House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Early Childhood Education, Childcare and Youth the Honourable Kate Ellis MP)

Schedule 3 - Suspension of approved child care services' approvals

Summary

This Schedule amends the Family Assistance Administration Act to change section 219TSQ requiring automatic suspension of a child care service's approval for the purposes of the family assistance law where the service is given 10 infringement notices within a period of 12 months for contraventions of civil penalty provisions. The amendment results in the suspension being changed from a mandatory suspension to a discretionary suspension.

Background

Currently, section 219TSQ requires the Secretary to suspend a child care service's approval for the purposes of the family assistance law if 10 infringement notices are issued to the operator in relation to the service's contraventions of a civil penalty provision (as defined in section 3 of the Family Assistance Administration Act) within a period of 12-months. Section 219TSQ has not yet had any application.

Explanation of the changes

Suspension of a service's approval affects the individuals using the service (neither CCB fee reductions nor CCR can be paid in respect of child care provided by the service during the period of suspension). It is therefore considered more appropriate for the suspension to be applied flexibly, at the Secretary's discretion, rather than to be mandatory.

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

Item 1 - Subsection 219TSQ(1)

Item 1 amends subsection 219TSQ(1) by replacing the word "must" with the word "may". The amendment results in the Secretary being provided with a discretion to suspend a child care service's approval where the service is given 10 infringement notices under section 219TSI within a period of 12 months and, in relation to each notice, the time for paying the penalty imposed has ended before the end of the 12-month period.

Item 2 - Application

Item 2 is an application provision. It provides that the amendment made by Item 1 applies in relation to:

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infringement notices given on or after the commencement of Item 1 ; and

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infringement notices given before the commencement of Item 1 , other than where the conditions for the requirement to suspend a service's approval in relation to such notices were satisfied prior to that commencement.

That is, if 10 infringement notices were given before the commencement and, for each of those notices, the time given to pay the penalty specified in the notice has passed before the commencement, section 219TSQ providing for a mandatory suspension applies. In any other situation, section 219TSQ as amended, providing for a discretionary suspension, applies.