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

90   Division 2 of Part 8A

Repeal the Division, substitute:

Division 2 - Weekly payments in respect of fee reduction to approved child care services

219Q Weekly payments in respect of fee reduction

(1) If the Secretary, under section 50Z or 50ZB, calculates the amount in which the Secretary considers fee reduction is applicable in respect of a session or sessions of care provided by an approved child care service to a child in a week, the Secretary must pay the amount calculated to the credit of a bank account nominated and maintained by the service.

(2) If the Secretary, on recalculating under section 50ZA or 50ZC the amount in which the Secretary considers fee reduction is applicable in respect of a session or sessions of care provided by an approved child care service to a child in a week, increases the amount, the Secretary must pay to the credit of a bank account nominated and maintained by the service an amount equal to the increase.

(3) This section is subject to:

(a) Part 4 (overpayments and debt recovery); and

(b) section 219QA (set off where amount of applicable fee reduction reduced on recalculation); and

(c) section 219RC (set off where enrolment ceases); and

(d) paragraph 200(1)(h) (suspending payment in respect of fee reduction).

219QA Payments and set offs where recalculation results in reduced fee reduction

(1) This section applies if:

(a) the Secretary, on recalculating under section 50ZA or 50ZC the amount in which the Secretary considers fee reduction is applicable in respect of a session or sessions of care provided by an approved child care service to a child in a week, reduces the amount; and

(b) the amount is reduced because of the substitution or withdrawal by the service of a report given under section 219N.

(2) The Secretary must pay the amount as last recalculated to the credit of a bank account nominated and maintained by the service.

(3) The amount as calculated, or recalculated, immediately before the last recalculation must be set off against a later payment to the service of an amount in respect of:

(a) one or more payments under section 219Q or subsection 219QA(2) in respect of fee reduction; or

(b) one or more enrolment advances under section 219RA.

219QB Remitting amounts that cannot be passed on

(1) If:

(a) either:

(i) an amount is paid to an approved child care service under section 219Q in relation to a session of care provided by an approved child care service to a child in a week; or

(ii) such an amount would be paid, but for a set off under subsection 82(2) or section 219QA or 219RC or the imposition of a sanction under paragraph 200(1)(h); and

(b) it is not reasonably practicable for the service to pass on to the claimant or the service itself within the time required under subsection 219B(2) or 219BA(2) the fee reduction in respect of which the amount was or would have been paid;

the service must immediately remit to the Secretary an amount equal to the amount that could not be passed on.

Penalty: 60 penalty units.

(2) The amount must be remitted in the manner or way approved by the Secretary.

(3) The service must notify the Secretary of the remittal of the amount.

(4) The notice must:

(a) be given in the form, and in the manner or way, approved by the Secretary; and

(b) include any information required by the Secretary.

Division 3 - Enrolment advances

219R Election to receive enrolment advance

(1) An approved child care service, other than an approved occasional care service, may, when giving notice in accordance with section 219A, elect to receive the payment of an enrolment advance in relation to the enrolment.

(2) The election must:

(a) be given in the form, and in the manner or way, approved by the Secretary; and

(b) include any information required by the Secretary.

219RA Enrolment advance must be paid if service elects to receive it

(1) If an approved child care service, other than an approved occasional care service:

(a) makes an election in accordance with section 219R in respect of an enrolment; and

(b) the Secretary confirms the enrolment under section 219AE;

the Secretary must pay the amount of the advance to the credit of a bank account nominated and maintained by the service.

(2) This section is subject to:

(a) Part 4 (overpayments and debt recovery); and

(b) section 219QA (set off where amount of applicable fee reduction reduced on recalculation); and

(c) section 219RC (set off where enrolment ceases); and

(d) paragraph 200(1)(f) (withholding enrolment advances).

(3) The Secretary must give the service notice of the payment.

(4) Notice of the payment must be given in the form, and in the manner or way, approved by the Secretary.

219RB Amount of enrolment advances

(1) The Secretary may, by legislative instrument, determine the amount of the enrolment advance that may be paid in respect of enrolments of a specified class.

(2) Without limiting subsection (1), the Secretary may provide for the indexation of enrolment advances.

219RC Setting off enrolment advance when enrolment ceases

If an enrolment ceases in respect of which:

(a) an enrolment advance was paid; or

(b) an enrolment advance would have been paid but for a set off under subsection 82(2) or section 219QA or 219RC or the imposition of a sanction under paragraph 200(1)(f);

the Secretary must set off an amount equal to the amount of the enrolment advance against:

(c) any other enrolment advance that is to be paid to the service; or

(d) any fee reduction that is to be paid to the service in relation to that or another enrolment.