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

PART 8A - PROVIDER REQUIREMENTS AND OTHER MATTERS  

Division 2 - Requirements in relation to CCS and ACCS by fee reduction  

SECTION 201BA   Provider may allow discount for care provided to child of educator or cook engaged by provider  

201BA(1)    
A provider to whom a notice is given of a fee reduction decision referred to in item 1 or 2 of the table in subsection 67EB(2) for an individual, for sessions of care provided by a child care service to a child in a week, may allow the individual, or the individual ' s partner, a discount (a permissible staff discount ) on the pre-discount fee for the week for the individual, or the individual ' s partner, if:

(a)    the individual, or the individual ' s partner, is employed, contracted or otherwise engaged at a child care service by the provider, for any period during that week, as an educator (within the meaning of the Education and Care Services National Law) or a cook; and

(b)    the child care service referred to in paragraph (a) is not a family day care service or an in home care service.

Note:

For pre-discount fee , see subsection (4) .


201BA(2)    
The permissible staff discount that may be allowed to the individual, or the individual ' s partner, for the week under subsection (1) must not be more than 95% of the pre-discount fee for that week for the individual or the individual ' s partner.

201BA(3)    
If the provider allows the individual, or the individual ' s partner, a permissible staff discount under subsection (1) , the amount of the discount is not recoverable from the individual or the individual ' s partner.

Note:

Providing care of a child in a child care facility to a current employee at a discount may not attract fringe benefits tax in some circumstances: see subsection 47(2) of the Fringe Benefits Tax Assessment Act 1986 .



Meaning of pre-discount fee

201BA(4)    
For the purposes of this section, the pre-discount fee for the week for the individual, or the individual ' s partner, is the difference between:

(a)    the total of the hourly session fees for all sessions of care provided by the child care service to the child in the week; and

(b)    the sum of:


(i) the fee reduction amount for the fee reduction decision for the individual in relation to those sessions of care; and

(ii) the amount of any payment prescribed by the Minister ' s rules for the purposes of paragraph 2(2A)(c) of Schedule 2 to the Family Assistance Act that the individual benefited from in respect of those sessions of care.


 

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