Family Assistance Legislation Amendment (Jobs for Families Child Care Package) Act 2017 (22 of 2017)

Schedule 1 Main amendments

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

92 After Part 3

Insert:

Part 3A - Payment of child care subsidy and additional child care subsidy

Division 1 - Introduction

67AA Simplified outline of this Part

Individuals must make a claim for CCS in order to become entitled to be paid CCS or ACCS in relation to child care provided to a child.

In order to become entitled to be paid ACCS (grandparent) or ACCS (transition to work), an application is needed as well as the claim for CCS.

The Secretary will determine whether an individual is eligible for CCS for a child. If the individual is eligible, weekly determinations are then made about how much (if any) CCS or ACCS is to be paid each week.

Weekly payments are mostly made via the child care service provider, who will pass them on to the individual (usually as a fee reduction).

Broadly, recipients of CCS and ACCS have responsibilities to keep the Secretary informed about changes in their circumstances that might affect their eligibility for or entitlement to CCS or ACCS, and to respond to requests for information.

An approved provider who is eligible for ACCS (child wellbeing) for a child does not need to make a claim, but does need to make a declaration in order to become entitled to be paid the ACCS. Providers also have responsibilities to keep the Secretary informed and respond to requests for information.

It is also possible for individuals to claim CCS or ACCS in substitution for an individual who has died. If an individual is entitled to be paid such an amount, it is paid directly to the individual.

Note: For the constitutional basis of the provisions of this Act in relation to child care subsidy and additional child care subsidy (including provisions in relation to approved providers), see section 85AB of the Family Assistance Act.

67AB Forms of CCS and ACCS

(1) An individual may, in accordance with this Part, become entitled to be paid:

(a) CCS by fee reduction;

(b) ACCS by fee reduction;

(2) An approved provider may, in accordance with this Part, become entitled to be paid ACCS (child wellbeing).

Division 2 - Making claims

67BA Simplified outline of this Division

Claims for CCS must include particular information and be made in a particular way. Among other things, information is needed about bank account details and tax file numbers.

A claim that does not meet the requirements is taken not to have been made.

67BB Need for a claim

The only way that an individual (other than an approved provider) can become entitled to be paid CCS or ACCS is to make a claim in respect of a child for CCS in accordance with this Division.

Note 1: As well as making a claim for CCS, an individual who wants to be paid ACCS (grandparent) or ACCS (transition to work) must apply for that kind of ACCS. See paragraphs 67CD(4)(a) and (6)(a).

Note 2: An approved provider does not have to make a claim to be entitled to be paid ACCS (child wellbeing), but does need to make a declaration. See paragraph 67CH(1)(c).

67BC Who can claim

The only persons who can make a claim for CCS in accordance with this Division are individuals.

67BD Kinds of claims

An individual may make a claim in respect of a child for CCS:

(a) by fee reduction; or

(b) in substitution for an individual who has died.

67BE When a claim is effective

A claim made by an individual in respect of a child for CCS is effective if:

(a) the claim is made in a form and manner approved by the Secretary; and

(b) the claim contains the information, and is accompanied by the documents, required by the Secretary; and

(d) unless paragraph (e) applies - the tax file number requirements in section 67BH are met for the purposes of the claim; and

(e) if the claim is for CCS in substitution for an individual who has died - the tax file number requirements in section 67BI are met for the purposes of the claim; and

(f) if the claim is for CCS in substitution for an individual who has died - the claim is made before the end of the income year after the income year in which the individual died; and

(g) any other requirements in the Secretary's rules are met; and

(h) no other provision in this Division prevents the claim being effective.

67BF Claims that are taken not to have been made

(1) A claim that is not effective is taken not to have been made.

(2) A claim is taken not to have been made if:

(a) in the claim, the individual makes a statement referred to in subparagraph 67BG(1)(a)(ii) (about providing bank account details); and

(b) at the end of the 28 days after the day the claim is made, the individual has not provided the details; and

(3) A claim is taken not to have been made if:

(a) in the claim or in a document accompanying it, an individual makes a statement referred to in paragraph 67BH(1)(b) or (c) or 67BI(1)(b) or (c) (about providing tax file number details); and

(b) at the end of the 28 days after the claim is made, the Commissioner of Taxation has not told the Secretary what the individual's tax file number is; and

67BG Bank account requirements

For purposes of claim

(1) The bank account requirements are met for the purposes of a claim made by an individual if:

(a) in the claim, the individual:

(i) provides details of a bank account, maintained by the individual alone or jointly with someone else, into which amounts of CCS or ACCS can be paid; or

(ii) makes a statement that he or she will provide details of such a bank account within 28 days after the claim is made; or

(b) the Secretary is satisfied that it is appropriate to exempt the individual from the requirement in paragraph (a).

For purposes of determination

(2) The bank account requirements are met for the purposes of a determination under Division 3 for an individual if:

(a) the Secretary has the details of a bank account, maintained by the individual alone or jointly with someone else, into which amounts of CCS or ACCS can be paid; or

(b) paragraph (1)(b) applies.

67BH Tax file number requirements - CCS by fee reduction

For purposes of claim

(1) The tax file number requirements in this section are met for the purposes of a claim if one of the following statements is made in relation to each TFN claim person:

(a) a statement, by the claimant, of the TFN claim person's tax file number;

(b) a statement, by a TFN claim person, that the TFN claim person:

(i) has a tax file number and has asked the Commissioner of Taxation to tell the person what it is; and

(ii) authorises the Commissioner of Taxation to tell the Secretary whether the person has a tax file number and, if the person has, what it is;

(i) has an application for a tax file number pending; and

(ii) authorises the Commissioner of Taxation to tell the Secretary the outcome of the application (including if the person withdraws the application).

(2) A statement referred to in subsection (1) must be made:

(a) if made by the claimant - in the claim; and

(b) otherwise - in a document accompanying the claim in a form approved by the Secretary.

(3) Subsection (1) does not apply in relation to a TFN claim person if the Secretary:

(a) is satisfied that the TFN claim person is or was the claimant's partner and that the claimant can obtain from the person neither the person's tax file number nor a statement referred to in paragraph (1)(b) or (c); and

(b) makes a written determination to that effect.

(4) A determination made underparagraph (3)(b) is not a legislative instrument.

For purposes of determination

(5) The tax file number requirements in this section are met for the purposes of a determination under Division 3 for an individual if one of the following applies in relation to all TFN determination persons:

(a) the Secretary knows the TFN determination person's tax file number;

(b) a determination made under paragraph (3)(b) is in effect in relation to the TFN determination person.

67BI Tax file number requirements - CCS in substitution for an individual who has died

For purposes of claim

(1) The tax file number requirements in this section are met for the purposes of a claim if one of the following statements is made in relation to each TFN substitution person:

(a) a statement, by the claimant, of a TFN substitution person's tax file number;

(b) a statement, by a TFN substitution person who was the deceased individual's partner, that the person:

(i) has a tax file number and has asked the Commissioner of Taxation to tell the person what it is; and

(ii) authorises the Commissioner of Taxation to tell the Secretary whether the person has a tax file number and, if the person has, what it is;

(i) has an application for a tax file number pending; and

(ii) authorises the Commissioner of Taxation to tell the Secretary the outcome of the application (including if the person withdraws the application).

(2) A statement referred to in subsection (1) must be made:

(a) if made by the claimant - in the claim; and

(b) otherwise - in a document accompanying the claim in a form approved by the Secretary.

(3) Subsection (1) does not apply in relation to a TFN substitution person if the Secretary:

(a) is satisfied that the claimant does not know the TFN substitution person's tax file number and cannot obtain a statement referred to in paragraph (1)(b) or (c); and

(b) makes a written determination to that effect.

(4) A determination made underparagraph (3)(b) is not a legislative instrument.

For purposes of determination

(a) the Secretary knows the TFN substitution person's tax file number;

(b) a determination made under paragraph (3)(b) is in effect in relation to the TFN substitution person.

Division 3 - Determinations

Subdivision A - Entitlement to be paid CCS or ACCS

67CA Simplified outline of this Division

An individual or an approved provider who is eligible for CCS or ACCS is only entitled to be paid CCS or ACCS if the Secretary has made a determination to that effect.

For individuals who claim in respect of a child for CCS by fee reduction, the Secretary will make an initial determination of the individual's eligibility for CCS for the child. Once this is in effect, determinations are made, for each week, about the individual's entitlement to CCS or ACCS that week.

To be entitled to be paid for a week, the individual must:

(a) be eligible for CCS or ACCS (generally); and

(b) meet some additional entitlement conditions.

The additional entitlement conditions mean that not everyone who is eligible for CCS or ACCS will be entitled to be paid for every week. In particular, individuals need to have met the CCS reconciliation conditions for previous income years for which they were entitled to CCS (usually these conditions are met by obtaining a timely tax assessment) and to have kept the Secretary up to date about changes affecting eligibility or entitlement.

Even if the Secretary determines that an individual is entitled to be paid CCS for a week, the individual might later have to repay the CCS if the individual does not meet the CCS reconciliation conditions in time. (This does not apply to ACCS.)

Determinations are also made each week in relation to an approved provider's entitlement to be paid ACCS (child wellbeing) for a child.

One-off determinations are made in relation to an individual's entitlement to be paid CCS or ACCS in substitution for an individual who has died.

67CB Entitlement to be paid CCS or ACCS

(1) An individual or an approved provider is only entitled to be paid CCS or ACCS if the Secretary has made a determination to that effect under this Division.

(2) The Secretary is to make determinations under this Division on the basis of the information available to the Secretary at the time of making the determination.

Note: Part 5 provides for review of determinations, including in relation to the use of information in circumstances where information becomes available after a determination is made.

(3) At any time, an individual or an approved provider is entitled to be paid, in accordance with this Part, the amount of CCS or ACCS (if any) for a week specified in whichever child care decision is in effect at the time for the week.

(4) However, an individual who is entitled to be paid CCS for sessions of care provided to a child in a week:

(a) ceases to be entitled to be paid that CCS, and is taken never to have been entitled to be paid that CCS, if the individual has not met the CCS reconciliation conditions, for the income year in which the CCS fortnight that includes the week starts, by the first deadline for the income year; and

(b) cannot again become entitled to be paid that CCS if the individual does not meet the CCS reconciliation conditions for the income year by the second deadline for the income year.

Note: See section 105E for the determinations the Secretary is required to make in these circumstances.

(5) Subsection (4) applies despite any other provision of this Act or the Family Assistance Act or any determination in effect to the contrary.

Subdivision B - Determinations for individuals claiming CCS by fee reduction

67CC Determination of individual's eligibility for CCS by fee reduction

Determination on effective claim

(1) If an individual makes an effective claim in respect of a child for CCS by fee reduction, the Secretary must determine:

(a) if, when making the determination, the Secretary is satisfied that the requirements in subparagraphs 85BA(1)(a)(i) to (iv) of the Family Assistance Act are met in relation to the claim - that the individual is eligible for CCS by fee reduction for the child; and

(b) if not so satisfied - that the individual is not eligible for CCS by fee reduction for the child.

Cessation of eligibility

(2) The Secretary may determine that an individual for whom a determination under paragraph (1)(a) is in effect in relation to a child is not eligible for CCS by fee reduction for the child, if any of the following apply:

(a) the Secretary is satisfied that the individual has ceased to be eligible, and is not reasonably likely to become eligible again, for CCS by fee reduction for sessions of care provided to the child;

(b) the Secretary has made determinations under subsection 67CD(8) (the individual is not entitled to be paid CCS or ACCS for sessions of care provided to the child) for at least 52 consecutive weeks (otherwise than because of subsection 105E(2));

(c) the child ceased to meet the immunisation requirements in section 6 of the Family Assistance Act more than 63 days ago.

Cessation of eligibility on request

(3) The Secretary may determine that an individual for whom a determination under paragraph (1)(a) is in effect in relation to a child is not eligible for CCS by fee reduction for the child, if the individual requests the Secretary, in a form and manner approved by the Secretary, to do so. The Secretary may make the determination despite the individual being eligible.

Date of effect

(4) A determination made under paragraph (1)(a):

(a) takes effect on the day specified in the determination, which must be the first day for which the Secretary is satisfied that the requirements in subparagraphs 85BA(1)(a)(i) to (iv) of the Family Assistance Act are met that is also:

(i) the first Monday of a CCS fortnight; and

(ii) not more than 28 days before the day the claim was made; and

(b) continues in effect until any of the following happens:

(i) it is superseded by a determination made under subsection (2) or (3);

(ii) it is set aside on review;

(iii) a day or event (if any) specified in the determination as the day or event on which the determination ceases to have effect;

(iv) the individual dies.

(5) A determination made under paragraph (1)(b) has effect from the day the determination is made.

(6) A determination made under subsection (2) or (3) has effect from the day specified in the determination (which may be earlier than the day the determination is made).

67CD Determination of individual's entitlement to be paid CCS or ACCS

Preconditions for making determinations

(1) The Secretary may make a determination under this section for an individual for a week, in relation to sessions of care provided to a child by an approved child care service, only if:

(a) a determination that the individual is eligible for CCS by fee reduction for the child is in effect under paragraph 67CC(1)(a) in relation to any day in the week; and

(b) the provider of the service has given the Secretary a report under section 204B (requirement to report about children for whom care is provided) in relation to the child for the week, including such a report as varied, substituted or corrected under subsection 204B(6) or section 204C; and

(c) if the individual's claim for CCS was made less than 28 days ago - the bank account requirements in section 67BG are met for the purposes of a determination under this Division for the individual; and

(d) if the individual's claim for CCS was made less than 28 days ago - the tax file number requirements in section 67BH are met for the purposes of a determination under this Division for the individual; and

(e) if the Secretary gives the individual a notice under subsection (11) in relation to the child's enrolment for those sessions - the individual has complied with the notice.

Note: For paragraph (b), the report must be given in accordance with subsection 204B(2), and is not given in accordance with that subsection unless the required information is accurate and complete (see subsection 204B(3)).

Entitlement to be paid CCS

(2) If the Secretary is satisfied that:

(a) the individual is eligible for CCS under section 85BA of the Family Assistance Act for one or more of the sessions of care provided by the service to the child in the week, or would be eligible except that a session of care is provided on a day in an immunisation grace period for the child (see subsection (9)); and

(b) the individual meets the information requirements in subsection (10) for the week; and

(d) the amount of CCS to which the individual will become entitled for the sessions of care is more than nil;

the Secretary must determine:

(e) that the individual is entitled to be paid CCS for the sessions of care referred to in paragraph (a); and

(f) the amount of CCS the individual is entitled to be paid.

Note: See subsection (1) for preconditions for making determinations under this subsection.

Entitlement to be paid ACCS (child wellbeing) or ACCS (temporary financial hardship)

(3) If the Secretary is satisfied that:

(a) the individual is eligible for ACCS under section 85CA or 85CG of the Family Assistance Act for one or more sessions of care provided by the service to the child in the week, or would be except that a session of care is provided on a day in an immunisation grace period for the child (see subsection (9)); and

(b) there is no determination in effect under subsection 67CH(2) that a provider is entitled to be paid ACCS (child wellbeing) for those sessions of care; and

the Secretary must determine:

(d) that the individual is entitled to be paid ACCS (child wellbeing) or ACCS (temporary financial hardship) (as applicable) for the sessions of care referred to in paragraph (a); and

(e) the amount of ACCS the individual is entitled to be paid.

Note: See subsection (1) for preconditions for making determinations under this subsection.

Entitlement to be paid ACCS (grandparent)

(4) If the Secretary is satisfied that:

(a) the individual has applied to the Secretary, in a form and manner approved by the Secretary, and within any time period approved by the Secretary, for ACCS (grandparent) in relation to the week; and

(b) the application contains the information, and is accompanied by the documents, required by the Secretary; and

(c) the individual is eligible for ACCS under section 85CJ of the Family Assistance Act for one or more sessions of care provided by the service to the child in the week, or would be except that a session of care is provided on a day in an immunisation grace period for the child (see subsection (9)); and

(d) there is no determination in effect under subsection 67CH(2) that a provider is entitled to be paid ACCS (child wellbeing) for those sessions of care; and

(e) the individual meets the information requirements in subsection (10) for the week;

the Secretary must determine:

(f) that the individual is entitled to be paid ACCS (grandparent) for the sessions of care referred to in paragraph (c); and

(g) the amount of ACCS (grandparent) the individual is entitled to be paid.

Note: See subsection (1) for preconditions for making determinations under this subsection.

(5) A determination cannot be made under subsection (4) for an individual for a week if the CCS fortnight that includes the week starts more than 28 days before the individual made the application referred to in paragraph (4)(a).

Entitlement to be paid ACCS (transition to work)

(6) If the Secretary is satisfied that:

(a) the individual has applied to the Secretary, in a form and manner approved by the Secretary, and within any time period approved by the Secretary, for ACCS (transition to work) in relation to the week; and

(b) the application contains the information, and is accompanied by the documents, required by the Secretary; and

(c) the individual is eligible for ACCS under section 85CK of the Family Assistance Act for one or more sessions of care provided by the service to the child in the week, or would be except that a session of care is provided on a day in an immunisation grace period for the child (see subsection (9)); and

(d) there is no determination in effect under subsection 67CH(2) that a provider is entitled to be paid ACCS (child wellbeing) for those sessions of care; and

(e) the individual meets the information requirements in subsection (10) for the week;

the Secretary must determine:

(f) that the individual is entitled to be paid ACCS (transition to work) for the sessions of care referred to in paragraph (b); and

(g) the amount of ACCS (transition to work) the individual is entitled to be paid.

Note: See subsection (1) for preconditions for making determinations under this subsection.

(7) A determination cannot be made under subsection (6) for an individual for a week if the CCS fortnight that includes the week starts before the individual made the application referred to in paragraph (6)(a).

No entitlement to be paid CCS or ACCS

(8) If the Secretary is not satisfied as referred to in subsection (2), (3), (4) or (6), the Secretary must determine that the individual is not entitled to be paid CCS or ACCS for the sessions of care provided to the child by the service in the week.

Immunisation grace period

(9) A session of care is provided on a day in an immunisation grace period for a child if:

(a) on the day, the child does not meet the immunisation requirements in section 6 of the Family Assistance Act; and

(b) the day is no more than 63 days after the day the child ceased to meet the immunisation requirements.

Meeting the information requirements

(10) An individual meets the information requirements for a week if, on a day in the week:

(a) either of the following apply:

(i) the bank account requirements in section 67BG are met for the purposes of a determination under this Division for the individual;

(ii) the Secretary made a request of the individual under section 67FE no more than 28 days ago; and

(b) any of the following apply:

(i) the tax file number requirements in section 67BH are met for the purposes of a determination under this Division for the individual;

(ii) the Secretary made a request of the individual under section 67FG no more than 28 days ago;

(iii) the Secretary made a request of the individual under section 67FG no more than 56 days ago and a statement of the kind referred to in paragraph 67BH(1)(b) or (c) was provided in response within 28 days of the request;

(c) if, before the week, a period for giving information or producing a document required under Division 1 of Part 6 had ended without the individual giving the information or producing the document - the individual has given the information or produced the document; and

(d) if a determination was made for the individual under section 67CD for a week in the income year (the relevant income year ) that is 2 income years before the income year in which the CCS fortnight that includes the week starts - the individual has met the CCS reconciliation conditions for the relevant income year.

Notice requiring information about enrolments

(11) For paragraph (1)(e), the Secretary may, by written notice, require an individual to give to the Secretary, in a form and manner approved by the Secretary, information stated in the notice in relation to the child's enrolment for sessions of care provided, or to be provided, by an approved child care service.

67CE Notice of determinations under this Subdivision

Notice to individual

(1) The Secretary must give written notice to an individual for whom any of the following determinations are made, no later than 7 days after making the determination:

(a) a determination under section 67CC about the individual's eligibility for CCS for a child;

(b) a determination under section 67CD about the individual's entitlement to be paid CCS or ACCS for a week, if the determination is different from a determination made under that section for the individual for the previous week for any of the following reasons:

(i) a change in the individual's applicable percentage;

(ii) a change in the individual's activity test result;

(iii) the annual cap that applies to the individual being reached for a child for an income year.

(2) At least once every CCS quarter, the Secretary must give written notice to an individual for whom determinations are made under section 67CD for weeks starting in the CCS quarter.

(3) A CCS quarter is the period of 3 months starting on the first Monday of the first CCS fortnight each January, April, July and October.

Notice to providers

(4) The Secretary must give written notice of a determination made under section 67CD to the provider of the child care service that provided the sessions of care to which the determination relates, as soon as practicable after making the determination.

(5) A notice under subsection (4) may be given to a provider by making the notice available to the provider using an electronic interface.

(6) If the Secretary has decided to pay the fee reduction amount in relation to a determination under section 67CD directly to the individual under subsection 67EC(2), the notice under subsection (4) of this section must include a statement to that effect.

Subdivision C - Determinations for individuals claiming CCS or ACCS in substitution for individual who has died

67CF Determination of individual's entitlement to be paid CCS or ACCS in substitution for individual who has died

Preconditions for making determinations

(1) The Secretary may make a determination under this section for an individual (the substitute ) only if:

(a) the substitute has made an effective claim in respect of a child for CCS in substitution for an individual who has died; and

(b) the provider of a child care service that provided sessions of care to the child in a week to which the claim relates has given the Secretary a report under section 204B (requirement to report about children for whom care is provided) in relation to the child for each week in which such sessions of care were provided, including such a report as varied, substituted or corrected under subsection 204B(6) or section 204C; and

(d) the tax file number requirements in section 67BI are met for the purposes of a determination under this Division.

Individual entitled to be paid CCS or ACCS in substitution

(2) If the Secretary is satisfied that the substitute is eligible for an amount of CCS or ACCS under section 85DA of the Family Assistance Act, the Secretary must determine in writing:

(a) that the substitute is entitled to be paid CCS or ACCS in substitution for the individual who has died; and

(b) the amount of CCS or ACCS that the substitute is entitled to be paid.

Individual not entitled to be paid CCS or ACCS in substitution

(3) If the Secretary is not satisfied as referred to in subsection (2), the Secretary must determine that the substitute is not entitled to be paid CCS or ACCS in substitution for the individual who has died.

67CG Notice of determinations under this Subdivision

The Secretary must give written notice to an individual for whom a determination is made under section 67CF about the individual's entitlement to be paid CCS or ACCS in substitution for an individual who has died, no later than 7 days after making the determination.

Subdivision D - Determinations for approved providers

67CH Determination of provider's entitlement to be paid ACCS (child wellbeing)

Preconditions for making determinations

(1) The Secretary must make a determination under this section for an approved provider for a week, in relation to sessions of care provided by an approved child care service of the provider to a child, if:

(a) either of the following is in effect in relation to the child for the week:

(i) a certificate given by the provider under section 85CB of the Family Assistance Act;

(ii) a determination made by the Secretary under section 85CE of the Family Assistance Act; and

(b) the provider has given the Secretary a report for the week under section 204B (requirement to report about children for whom care is provided) in relation to the child, including such a report as varied, substituted or corrected under subsection 204B(6) or section 204C; and

(c) the provider has given the Secretary a declaration, in a form approved by the Secretary, that the provider has made reasonable endeavours to identify an individual who is eligible for ACCS (child wellbeing) for the sessions of care and has not been able to identify anyone.

Provider entitled to be paid ACCS (child wellbeing)

(2) If the Secretary is satisfied that the provider is eligible for ACCS under subsection 85CA(2) of the Family Assistance Act for sessions of care provided to the child in the week, the Secretary must determine in writing:

(a) that the provider is entitled to be paid ACCS (child wellbeing) for those sessions of care; and

(b) the amount of ACCS (child wellbeing) that the provider is entitled to be paid.

Provider not entitled to be paid ACCS (child wellbeing)

(3) If the Secretary is not satisfied as referred to in subsection (2), the Secretary must determine in writing that the provider is not entitled to be paid ACCS (child wellbeing) for those sessions of care.

67CI Notice of determinations under this Subdivision

(1) The Secretary must give written notice of a determination made under this Subdivision to the approved provider for whom the determination was made as soon as practicable.

(2) A notice under subsection (1) may be given to an approved provider by making the notice available to the provider using an electronic interface.

Division 4 - Estimates etc. of adjusted taxable income

67DA Simplified outline of this Division

To work out the amount of CCS an individual is entitled to be paid for a week, it is necessary to know the individual's adjusted taxable income for the income year the week relates to.

The final amount of the individual's income for the income year usually cannot be known until after the income year has ended.

In the meantime, the Secretary is able to rely on an estimate provided by the individual, or on an indexed estimate or the indexed actual income of an earlier income year.

After the individual meets the CCS reconciliation conditions, any underpayment to the individual will generally be topped up and any overpayments become debts due to the Commonwealth.

67DB Determinations when adjusted taxable income is not known

Determinations under section 67CD

(1) This section applies if, at the time of making a determination under section 67CD for a week in a CCS fortnight, for an individual who is not eligible for any kind of ACCS, the individual has not met the CCS reconciliation conditions.

Estimate

(2) The Secretary may make the determination under section 67CD on the basis of the most recent of whichever of the following estimates (if any) exists on the first Monday of the CCS fortnight:

(a) a reasonable estimate given to the Secretary by the individual;

(b) the indexed estimate stated in a notice given to the individual under section 67DC and with a start day that has arrived or passed;

(c) the indexed actual income stated in a notice given to the individual under section 67DD and with a start day that has arrived or passed.

No estimate

(3) If none of the estimates referred to in subsection (2) exists on the first Monday of the CCS fortnight, the Secretary must determine under subsection 67CD(8) that the individual is not entitled to be paid CCS or ACCS.

67DC Indexed estimates

(1) The Secretary may calculate an indexed estimate for an individual under subsection (5), with a start day chosen by the Secretary, if:

(a) the individual, or the individual's partner, is a claimant for CCS by fee reduction; and

(b) a determination is in effect under paragraph 67CC(1)(a) that the claimant is eligible for CCS for a child; and

(c) information about the adjusted taxable income of the individual needed to make a determination under Division 3 for the claimant is not known; and

(d) the claimant has given the Secretary an estimate of the amount needed that the Secretary considers to be reasonable.

(2) If the Secretary calculates an indexed estimate for the individual, the Secretary may give the claimant a notice:

(a) stating the indexed estimate for the individual; and

(b) specifying the start day used in the Secretary's calculation (which must be the first day of a CCS fortnight at least 14 days after the day the notice is given).

(3) The Secretary must not give a notice under subsection (2) stating an indexed estimate for the individual with a start day in an income year if the Secretary has already given a notice under subsection (2) stating an indexed estimate for that individual with a start day in the same income year.

(4) A notice given to a claimant under subsection (2) stating an indexed estimate for an individual has no effect if, before the start day specified in the notice for the indexed estimate, the Secretary gives the claimant a notice under subsection 67DD(2) stating an indexed actual income for the same individual. Any such notice under subsection 67DD(2) must specify a start day that is no earlier than the start day specified in the superseded notice.

(5) Calculate an indexed estimate (which may be nil) for the individual by multiplying the individual's current ATI number (see subsection (6)) by the indexation factor, rounding the result to the nearest dollar and rounding 50 cents upwards. The indexation factor is the greater of 1 and the factor worked out to 3 decimal places as follows (increasing the factor by 0.001 if it would, if worked out to 4 decimal places, end in a number greater than 4):

Formula for indexation factor

where:

AWE means the amount published by the Australian Statistician in a document titled "Average Weekly Earnings" under the headings "Average Weekly Earnings, Australia - Original - Persons - All employees total earnings" (or, if any of those change, in a replacement document or under replacement headings).

highest previous November means the November in which, of all the Novembers from November 2004 to the November before the most recent November (inclusive), AWE was the highest.

most recent November means the November of the income year before the income year in which the start day occurs.

reference period , in a particular November, means the period described by the Australian Statistician as the last pay period ending on or before a specified day that is the third Friday of that November.

(6) For the purposes of subsection (5), the individual's current ATI number is:

(a) if, at the time of calculation, the Secretary has given the claimant a notice under subsection 67DD(2) stating an indexed actual income for the individual with a start day that has not arrived - the indexed actual income stated in the notice; or

(b) if paragraph (a) does not apply and the individual is the claimant - the amount the Secretary is permitted to use for the individual under section 67DB (disregarding the effect for couples of section 67DE of this Act and clause 3 of Schedule 3 to the Family Assistance Act); or

(c) if paragraph (a) does not apply and the individual is the claimant's partner - the amount the Secretary would be permitted to use for the individual under section 67DB if the individual were the claimant (disregarding the effect for couples of section 67DE of this Act and clause 3 of Schedule 3 to the Family Assistance Act).

(7) A notice under subsection (2) is not a legislative instrument.

67DD Indexed actual incomes

(1) The Secretary may calculate an indexed actual income for an individual under subsection (4), with a start day chosen by the Secretary, if:

(a) the individual, or the individual's partner, is a claimant for CCS by fee reduction; and

(b) a determination is in effect under paragraph 67CC(1)(a) that the claimant is eligible for CCS; and

(c) information about the adjusted taxable income of the individual needed to make a determination under Division 3 for the claimant is not known; and

(d) the most recent such determination made for the claimant was made on the basis of an indexed estimate or an indexed actual income; and

(e) since the claimant was last given a notice under subsection 67DC(2) or subsection (2) of this section stating an indexed estimate or indexed actual income for an individual, the claimant has not given the Secretary an estimate of the claimant's adjusted taxable income that the Secretary considers to be reasonable; and

(f) the adjusted taxable income for an income year ( actual income ) of the individual (disregarding the effect for couples of clause 3 of Schedule 3 to the Family Assistance Act) becomes known to the Secretary and it is the most recent income year for which the individual's actual income is known to the Secretary.

(2) If:

(a) the Secretary calculates an indexed actual income for the individual; and

(b) the indexed actual income is greater than the individual's current ATI number (see subsection (5));

the Secretary may give the claimant a notice:

(d) specifying the start day used in the Secretary's calculation (which must be the start of a CCS fortnight at least 14 days after the day the notice is given).

(3) A notice given to a claimant under subsection (2) stating an indexed actual income for an individual has no effect if, before the start day specified in the notice, the Secretary gives the claimant another notice under that subsection or a notice under subsection 55AA(2) stating an indexed estimate or indexed actual income for the same individual. Any other such notice must specify a start day that is no earlier than the start day specified in the superseded notice.

(4) Calculate an indexed actual income (which may be nil) for the individual by multiplying the actual income of the individual which became known to the Secretary by the indexation factor, rounding the result to the nearest dollar and rounding 50 cents upwards. The indexation factor is the greater of 1 and the factor worked out to 3 decimal places as follows (increasing the factor by 0.001 if it would, if worked out to 4 decimal places, end in a number greater than 4):

Formula for indexation factor

where:

highest previous November means the November in which, of all the Novembers from November 2004 to the November before the most recent November (inclusive), AWE was the highest.

most recent November means the November of the income year before the income year in which the start day occurs.

(5) For the purposes of paragraph (2)(b), the individual's current ATI number is:

(a) if, at the time of calculation, the Secretary has given the claimant a notice under subsection 67DC(2) or subsection (2) of this section stating an indexed estimate or indexed actual income for the individual with a start day that has not arrived - the indexed estimate or indexed actual income stated in the notice; or

(6) A notice under subsection (2) is not a legislative instrument.

67DE Indexed estimates and indexed actual incomes for members of couples

(1) This section applies in relation to any individual who is a member of a couple.

(2) For the purposes of this Act or the Family Assistance Act, any reference to a determination under section 67CD being made on the basis of an indexed estimate, or an indexed actual income, for an individual or stated in a notice, is affected by subsection (3).

(3) The reference is taken to be a reference to the determination being made on the basis of the indexed estimate, or the indexed actual income, for that individual or stated in that notice, combined with:

(a) the indexed estimate or indexed actual income for the individual's partner stated in a notice given to:

(i) if the individual is the claimant for CCS or ACCS (grandparent) - the individual; or

(ii) if the individual is the partner of the claimant - the individual's partner;

under subsection 67DC(2) or 67DD(2) with the most recent start day that has arrived or passed; or

(b) if there is no such indexed estimate or indexed actual income - a reasonable estimate of the adjusted taxable income of the individual's partner (disregarding the effect of clause 3 of Schedule 3 to the Family Assistance Act) that has been given to the Secretary by the individual.

Division 5 - Payments

67EA Simplified outline of this Division

If an individual is entitled to be paid CCS or ACCS by fee reduction for sessions of care provided to a child in a week:

(a) the Secretary pays the amount to the provider of the child care service (less a withholding amount in the case of CCS); and

(b) the provider must pass on the amount to the individual within 14 days (whether as a fee reduction or in any other way). The provider's obligation to pass on the amount is dealt with in section 201A.

If the individual does not receive their full entitlement in this way, the entitlement is paid directly to them, though usually not until after the CCS reconciliation conditions are met.

Approved providers who are entitled to be paid ACCS (child wellbeing), and individuals who are entitled to be paid CCS or ACCS in substitution for an individual who has died, are paid their entitlements directly.

67EB Payments to providers of individuals' entitlements to CCS or ACCS by fee reduction

(1) If a fee reduction decision is made for an individual in relation to sessions of care provided by a child care service to a child, the Secretary must pay the fee reduction amount for the decision to the credit of a bank account nominated and maintained by the provider of the service.

Note: However, the Secretary may instead pay the fee reduction amount directly to the individual (see subsection 67EC(2)).

(2) The following table sets out the decisions that are fee reduction decisions and the amount that is the fee reduction amount for each such decision. A reference to a provider being given notice of a fee reduction decisionis a reference to the provider being given notice of the decision under the provision specified for the decision in the table.

Fee reduction decisions and fee reduction amounts
Item	Fee reduction decision	Fee reduction amount	Notice of the decision
1	a determination made under subsection 67CD(2) of an amount of CCS the individual is entitled to be paid for sessions of care provided by a service to a child in a week, if made while the child is still enrolled for care by the service	the amount of CCS the individual is entitled to be paid less the withholding amount for the payment	subsection 67CE(4)
2	a determination made under subsection 67CD(3), (4) or (6) of an amount of ACCS the individual is entitled to be paid for sessions of care provided by a service to a child in a week, if made while the child is still enrolled for care by the service	the amount of ACCS the individual is entitled to be paid	subsection 67CE(4)
3	a decision on review under Part 5 of this Act or under the AAT Act that has the effect that the amount of CCS an individual is entitled to be paid for sessions of care provided by a service to a child in a week in a CCS fortnight is increased (including from nil), if the decision is made: (a) before the individual meets the CCS reconciliation conditions for the income year in which the CCS fortnight starts; and (b) while the child is still enrolled for care by the service	the amount by which the entitlement is increased, less the withholding amount for the payment	subsection 106A(2) or 109B(2A) or section 136
4	a decision on review under Part 5 of this Act or under the AAT Act that has the effect that the amount of ACCS an individual is entitled to be paid for sessions of care provided by a service to a child in a week in a CCS fortnight is increased (including from nil), if the decision is made: (a) before the individual meets the CCS reconciliation conditions for the income year in which the CCS fortnight starts; and (b) while the child is still enrolled for care by the service	the amount by which the entitlement is increased	subsection 106A(2) or 109B(2A) or section 136

(3) The withholding amount , for a payment, is the following percentage of the payment:

(a) 10%;

(b) if the Minister's rules prescribe a different percentage and paragraph (c) does not apply - the prescribed percentage;

(c) if a determination made under subsection (4) applies to the individual - the percentage specified in the determination.

(4) The Secretary may make a determination specifying a percentage for an individual for the purposes of paragraph (3)(c), if the Secretary is satisfied that the percentage is appropriate to manage a debt that has been or might be incurred by the individual under Part 4.

(5) A determination made under subsection (4) is not a legislative instrument.

(6) This section is subject to:

(a) subsection 67EC(2) (direct payment to individuals); and

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

(d) section 205B (setting off business continuity payments).

67EC Payment directly to individuals of entitlements to CCS or ACCS

Before CCS reconciliation conditions met

(1) If:

(a) a decision is made for an individual in relation to sessions of care provided by an approved child care service to a child; and

(b) the decision would be a fee reduction decision except that the child is not enrolled for care by the service when the decision is made;

the Secretary must pay the amount that would have been the fee reduction amount for the decision, in accordance with subsection (5):

(d) if the Secretary considers it appropriate - to another person:

(i) on the individual's behalf; or

(ii) to discharge or set off an obligation of the individual to the other person.

(2) If:

(a) a fee reduction decision is made for an individual in relation to sessions of care provided by an approved child care service to a child; and

(b) the Secretary considers that it is appropriate in the circumstances;

the Secretary may pay the fee reduction amount directly to the individual in accordance with subsection (5) instead of under subsection 67EB(1) (payment to credit of approved provider's bank account).

Fee reduction amounts not passed on

(3) If a provider:

(a) remits a fee reduction amount to the Secretary in accordance with paragraph 201A(1)(b); or

(b) incurs a debt to the Commonwealth under section 71D in relation to a fee reduction amount;

the Secretary may pay the fee reduction amount directly to the individual in accordance with subsection (5).

After CCS reconciliation conditions met

(4) If:

(a) an individual is entitled to be paid CCS or ACCS by fee reduction for sessions of care provided by an approved child care service in CCS fortnights starting in an income year (the relevant income year ); and

(b) the individual meets the CCS reconciliation conditions for the relevant income year no later than the second deadline for the relevant income year; and

(c) the total of the fee reduction amounts passed on by the provider of the service to the individual under section 201A, for fee reduction decisions for weeks in CCS fortnights starting in the relevant income year, is less than the total amount of CCS or ACCS the individual is entitled to be paid for those weeks;

the Secretary must pay so much of the difference as has not already been paid under subsection (1), (2) or (3) to the individual under subsection (5).

How amounts are to be paid under this section

(5) The whole or any part of an amount mentioned in subsection (1), (2), (3) or (4) must be paid at such time as the Secretary considers appropriate:

(a) to the credit of a bank account nominated and maintained by:

(i) the individual; or

(ii) if the amount is to be paid to another person under paragraph (1)(b) - the other person; or

(b) if the Secretary so directs - in a different way.

(6) Without limitation, the Secretary may consider that it is not appropriate to make a payment under subsection (1), (2) or (3) until after the individual meets the CCS reconciliation conditions for the income year in which the CCS fortnight that includes the week to which the payment relates starts.

Provisions this section is subject to

(7) This section is subject to:

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

(b) Division 3 of Part 8B (payments to payment nominees).

67ED Payment of CCS or ACCS in substitution for an individual who has died

(1) If an individual is entitled to be paid CCS or ACCS in substitution for an individual who has died, the Secretary must pay the amount of the entitlement, at such time as the Secretary considers appropriate and to the credit of a bank account nominated and maintained by the individual.

(2) The Secretary may direct that the whole or part of the amount is to be paid in a different way. If the Secretary does so, the amount must be paid in accordance with the direction.

(3) This section is subject to:

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

(b) Division 3 of Part 8B (payments to payment nominees).

67EE Payments to provider in respect of provider's own entitlement to be paid ACCS (child wellbeing)

(1) If a provider is entitled to be paid an amount of ACCS (child wellbeing) for sessions of care provided to a child in a week, the Secretary must pay the amount, at such time as the Secretary considers appropriate and to the credit of a bank account nominated and maintained by the provider.

(2) This section is subject to:

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

(b) paragraph 195H(1)(f) (suspension of payments); and

Division 6 - Giving information

67FA Simplified outline of this Division

Individuals who are eligible for CCS or ACCS have a duty to keep the Secretary informed about changes of circumstances that might affect their eligibility or entitlement.

The Secretary may also request individuals from time to time to give information relevant to their eligibility or entitlement.

Providers have a duty to notify the Secretary if they consider that a child who has been considered to be at risk of serious abuse or neglect is not at risk. The Secretary may also request them to give information about various matters.

67FB Notice of change of circumstances: individuals

(1) An individual must notify the Secretary as soon as practicable, in a manner set out in a notice given to the individual under section 67FD, if:

(a) a determination is in effect under paragraph 67CC(1)(a) that the individual is eligible for CCS for a child; and

(b) any of the following happens:

(i) an event that causes the individual to cease to be eligible for CCS for sessions of care provided by an approved child care service to the child;

(ii) if the individual was eligible for a kind of ACCS - an event that causes the individual to cease to be eligible for that kind of ACCS for sessions of care provided by an approved child care service to the child;

(iii) an event that affects whether the individual is entitled to be paid CCS or a kind of ACCS, or the amount of CCS or ACCS the individual is entitled to be paid, for the child;

(iv) the individual becomes aware that an event referred to in subparagraph (i), (ii) or (iii) is likely to happen.

(2) An individual commits an offence if the individual contravenes subsection (1).

Penalty: Imprisonment for 6 months.

(3) Subsection (1) does not require an individual who has been eligible for ACCS (transition to work) to notify the Secretary of the end of the 12 week period referred to in paragraph 85CK(2)(b) of the Family Assistance Act.

67FC Notice if child not at risk of serious abuse or neglect: providers

(1) An approved provider must notify the Secretary as soon as practicable, in a manner set out in a notice given to the provider under section 67FD,if:

(a) a certificate given by the provider under section 85CB (certification for ACCS (child wellbeing)) of the Family Assistance Act is in effect in relation to a child for a week; and

(b) the provider considers that the child is not at any risk of serious abuse or neglect during the week; and

(2) An approved provider must notify the Secretary as soon as possible, in a manner set out in a notice given to the provider under section 67FD, if:

(a) the provider knows that a determination made by the Secretary under section 85CE (determination for ACCS (child wellbeing)) of the Family Assistance Act is in effect in relation to a child for a week; and

(b) the provider considers that the child is not at any risk of serious abuse or neglect during the week.

(3) A person commits an offence if the person contravenes subsection (1) or (2).

Penalty: 60 penalty units.

(4) Subsection (1) and (2) apply even if the certificate or determination has ceased to have effect.

67FD Manner of notifying change of circumstances

(1) The Secretary must approve a manner of notification to be used to notify the Secretary of matters required to be notified under sections 67FB and 67FC.

(2) The Secretary must give individuals to whom section 67FB applies and approved providers to whom section 67FC applies written notice of the approved manner.

67FE Request for bank account details

If:

(a) a determination is in effect under paragraph 67CC(1)(a) that an individual is eligible for CCS for a child; and

(b) the Secretary is satisfied that the Secretary does not have the details of a bank account, maintained by the individual alone or jointly with someone else, into which amounts of CCS or ACCS can be paid;

the Secretary may, by written notice given to the individual, request the individual to give the Secretary the details of such a bank account within 28 days of the request.

67FF Request for tax file number etc. in claim forms

(1) The Secretary may request, in a claim form for CCS by fee reduction, that a statement of the kind referred to in paragraph 67BH(1)(a), (b) or (c) be made in relation to each TFN claim person.

(2) The Secretary may request, in a claim form for CCS in substitution for an individual who has died, that a statement of the kind referred to in paragraph 67BI(1)(a), (b) or (c) be made in relation to each TFN substitution person.

67FG Request for tax file number etc. of TFN determination persons

(1) If:

(a) a determination is in effect under paragraph 67CC(1)(a) that an individual is eligible for CCS for a child; and

(b) the Secretary is satisfied that the tax file number requirements in section 67BH are not met for the purposes of a determination under Division 3 for the individual;

the Secretary may, by written notice given to the individual, request that a statement of the kind referred to in paragraph 67BH(1)(a), (b) or (c) be made in relation to a specified TFN determination person within 28 days of the request.

(2) For the purposes of subsection (1), a reference in subsection 67BH(1) to:

(a) the claimant - is taken to be a reference to the individual; and

(b) a TFN claim person - is taken to be a reference to a TFN determination person.

67FH Request for information about care provided

(1) The Secretary may, by written notice given to the approved provider of a child care service, require the provider to give the Secretary information in relation to any aspect of care provided or expected to be provided by the service.

(2) The notice must:

(a) specify the period in relation to which, or the intervals at which, the information is to be provided; and

(b) be given in a form and manner approved by the Secretary.

(3) Information given in response to the notice must be given in a form and manner approved by the Secretary.

67FI Request for information in relation to eligibility or entitlement for CCS or ACCS

The Secretary may, by written notice given to an individual for whom a determination is in effect under paragraph 67CC(1)(a) that the individual is eligible for CCS for a child, request the individual to give the Secretary, before the end of the period specified in the notice, the information specified in the notice in relation to the individual's present or future eligibility or entitlement for CCS or ACCS.

Division 7 - Payment protection and garnishee orders

67GA Simplified outline of this Division

Generally, a payment of CCS or ACCS is protected, subject to some exceptions related to debt management and payment to nominees.

67GB Protection of payments in relation to CCS and ACCS

(1) Payments of the following amounts are absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise:

(a) child care subsidy;

(b) additional child care subsidy;

(d) payments under section 205A (business continuity payments).

(2) Subsection (1) has effect subject to the following provisions:

(a) paragraph 67EC(5)(b) and subsection 67ED(2) (about payment of CCS or ACCS in a different way);

(b) section 84A (about setting off a person's entitlement to family assistance against a debt of the person);

(d) Division 3 of Part 8B (about payments to payment nominee).

67GC Effect of garnishee etc. order

(1) If:

(a) a person has an account with a financial institution; and

(b) payments of any of the kinds mentioned in subsection 67GB(1) are being paid, or have been paid, to the credit of the account; and

the court order does not apply to the saved amount (if any) in the account.

(2) The saved amount is worked out as follows:

Method statement

Step 1. Work out the total amount of the payments mentioned in subsection (1) that have been paid to the credit of the account during the 4 week period immediately before the court order came into force.

Step 2. Subtract from the step 1 amount the total amount withdrawn from the account during the same 4 week period: the result is the saved amount.

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Family Assistance Legislation Amendment (Jobs for Families Child Care Package) Act 2017 (22 of 2017)

Schedule 1 Main amendments

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

92 After Part 3

Fee reduction decisions and fee reduction amounts

Item

Fee reduction decision

Fee reduction amount

Notice of the decision