Family Assistance Legislation Amendment (Child Care Subsidy) Act 2023 (38 of 2023)

Schedule 1   Amendments

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

2   Section 71F

Repeal the section, substitute:

71F Debts in respect of CCS or ACCS for individual - provider at fault

When this section applies

(1) This section applies if:

(a) an amount (the CCS/ACCS amount ) is paid to an individual by way of CCS or ACCS for a session of care provided by a child care service of a provider; and

(b) all or part of the CCS/ACCS amount (the attributable component ) is paid to the individual because the provider has:

(i) made a false or misleading statement; or

(ii) failed to comply with the family assistance law; and

(c) the individual incurs a debt under subsection 71B(1) or 71C(1) for the CCS/ACCS amount.

If debt is incurred before reconciliation

(2) If the individual incurs the debt before the individual meets the CCS reconciliation conditions for the income year in which the session of care occurs, then:

(a) the amount of the debt is taken to be reduced by the amount of the attributable component; and

(b) the amount of the attributable component is instead a debt due to the Commonwealth by the provider.

If debt is incurred after reconciliation

(3) If the individual incurs the debt after the individual meets the CCS reconciliation conditions for the income year in which the session of care occurs, then:

(a) the amount of the debt is taken to be the amount of the withholding component of the CCS/ACCS amount (see subsection (4)); and

(b) the amount of the fee reduction component of the CCS/ACCS amount (see subsection (5)) is a debt due to the Commonwealth by the provider.

(4) The withholding component of the CCS/ACCS amount is the amount that would be the withholding amount under subsection 67EB(3), if it were assumed that:

(a) subsections 67EB(3) and (4) applied for the purposes of this section; and

(b) references to a payment in subsection 67EB(3) were instead references to the CCS/ACCS amount.

(5) The fee reduction component of the CCS/ACCS amount is the CCS/ACCS amount less the withholding component of the CCS/ACCS amount.