reductions is an important element in persuading the child's carer to place the child into care and therefore away from the at risk situation.

Although the service will have autonomy in this regard, and although it will generally be responsible for setting its own rate (see the discussion below on the revised rate provisions) for the first 13 weeks in relation to the child in a financial year, it should be noted that the Secretary will retain the discretion to set the rate for the service after that initial period, and within that period in certain other circumstances. Thus, the Secretary will retain effective control in the longer term on the amount of CCB expended in cases of the service being eligible.

Furthermore, there are offence and debt provisions in the FA Admin Act that will apply should the service exercise its discretions in this area on a false basis.

Generally, however, the service decides on its own eligibility and this is not an issue that the Secretary is able to address in the end of year determination of the service's entitlement to be paid CCB by fee reduction.

It should be noted that the process of the service becoming eligible for the child is merely a mechanism for the fee reduction system to operate. There remains a family, or someone else, who is liable for the fees and, if the rate of fee reductions set by the service or the Secretary is anything less than 100% of the fees charged, then there will be a balance for the family to pay to the service. The service, in the meantime, reimburses itself for the fee reductions by drawing on its regular advance from the Commonwealth, and must account for the expenditure on its next reporting statement (see the discussion under the relevant areas of the FA Admin Act). To this extent, the mechanism is just the same as for conditionally eligible individuals. Again, the service being eligible is merely a mechanism for the fee reduction process to operate, and for it to begin to operate quickly.

It follows that, even when a child becomes at risk, there is no need for the service eligibility mechanism if an individual is already conditionally eligible in respect of the child (in any event, a claim by a service in such a situation would be ineffective - see new section 49M in the FA Admin Act). In that case, fee reductions are already available and the issue becomes one of whether the availability of a higher rate, or more "eligible" hours in a week than would otherwise apply, would relieve the at risk situation in any way. If so, then the service has discretions in those areas even when an individual is conditionally eligible (see the discussion below on the revised rate provisions and the limitations on eligibility relating to the weekly limit of hours).

New Subdivision F - Limitations on conditional eligibility or eligibility for CCB for care provided by an approved child care service or a registered carer that do not relate to hours

This new Subdivision describes the four limitations on conditional eligibility or eligibility for CCB that do not relate to the weekly limit of hours, which is discussed under the next heading. Only one of these limitations does not currently appear in the Family Assistance Act.

New section 48 - No multiple eligibility for same care

This new section makes it clear that the Secretary may decide between two individuals who would otherwise be eligible or conditionally eligible for the same session and the same child, so that only one is eligible or conditionally eligible. The Secretary is bound in such a decision by rules by the Minister (if any) in the form of a disallowable instrument.

This differs from the current section 50 only in the addition of conditional eligibility as a subject for the provision.

New section 49 - Person not conditionally eligible or eligible for CCB if child in care under a welfare law or child in exempt class of children

This new section prevents a person (ie, an individual or a service) from being eligible or conditionally eligible in respect of a child if the child is in care under a welfare law or falls within a class of children specified by the Minister in a disallowable instrument in respect of whom no-one is eligible or conditionally eligible.

This is exactly the same as current section 51.

New section 50 - Person not eligible for CCB while an approved child care service's approval is suspended

This new section provides a new limitation on eligibility that applies should the approval of a service providing care to a child be suspended under the FA Admin Act. While it is already clear from the eligibility provisions for CCB for care provided by an approved child care service that a service's approval must be current for a person to be eligible, this new section serves the specific function of clarifying the period in relation to which the person's eligibility will be limited.

In fact, the limitation on eligibility will apply during the period of the suspension, ie, beginning when the suspension takes effect and ending when the effect of the suspension is ended by the revocation of the suspension. In this regard, it should be noted that a suspension may be revoked with retrospective effect - thus, a person's eligibility would be restored also retrospectively.

New section 51 - Approved child care service not eligible for care provided to a child at risk if Minister so determines

This new section allows the Minister to determine, in a disallowable instrument, specified circumstances in which services' eligibility under new section 47 will be limited to a specified period.

This is the equivalent of current subsections 48(2) and (3).

Revised provisions relating to limitations on eligibility: the weekly limit of hours

New Subdivision G - Limitations on eligibility for CCB for care provided by an approved child care service relating to hours

This new Subdivision addresses the matters currently dealt with by sections 52 to 56 of the Family Assistance Act. The provisions have been rationalised to better reflect the way the limitations on hours arrangements work for childcare assistance, but with a view to how they sit in the new family assistance structure. In particular, the way that the limit works for individuals who are conditionally eligible for CCB by fee reduction has been made clearer.

Furthermore, several elements of the existing arrangements that are not present in the current CCB provisions have been incorporated, ie, 24 hour care, the work/disability test for the limit of more than 50 hours in a week, and how, in the case of the limit of more than 50 hours in a week, the actual number of hours more than 50 in the limit is established.

The basic principle is that, regardless of a person being eligible for CCB (either by fee reduction or for a past period for care provided by an approved child care service), the person can be paid only for up to a certain number of hours in sessions of care provided to a child in a week. The minimum number of hours per week is 20. The most common reason for paying for more hours in a week than this (up to 50) is that the family has work/training/study commitments. However, there is an extensive range of bases for varying the limit that applies to a person, and four distinct levels of limit. Although the full range of bases and levels are available in respect of CCB by fee reduction, not all are available in respect of CCB for a past period.

The limit is imposed not on payment of CCB but on eligibility for CCB. Any person eligible for CCB will be subject to a weekly limit of hours of some type and level.

New section 52 - Limit on eligibility for CCB relating to hours

This new section is the most important in the Subdivision. It sets down the basic principle that, despite an individual or a service (a fee reduction claimant) being eligible for CCB by fee reduction, or an individual (a past period claimant) being eligible for CCB for a past period for care provided by an approved child care service, there is a limit on the number of hours in sessions of care in a week for which the claimant is eligible.

The Subdivision itself is the basis for working out the limit in any given case. Once it is worked out using these substantive provisions, the limit is determined, or taken to have been determined, under the FA Admin Act (in which case, the limit may be varied, or taken to have been varied, under that Act from time to time, particularly to reflect the new application of the Subdivision to any changes in the person's circumstances), or is applied in a determination of entitlement under that Act.

Particular mention is made of the way the limit applies to a fee reduction claimant who is an individual. In this case, the limit is initially determined on claim, once the individual has been determined to be conditionally eligible. The limit is worked out under the Subdivision as if references to an individual being eligible under new section 43 were references to the individual being conditionally eligible under new section 42. The limit applicable to the individual is notified to the individual and to the approved child care service providing the care. The service will apply the limit in working out the amount of fee reductions for the individual throughout the year. The limit, as varied if applicable during the year for various circumstances, will then be applied again after the end of the income year as part of the Secretary's formal determination of the individual's entitlement to be paid CCB.

Exactly which hours, of those in the higher cost sessions of care charged for by a service in a week, count towards the limit of hours applicable to a claimant is a matter addressed by a determination by the Minister under new section 57A.

New section 53 - Weekly limit of hours

The first two subsections of this section set down which limits of hours may be available under the Subdivision to the two different types of claimant covered by the provisions.

A fee reduction claimant may have any one of all four limits applied to him or her, as provided by the Subdivision. In other words, a limit of 20 hours, 50 hours or more than 50 hours may apply, or a 24 hour care limit (see new section 56). In the case of the latter, it is noted that the section does not provide for a 24 hour care limit to apply in respect of care provided by an approved occasional care service.

A past period claimant may have one of only two limits applied -a limit of either 20 or 50 hours.

There is an explicit rule that says that, if a limit of 50 or more than 50 hours or a 24 hour care limit does not apply to a claimant (as applicable) in a week, then a limit of 20 hours applies in that week. Thus, 20 hours in sessions of care per week is the minimum for which a claimant will be eligible. That is, the claimant will generally be paid CCB for the hours charged for by the service in the week up to 20; however, if the claimant was charged only for 10 hours, then only 10 hours will attract CCB.

New subsection 53(4) provides a rule that has the effect that a claimant is not eligible for 24 hour care that is not approved under the Subdivision. Therefore, regardless of which limited number of hours applies at any point in time, the claimant will not be paid CCB for the particular hours falling in a period of unapproved 24 hour care. 24 hour care is discussed in detail under new section 56.

New section 54 - Circumstances when a limit of 50 hours applies

This section operates for the purposes of new sections 52 and 53 to set out the circumstances in which a limit of 50 hours in sessions of care applies in a week to a claimant.

New subsections 54(2) and (3) provide for a limit of 50 hours if the work/training/study test is satisfied (the test is provided by current sections 14 to 17 and disallowable instruments under those sections). In the case of a past period claimant or a fee reduction claimant who is an individual, the test must be satisfied by the claimant and his or her partner (if any). If the fee reduction claimant is an approved child care service (ie, if the service is eligible under new section 47), the test must be satisfied by the individual (and his or her partner, if any) in whose care the child last was before the first session of care in the week.

New subsections 54(4) and (5) provide for a limit of 50 hours if carer allowance for a disabled child is payable. In the case of a past period claimant or a fee reduction claimant who is an individual, the carer allowance must have been determined before, and be payable during, the week to the claimant or his or her partner (if any) in respect of an FTB child of the claimant or partner. If the fee reduction claimant is an approved child care service, the carer allowance must have been determined, and be payable, on the same basis, but to the individual (or his or her partner, if any) in whose care the child last was before the first session of care in the week.

New subsections 54(6) and (7) provide for a limit of 50 hours in respect of disabled persons (a term defined in section 3 - see the discussion under the first heading above). For a past period claimant or a fee reduction claimant who is an individual, both the claimant and his or her partner (if any) must be disabled persons during the week, and the child must be an FTB child of the claimant. If the fee reduction claimant is an approved child care service, the same requirements apply, but they attach to the individual in whose care the child last was before the first session of care in the week and his or her partner (if any).

The 50 hour limit, in the case of the work/training/study test, carer allowance and disabled persons circumstances, always operates on an ongoing basis for a fee reduction claimant who is an individual. However, because a service can be eligible only for a period (because of the fact that its rate, under new sections 76 and 81, can be set only for a specified period), the 50 hour limit under these subsections for a fee reduction claimant that is a service can also only ever be for that specified period.

For a past period claimant, the 50 hour limit, on whatever grounds are available, applies for whichever weeks (in the past period) in respect of which the criteria apply as set out in the various provisions.

New subsections 54(8) and (9) provide for a limit of 50 hours if the Secretary is satisfied that a child needs or needed more than 20 hours' care in a week because of exceptional circumstances. This basis for the 50 hour limit is available only to fee reduction claimants. For a claimant who is an individual, the exceptional circumstances must exist in relation to the claimant. For a claimant that is an approved child care service, the exceptional circumstances must exist in relation to the individual in whose care the child last was before the first session of care in the week.

New subsection 54(10) is the basis for the 50 hour limit that flows from the service (that is providing care to the child) exercising its own discretion, to certify that the child needs or needed more than 20 hours' care in a week, because the child is or has been at risk of serious abuse or neglect. The service may do this whether it is eligible itself under new section 47 or an individual is conditionally eligible under new section 42. The limit is available only to fee reduction claimants.

The service may exercise this discretion in relation to a particular child for a total of up to 13 weeks in a financial year (new subsection 54(11)). After that, the Secretary has a discretion to decide the matter (new subsection 54(12)).

It should be noted that, even though a child may be at risk (whether the service is eligible or an individual is conditionally eligible), there will not necessarily be a certificate given or a decision made under these subsections because the at risk situation will not necessarily be helped by the availability of more than 20 hours' eligibility in a week. For example, a child may be at risk only on Mondays because of the particular drinking habits of one member of the family. If the child already attends care on Mondays, there is no purpose served in approving additional hours of care for the child.

Both the exceptional circumstances and child at risk bases for the 50 hour limit are always for a specified period of a complete number of weeks, starting on a Monday (see items 47 and 48 ).

New subsection 54(13) provides that a 50 hour limit applies in a week to either a fee reduction claimant (individual or service) or a past period claimant if a determination by the Minister is in force during the week under new section 57 in relation to the service providing the care to the child. Such a determination may be in force if the service is the sole provider in an area of the kind of care it provides and would be likely to close if not for the determination. Once such a determination is in place, the effect flows through to all customers of the service (including itself) who are eligible, or conditionally eligible, for CCB so that they have a limit of 50 hours on these grounds.

Because the Minister's determination has to be made for a specified period, the 50 hour limit that flows from it to claimants will also be applicable only on the basis of that specified period.

New subsection 54(14) provides for a 50 hour limit to apply in a week to a past period claimant or to a fee reduction claimant who is either an individual or an approved outside school hours care service if the child to whom the care is provided needs or needed before or after school care during the week and this care is provided by an approved outside school hours care service. Such care would usually be covered adequately by the usual 20 hour limit and it would certainly not be possible to exhaust 50 hours of eligibility on this kind of care. This 50 hour limit therefore effectively means that such care is unlimited. It is intended to apply this provision to every child using before or after school care provided by an approved outside school hours care service.

This particular 50 hour limit operates on an ongoing basis for a fee reduction claimant who is an individual. However, (as mentioned above) because a service can be eligible only for a period, the 50 hour limit under this subsection for a fee reduction claimant that is a service can also only ever be for that period.

New section 55 - Circumstances when a limit of more than 50 hours applies

This section operates for the purposes of new sections 52 and 53 to set out the circumstances in which a limit of more than 50 hours in sessions of care applies in a week to a claimant. Only fee reduction claimants have access to the limit of more than 50 hours.

Unlike the previous section, in which the usual 20 hour limit is lifted so that a person may be eligible for anything up to 50 hours in a week, this limit of more than 50 hours is not at large - the specific criteria in each of the subsections in new section 55 dictate exactly for how many hours the claimant is eligible. This number of hours is recorded when the Secretary notifies (under the FA Admin Act) the claimant, and the service providing the care, of the weekly limit of hours determined for the claimant.

New subsections 55(2) and (3) provide that, if care is or was needed for a child for a particular number of hours in a week more than 50, and if that was the case because the work/disability test is satisfied for the particular number of hours, then a weekly limit of hours applies of the particular number of hours more than 50. If the fee reduction claimant is an individual, the test must be satisfied by the claimant and his or her partner (if any). If the fee reduction claimant is the service, the test must be satisfied by the individual (and his or her partner, if any) in whose care the child last was before the first session of care in the week.

The meaning of the work/disability test is provided by new section 57E. The essence of the test is that neither the individual concerned nor his or her partner (if any) is available to care for the child because of work related commitments (at the same time as each other, in the case of a couple). A modification is made if one member of a couple is a disabled person - in this case, only the other member of the couple needs to be unavailable to care for the child because of work related commitments. The number of hours more than 50 in a week for which this is established in each case is the particular number of hours that constitutes the claimant's weekly limit of hours.

This particular more than 50 hour limit may operate, for a fee reduction claimant who is an individual, either on an ongoing basis or for a specified period. However (as mentioned above under new section 55), because a service can be eligible only for a period, the more than 50 hour limit under these subsections for a fee reduction claimant that is a service can also only ever be for that period.

New subsections 55(4) and (5) provide that, if the Secretary is satisfied that a child needs or needed care in a week for a particular number of hours more than 50 because of exceptional circumstances, then a weekly limit of hours applies of the particular number of hours more than 50. For a fee reduction claimant who is an individual, the exceptional circumstances must exist in relation to the claimant. For a fee reduction claimant that is an approved child care service, the exceptional circumstances must exist in relation to the individual in whose care the child last was before the first session of care in the week.

New subsection 55(6) is the basis for the more than 50 hour limit that flows from the service (that is providing care to the child) exercising its own discretion, to certify that the child needs or needed care in a week for a particular number of hours more than 50, because the child is or has been at risk of serious abuse or neglect. The service may do this whether it is eligible itself under new section 47 or an individual is conditionally eligible under new section 42. If the service exercises the discretion, then a weekly limit of hours applies of the particular number of hours more than 50.

The service may exercise this discretion in relation to a particular child for a total of up to 13 weeks in a financial year (new subsection 55(7)). After that, the Secretary has a discretion to decide the matter (new subsection 55(8)).

As noted above in relation to the 50 hour limit, there will not necessarily be a certificate given or a decision made under these subsections even if a child is at risk. The exercise of the discretion will depend on the whether the aim of removing the child from the at risk situation would be assisted by the exercise of this discretion.

Both the exceptional circumstances and child at risk bases for the more than 50 hour limit are always for a specified period of a complete number of weeks, starting on a Monday (see items 47 and 48 ).

New section 56 - Circumstances when 24 hour care limit applies

A 24 hour care limit is the weekly limit of hours that applies when a fee reduction claimant (24 hour care is not available to a past period claimant) has one or more approved periods of 24 hour care in a week. The limit is effectively the mechanism to approve 24 hour care, and also to suspend the normal weekly limit of hours that would otherwise apply in the week.

New subsections 56(1) and (2) make it clear, however, that a 24 hour care limit (and therefore 24 hour care) is not available, whether to an individual or a service, in respect of occasional care.

The 24 hour care definitions are inserted by items 42, 43, 44 and 48 (see the first heading above). A "24 hour care period" is simply a period of time that is at least 24, but less than 48, consecutive hours (eg, 36 hours would count as one 24 hour care period; 50 hours would count as two 24 hour care periods, as would 65 hours; 75 hours would count as three 24 hour care periods).

The meaning of "24 hour care" is set out in new subsection 3(5). Generally, it is care provided to a child by an approved child care service throughout a 24 hour care period. However, if there is a break, for anything less than half of the period, during which the child is absent from the service's care (eg, to attend school, medical treatment or a sporting activity), it is still 24 hour care as long as the services remains responsible for the child during the break, eg, the service would be the person to be contacted by the school, etc, in the event of an emergency affecting the child). Should the child go back into the care of his or her parent at some stage during the 24 hour care period (eg, should the parent, who may be attending a live-in conference some miles away, take the child out to lunch), the continuity of the 24 hour care period would be broken.

When a claimant has a "24 hour care limit" in a week, the claimant will basically be eligible for approved 24 hour care, and the usual weekly limit of hours will be suspended for other sessions of care in the week. The 24 hour care limit differs from the other weekly limits of hours in that it is not a limit based on a number of hours. It is a limit that relates to particular hours in the week. A 24 hour care limit applicable in a week consists of:

•

the particular hours (as opposed to the number of hours) in any 24 hour care approved, by the service or the Secretary, under new section 56; plus

•

the particular hours in all sessions of care (noting that 24 hour care, like other care, is provided in sessions of care) provided to the child in the week, but not counting the particular hours in those sessions that fall within a 24 hour care period.

The effect of this is that, in a week in which one or more periods of 24 hour care are approved for a claimant, the claimant will be eligible for the hours in that approved 24 hour care, plus whatever other hours were charged for by the service in that week, unless they were unapproved 24 hour care.

Thus, the 24 hour care limit serves the additional purpose of preventing a person, who has approved 24 hour care in a week, from being eligible for unapproved 24 hour care in that week. (The other aspect of this, ie, to prevent a person, who does not have approved 24 hour care in a week, from being eligible for unapproved 24 hour care, is provided by new subsection 53(4).)

New subsections 56(3) and (4) provide the basis for the 24 hour care limit that flows from the service (that is providing care to the child) exercising its own discretion in relation to 24 hour care. Under this, the service may certify that the child needs or needed 24 hour care in a week for one or more 24 hour care periods. The service may do this whether it is eligible itself under new section 47 or an individual is conditionally eligible under new section 42.

If the fee reduction claimant is an individual, the service must make the certification on the basis that neither the claimant, nor his or partner (if any), is able to care for the child during those 24 hour care periods because of their combined work related commitments or because exceptional circumstances exist during those periods. If the fee reduction claimant is the service, then the same criteria apply, but attaching to the individual (and his or her partner, if any) in whose care the child last was before the first session of care in the week.

The service may exercise this discretion in relation to a particular child for a total of up to fourteen 24 hour care periods in a financial year (new subsection 56(5)). After that, the Secretary has a discretion to decide the matter, initially for up to a further fourteen 24 hour care periods in the financial year (new subsections 56(6) and (7)) and for more than that if it is considered essential in the circumstances (new subsection 56(8)).

New section 57 - Minister's determination of sole provider

This section is the basically the same as current subsections 53(3) and (4), except that some machinery provisions have been added.

It provides for the Minister to determine an approved child care service to be the sole provider in an area of the kind of care that it provides. To make such a determination, the Minister must consider that the service would be likely to close if the determination were not made. The determination is in force for a specified period. The consequence of the determination is that all customers of the service (including itself, should it be eligible for CCB by fee reduction), whether fee reduction claimants or past period claimants, have a weekly limit of 50 hours applicable to them under new subsection 54(13).

New section 57A - Minister to determine which hours in sessions of care are to count towards the limits

This section is the new form of current subsections 52(2A) and 54(2A). It provides that the Minister must determine rules relating to how to work out which of the hours in sessions of care in a week are to count towards the limit of 20, 50 or more than 50 hours that might apply to a claimant in a week. Without this stipulation, it may not be possible to calculate the CCB payable for the limited number of hours because the claimant could quite legitimately be charged at different rates for the various sessions. For example, the claimant may use more than one type of approved child care service, in relation to which there may be different standard rates.

In this sense, the sessions of care that would be the subject of the Minister's determination are those in the higher cost category, ie, sessions other than those specified. There is no reason to specify which of the hours in the remaining sessions of care count towards the limits as they all attract the same standard hourly rate.

The Minister's determination is a disallowable instrument (see new section 57D).

New section 57B - Minister may determine rules

This section is the equivalent of current subsection 56(2). It allows the Minister to determine rules relating to the giving of certificates by an approved child care service, or the making of decisions or determinations by the Secretary, under new sections 54, 55 or 56, or the making of the Minister's own determination under new section 57 (sole provider). Also, rules may deal with terms used in the Subdivision, such as "exceptional circumstances" and "work related commitments".

The Minister's determination is a disallowable instrument (see new section 57D).

New section 57C - Certificates to be given and decisions and determinations to be made in accordance with rules

Should any rules be made by the Minister under new section 57B, then this section obliges a decision maker under new section 54, 55, 56 or 57 to act in accordance with the rules. This is the equivalent to current subsection 56(1).

New section 57D - Minister's determinations subject to disallowance

As indicated above, the Minister's determination under new section 57A and any determination under new section 57B is a disallowable instrument under the Acts Interpretation Act 1901 . This is already currently provided in section 56A.

New section 57E - Meaning of work/disability test

This section is discussed above in relation to new subsections 55(2) and (3).

Revised rate provisions, including the special rate applicable for individuals in hardship or children at risk

NEW DIVISION 4 - CHILD CARE BENEFIT

Item 55 repeals the Divisions of the Family Assistance Act currently relating to the rate of CCB and family assistance indexation and substitutes new Divisions 4 and 5 of Part 4.

New Subdivision A - Overview of Division

New section 69 - Overview of Division

This section describes the way the Division is organised.

New Subdivisions B and C deal with the rate of fee reductions and CCB if care is provided by an approved child care service.

New Subdivision B provides general provisions relating to rate in respect of CCB by fee reduction and CCB for a past period for care provided by an approved child care service. In particular, it sets out when the rate in respect of CCB by fee reduction is calculated using the CCB Rate Calculator and when it is calculated using new Subdivision C. In the case of CCB for a past period, the rate is always worked out using the CCB Rate Calculator.

New Subdivision C deals with the special rate applicable when a child is at risk of serious abuse or neglect or when a child's family is in hardship. Such a rate may be at the discretion of either an approved child care service or the Secretary, as provided. A rate may be set on this basis either when an individual is conditionally eligible or when the service is eligible under new section 47.

The formal rate of CCB for sessions of care provided during an income year, in respect of an individual eligible for CCB by fee reduction under new section 43 or a service eligible for CCB by fee reduction under new section 47, is generally worked out after the end of the income year. However, the formal rate for certain sessions is generally set during the year, while the individual is conditionally eligible. These sessions are those in relation to which a special rate on the basis of hardship or child at risk is certified by the service providing the care, or determined by the Secretary, under new Subdivision C. These formal rate determinations or certifications are applied by the Secretary in the determination under the FA Admin Act of the person's entitlement to be paid CCB.

Meanwhile, for sessions during the year other than these special rate sessions, the service works out a rate on the basis of the usual rate calculation rules contained in the Family Assistance Act, and uses this rate to work out the amount by which the individual's fees are to be reduced for each session. (In working out the rate in this way, the service must apply the Secretary's determinations of the individual's CCB % and schooling % notified to the service under the FA Admin Act.) It is one of the service's obligations to work out the individual's rate in this way, as provided by the FA Admin Act. In this Division, the rate worked out in this way is referred to as the "rate of fee reductions". Other references to the "rate of CCB" mean the formal working out of the rate, either after the end of the year or under new Subdivision C.

New Subdivision D deals with the rate of CCB if care is provided by a registered carer.

New Subdivision B - General provisions relating to rate

New section 70 - Application of Subdivision to parts of sessions of care

This section makes it clear that the Subdivision applies to a rate of fee reductions or CCB for a part of a session of care as if a reference to a session included a reference to a part of a session. This basic rule is present in current section 69.

New section 71 - Weekly limit on CCB for care provided by an approved child care service

This section limits the amount of CCB for sessions of care for which a person is eligible in a week. The general principle is that the limit is the service's normal fees for the sessions.

The fact that the limit is worked out on the basis of the sessions of care for which the person is eligible takes account of the weekly limit of hours (which is an element of eligibility), so that this limit on the amount of CCB does not allow more CCB than is envisaged by the weekly limit of hours. For example, if a person has a limit of 20 hours, the amount of CCB for the week is limited to the service's normal fees for up to 20 hours only.

For an individual eligible for sessions of care under new section 43(by fee reduction), the limit is the amount that the service would have charged for the sessions if the individual were not so eligible.

For an individual eligible for sessions of care under new section 44 (for a past period), the limit is the amount charged by the service for the sessions.

For a service eligible for sessions of care under new section 47 (by fee reduction - child at risk), the limit is the amount that the service would otherwise have charged the individual in whose care the child last was before the first session in the week for the sessions.

This limit affects a special rate set under new Subdivision C as well as a rate worked out under the CCB Rate Calculator.

New section 72 - Weekly limit on rate of fee reductions while individual is conditionally eligible for care provided by an approved child care service

This section provides a rule comparable to new section 71, but in relation to the rate of fee reductions worked out by the service for a week, during the year, for an individual who is conditionally eligible. Again, the principle is that the rate so worked out is limited to the service's normal fees for the sessions of care provided in the week. Furthermore, the effect of the weekly limit of hours is again taken into account so that the limit operates correctly.

The rate in this case is not to exceed the amount that the service would have charged the individual if he or she were not so conditionally eligible, up to the weekly limit of hours determined to be applicable to the individual.

New section 73 - Rate of fee reductions or CCB - individual conditionally eligible or eligible under section 43

This section sets down which of the various provisions relating to the rate of fee reductions or CCB for a session of care is to be applied in various circumstances of an individual being conditionally eligible or eligible for CCB by fee reduction.

In the case of a conditionally eligible individual, the service must generally work out the rate of fee reductions using the CCB Rate Calculator and, in doing so, must apply any references in the Calculator to a person being eligible as if they were references to the person being conditionally eligible. It must also apply any references to CCB as references to fee reductions. However, the CCB Rate Calculator is not to be used if the service has certified, or the Secretary has determined, a special rate under new Subdivision C in relation to the individual and the session. In that case, the rate of fee reductions for the session is simply the rate specified in the certificate or determination.

In the case of an eligible individual, the Secretary must generally work out the rate of CCB using the CCB Rate Calculator. However, if a certificate was given, or a determination was made, under new Subdivision C, in respect of the session while the individual was conditionally eligible, then the rate of CCB for the session remains the rate specified in the certificate or determination. Thus, the rate certified or determined generally during the year for the session will be applied in the Secretary's determination of the individual's entitlement to be paid CCB.

As noted in the section, whatever rate applies, new section 71 or 72, as applicable, imposes a limit on the amount or rate of CCB in a week.

New section 74 - Rate of CCB - individual eligible under section 44

This section provides the simpler rule that the rate of CCB for an individual who is eligible for the lump sum type of CCB for care provided by an approved child care service is worked out using the CCB Rate Calculator. The rate so worked out is applied in the determination of the individual's entitlement to be paid CCB. Again, it is noted that a limit is imposed by new section 71on the amount of CCB in a week.

New section 75 - Rate of CCB - approved child care service if child at risk

The rate that applies to an approved child care service that is eligible for CCB by fee reduction under new section 47 is set, usually for an initial 13 week period, by the service under new subsection 76(2), or by the Secretary under new subsection 81(4). Again, the rate so set is applied in the determination of the service's entitlement to be paid CCB, and, again, the effect of the weekly limit is noted.

New Subdivision C - Rate of fee reductions and CCB if care provided by an approved child care service and child is at risk or individual is in hardship

New section 76 - Fee reductions or CCB rate certified by an approved child care service

This is the section under which an approved child care service has the discretion to certify a special rate of fee reductions or CCB.

If an individual is conditionally eligible and the service is satisfied either that the individual is experiencing hardship (as envisaged by the Minister's determination under new paragraph 82(3)(a)) or that the child is at risk of serious abuse or neglect, then the service generally may certify a special rate, higher than the one that would normally apply, for sessions of care falling within the period specified in the certificate. The idea is that the service would exercise the discretion if satisfied that the availability of a higher rate would assist the hardship or at risk situation.

However, the service may not give a certificate if prevented by new section 77, 78, 79 or 80.

If the service itself is eligible in respect of a child at risk, then the service must certify a rate as there is no current rate that would normally apply. However, new section 77 or 79 may prevent the service from giving such a certificate.

If, for some reason, the service is not able to give a certificate under the section, the situation may be addressed by the Secretary under new section 81.

The provisions in this Subdivision are generally reproduced from current section 71. However, the limitations under new sections 79 and 80 on the exercise of the service's discretion are new, although that provided by new section 79 is a feature of existing childcare assistance arrangements. Otherwise, some drafting modifications have been made (in particular, to clarify how the system works while an individual is conditionally eligible) and some machinery provisions added.

New section 77 - Limitation on service giving certificates for child at risk - 13 weeks only

This section is one of the limitations on the service's discretion under new section 76. It applies in relation to a child at risk. The service may only give a certificate on this basis (whether an individual is conditionally eligible or the service is eligible) if the total period for which one or more certificates have been given on the basis of the child being at risk does not exceed 13 weeks in the financial year.

If the service is not able to give a certificate because of this limitation, the matter may be determined by the Secretary under new section 81.

New section 78 - Limitation on service giving certificates for individual in hardship - 13 weeks only

This limitation on the service's discretion under new section 76 applies in relation to an individual experiencing hardship. The service may only give a certificate on this basis in relation to the individual if the total period for which one or more certificates have been given by the service on either the hardship or child at risk basis, together with certificates given by any other approved child care service on the hardship basis alone, in relation to the child and the financial year does not exceed 13 weeks.

If the service is not able to give a certificate because of this limitation, the matter may be determined by the Secretary under new section 81.

New section 79 - Limitation on service giving certificates - reporting period limit

This section limits the service's discretion under new section 76 in relation either to children at risk or hardship. If the service has already exercised, during a particular reporting period, its discretion under new section 76 to the extent that the total amount of CCB resulting from that exercise of the discretion exceeds the reporting period limit for that reporting period, then the service may not exercise the discretion any further in that period. In other words, if the service makes a decision under the section that takes it over its reporting period limit, then that decision remains valid, but it may not make a further decision.

The meaning of "reporting period limit" is provided by new subsections 79(2) to (4). It is 18% (or such higher percentage as is specified) of the total amount of fee reductions, or CCB payable, as the case may be, in relation to all care provided by the service during the reporting period that is two periods before the reporting period in respect of which the limit is being worked out. Where a service needs more than the 18% they should approach the Family Assistance Office which will agree to increase this amount if the service can show that they have a genuine need for this.

Alternatively, the Secretary may determine a specific limit for a service for the reporting period. This may be done, for example, for new services, which do not have a pattern of two or more reporting periods on which to base the limit.

If the service is not able to give a certificate because of this limitation, the matter may be determined by the Secretary under new section 81.

New section 80 - Limitation on service giving certificates for individuals on grounds of hardship - Secretary imposes limit

This is the last of the limitations on the service's discretion under new section 76. It applies only in relation to hardship. Basically, the Secretary may determine that the service may no longer exercise the discretion for any conditionally eligible individuals on the grounds of hardship if it has shown a pattern, in its previous exercise of the discretion on those grounds, that is not in keeping with the Minister's hardship specifications, under new paragraph 82(3)(a), or rules, under new paragraph 82(3)(b).

If the service is not able to give a certificate because of this limitation, the matter may be determined by the Secretary under new section 81.

New section 81 - Fee reductions or CCB rate determined by the Secretary

Under this section, the Secretary has the discretion to determine a special rate of fee reductions or CCB in cases of an individual experiencing hardship or a child being at risk of serious abuse or neglect.

Generally, the Secretary will exercise the discretion only after the approved child care service providing care to the child has exercised its own discretion in the same cases, usually for a total of 13 weeks for the child in a financial year. In cases in which the service is not able to exercise its discretion (under new section 77, 78, 79 or 80), the matter may be addressed as soon as necessary by the Secretary instead.

The Secretary may determine such a special rate (higher than the rate that would normally apply) when an individual is conditionally eligible for CCB by fee reduction. The Secretary must determine such a special rate when it is the service that is eligible under new section 47. This is so because there is no current rate that would normally apply.

As is the case with the service's discretion under new section 76, the Secretary would only exercise the discretion in respect of a conditionally eligible individual if satisfied that the availability of a higher rate would assist the hardship or at risk situation.

A determination under the section must be made on application by the individual or service, as set out in new subsection 81(5). The rate must be specified for a period, and be notified to the individual and/or the service as set out in new subsections 81(8) and (9).

New section 82 - Certificate and determination to be made according to rules

This section stipulates that any certificates given, or determinations made, under the section are to abide by any rules made by the Minister on the subject. The Minister may also specify kinds of hardship for the purposes of the provisions. Any determination by the Minister under this section is a disallowable instrument under the Acts Interpretation Act 1901 .

New Subdivision D - Care provided by registered carer

New section 83 - Rate of CCB for care provided by registered carer

This section provides for the rate of CCB for care provided by a registered carer. It differs from the current section 73 in that schooling % is reflected as part of the formula. This component ensures that the rate for a school child is proportionately less than the rate for a child who is not a school child. This, in turn, is in line with the arrangements for care provided by an approved child care service, so that families in similar situations in terms of income and family composition will be treated comparably, regardless of which type of care is used.

New section 84 - Weekly limit on CCB for care provided by a registered carer

This section, limiting the amount of CCB for care provided by a registered carer in a week, is the same as the current section 74, except for consequential changes flowing from new section 83.

NEW DIVISION 5 - INDEXATION

Item 55 also reinserts unchanged the one section (new section 85) of the current Division 5 of Part 4. The reason for the repeal and substitution was merely a practical exercise to allow the numbering of the new Division 4 to be made sequential, since this section is the last in the Family Assistance Act.

Amendments to the Child Care Benefit Rate Calculator

Part-time %

Item 56 repeals the existing definition of part-time % in subclause 2(2) of the CCB Rate Calculator. Part-time % is a 10% loading on the rate of CCB for care provided by a centre based long day care service, because of the higher hourly fees that apply for part-time care in such a centre. The current definition benefits families using less than 34 hours of care in a week. The substituted definition essentially applies a taper to the loading so that families using less than 34 hours of care continue to get the 10% loading but families using 34 to 37 hours get a lesser loading so that they do not get less CCB in total than those using 33 hours.

Rate for children in a family after the third

Items 62 and 64 amend the maximum weekly benefit table in clause 11 of the CCB Rate Calculator to ensure that the rate for children in a family after the third will be the same as for the first three children. The current clause increases the CCB hourly rate for the second and third child over that for a one child family, but then reduces it back to the one child rate for the fourth and subsequent children This means that larger families are at a disadvantage. The new element of the loading will also be indexed on the same basis as the other rate elements for multiple children.

Other technical and consequential amendments

The remaining items are minor amendments to refine terminology and drafting and (in the case of item 68 ) to reflect the multiple child % as an element of the minimum CCB provision, in line with the original policy (so that families benefit from a higher minimum rate for each additional child in the family in care).