Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007 (118 of 2007)

Schedule 1   Amendments relating to Child Care Management System

Part 1   Amendments

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

44   After section 87A

Insert:

87B Setting off debts of an approved child care service against amounts to be paid to the service in respect of fee reduction

(1) This section applies to a debt owed by an approved child care service if, under section 82, the debt is recoverable by the Commonwealth by means of setting off the debt against amounts to be paid under section 219Q or subsection 219QA(2) in respect of fee reduction.

(2) The debt is to be set off, against the amount paid to the service in respect of fee reduction, in the following way:

(a) the Secretary is to determine the amount by which each amount paid to the service in respect of a fee reduction is to be reduced;

(b) each amount paid to the service in respect of a fee reduction is to be reduced by the amount determined by the Secretary until the sum of those amounts and any amounts by which the advance is reduced under section 87A is equal to the debt.

The Secretary may, from time to time, vary the amount by which the amounts paid to the service in respect of fee reduction are to be reduced.

(3) The amount of the debt and the amounts paid to the service in respect of fee reduction are reduced accordingly.