House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Education and Youth, the Honourable Alan Tudge MP)

OUTLINE

The purpose of the Family Assistance Legislation Amendment (Child Care Subsidy) Bill 2021 (the Bill) is to give effect to a key measure impacting the rate of child care subsidy (CCS) that Australian families are entitled to receive.

Specifically, the measures relate to removing the existing CCS cap that limits the amount of CCS some families can receive in a year, and increasing the rate of CCS for families with multiple children under six years of age who are eligible for CCS.

The Bill implements the Government's changes to CCS announced in the 2021-22 Budget, building on the success of the Australian Government's Child Care Package implemented in July 2018.

These changes will maintain the integrity of the CCS and will reduce out-of-pocket child care costs for those families who currently pay the most - those with multiple children aged under six years.

The Bill makes amendments to the A New Tax System (Family Assistance) Act 1999 (the Family Assistance Act) and the A New Tax System (Family Assistance) (Administration) Act 1999 (the Family Assistance Administration Act), which are the two key Acts that provide families with assistance with child care costs, primarily through the CCS.

Amendments to the Family Assistance Administration Act in Schedule 1 to the Bill remove the annual cap from the Family Assistance Law so that from 1 July 2022 (or an earlier date fixed by Proclamation) there will no longer be a limit on the amount of child care subsidy that families, over a specified income, can receive each year. The effect of these amendments is that no family will have a limit on the amount of CCS that they can receive each year.

Amendments to the Family Assistance Administration Act in Schedule 2 to the Bill provide for increased child care subsidy from 11 July 2022 (or an earlier date fixed by Proclamation) for families with multiple children under six who are eligible for CCS. The amendments will increase the rate of CCS by 30 percentage points for second and subsequent children aged under six, up to a maximum subsidy rate of 95 per cent. The oldest child aged under six years will continue to receive the current CCS rate based on the family's combined income. The measure will be implemented through a two-phased approach to ensure implementation can occur as soon as possible but allowing sufficient time for the necessary system build to support the measure.

Part 1 of Schedule 2 to the Bill outlines the changes to the Family Assistance Act and Family Assistance Administration Act for Phase 1 of this measure. In Phase 1, families will receive the higher rate of CCS for a child as long as there is an older child under six years of age with CCS eligibility, with CCS eligibility ceasing after 26 consecutive weeks of no sessions of care being provided by an approved child care service. The Secretary may also cease CCS eligibility at any time if the Secretary considers an individual does not intend that the child be enrolled in or attend a child care service.

Part 2 of Schedule 2 to the Bill outlines the changes to the Family Assistance Administration Act for Phase 2 of this measure. Phase 2 is designed to be the ongoing policy setting and provides that families will receive the higher rate of CCS for a child as long as there is an older child under six years who has attended a session of care in the last 14 consecutive weeks.

FINANCIAL IMPACT STATEMENT

In 2022-23, the cost of the changes provided for in this Bill will be $635.5 million (fiscal balance terms), taking the total estimated child care spend to $11 billion in 2022-23. From phase two, fully implemented in 2023-24, the cost of the changes provided for in this Bill will be $655.9 million (fiscal balance terms) in 2023-24, taking the total estimated child care spend to $11.5 billion.

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

FAMILY ASSISTANCE LEGISLATION AMENDMENT (CHILD CARE SUBSIDY) BILL 2021

The Family Assistance Legislation Amendment (Child Care Subsidy) Bill 2021 (Bill) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Bill

The purpose of the Family Assistance Legislation Amendment (Child Care Subsidy) Bill 2021 (the Bill) is to give effect to a key measure impacting the rate of child care subsidy (CCS) that Australian families are entitled to receive.

Specifically, the measure relates to removing the existing CCS cap that limits the amount of CCS some families can receive in a year, and increasing the rate of CCS for families with multiple children under six years of age who are eligible for CCS.

The Bill implements the Government's changes to CCS announced in the 2021-22 Budget, building on the success of the Australian Government's Child Care Package implemented in July 2018.

These changes will maintain the integrity of the CCS and will reduce out-of-pocket child care costs for those families who currently pay the most - those with multiple children aged under six years.

The Bill makes amendments to the A New Tax System (Family Assistance) Act 1999 (the Family Assistance Act) and the A New Tax System (Family Assistance) (Administration) Act 1999 (the Family Assistance Administration Act), which are the two key Acts that provide families with assistance with child care costs, primarily through the child care subsidy.

Amendments to the Family Assistance Administration Act in Schedule 1 to the Bill remove the annual cap from the Family Assistance Law so that from 1 July 2022 (or an earlier date fixed by Proclamation) there will no longer be a limit on the amount of child care subsidy that families, above a specified income, can receive each year.

Amendments to the Family Assistance Administration Act in Schedule 2 to the Bill provide for increased child care subsidy from 11 July 2022 (or an earlier date fixed by Proclamation) for families with multiple children under six who are eligible for CCS. The amendments will increase the rate of CCS by 30 percentage points for second and subsequent children aged under six, up to a maximum subsidy rate of 95 per cent. The measure will be implemented through a two-phased approach to ensure implementation can occur as soon as possible but allowing sufficient time for the necessary system build to support the measure.

Part 1 of Schedule 2 to the Bill outlines the changes to the Family Assistance Administration Act for Phase 1 of this measure. In Phase 1, families will receive the higher rate of CCS for a child as long as there is an older child under six years of age with CCS eligibility, with CCS eligibility ceasing after 26 consecutive weeks of no sessions of care being provided by an approved child care service. The Secretary may also cease CCS eligibility at any time if the Secretary considers an individual does not intend that the child be enrolled in or attend a child care service.

Part 2 of Schedule 2 to the Bill outlines the changes to the Family Assistance Administration Act for Phase 2 of this measure. In Phase 2, families will receive the higher rate of CCS for a child as long as there is an older child under six years who has attended a session of care in the last 14 consecutive weeks.

Analysis of human rights implications

The Bill engages the following human rights:

•

the right to work - Article 6 of the International Covenant on Economic, Social and Cultural Rights (ICESCR);

•

the rights of children - Article 3 of the Convention on the Rights of the Child (CRC);

•

the right to adequate standing of living - Article 27 of the CRC.

The right to work

Article 6(1) of the ICESCR recognises "the right of everyone to the opportunity to gain [their] living by work" and that the State will "take appropriate steps to safeguard this right". Data shows that child care costs can be a barrier preventing parents, in particular secondary income earners in a couple, from entering or increasing their participation in the workforce. By reducing the costs of child care for families by increasing the amount of CCS they can receive, families can have greater choice in their participation in the workplace. The Bill is compatible with the right in Article 6(1) of the ICESCR as it promotes the right to work.

The rights of children

Article 3 of the CRC recognises that in all actions concerning children, the best interests of the child shall be a primary consideration.

Early learning and child care play an important role in the development of Australian children. The Bill promotes the best interests of the child by giving families better access to affordable and quality child care particularly in the early years of life. The Bill is compatible with the rights of children.

Right to adequate standard of living

Article 27 of the CRC requires that State Parties recognise the right of every child to a standard of living adequate for the child's physical, mental, spiritual, moral and social development. The Bill supports this right by promoting better access to more affordable child care for more families. The amendments help ensure more children have access to an child care to aid early learning and social development. The Bill is compatible with the right to an adequate standard of living.

Conclusion

The Bill is compatible with human rights as the amendments in this Bill advance human rights under the ICESCR and CRC.

Notes on Clauses

Clause 1 - Short title

This clause provides for the Act to be the Family Assistance Legislation Amendment (Child Care Subsidy) Act 2021.

Clause 2 - Commencement

The table in subclause 2(1) sets out when the Bill's provisions will commence. The Bill will commence as follows:

•

Sections 1 to 3 will commence on the day after the Act receives the Royal Assent.

•

Schedule 1 will commence on the earlier of a single day to be fixed by Proclamation, or 1 July 2022.

•

Part 1 of Schedule 2 will commence on the earlier of a single day to be fixed by Proclamation, or 11 July 2022.

•

Part 2 of Schedule 2 will commence on the earlier of a single day to be fixed by Proclamation, or 1 July 2023.

The default dates of commencement are likely to be later than 6 months after Royal Assent. This is required because the changes to the IT system to support the measures in this Bill are complex and will require lead times greater than 6 months. Legislation needs to be in place to provide the necessary authority for many elements of the system build and testing to be implemented, in particular to allow the necessary work with third party software providers to take place.

A note to subclause 2(1) states that the table relates only to the provisions of the Act as originally enacted. It will not be amended to deal with any later amendments of the Act.

Subclause 2(2) provides that information in column 3 of the table at subclause 2(1) is not part of the Act and information may be inserted into column 3 or information in it may be edited in any published version of the Act.

Clause 3 - Schedules

This clause provides that any legislation that is specified in a schedule is amended or repealed as set out in the applicable items in the schedule and that any other item in a schedule has effect according to its terms.

ABBREVIATIONS USED IN THIS EXPLANATORY MEMORANDUM

ACCS means additional child care subsidy.

ATI means the adjusted taxable income, which has the meaning given in Schedule 3 to the Family Assistance Act.

CCS means child care subsidy.

Family Assistance Act means the A New Tax System (Family Assistance) Act 1999.

Family Assistance Administration Act means the A New Tax System (Family Assistance) (Administration) Act 1999.

Family Assistance Law means the Family Assistance Act and the Family Assistance Administration Act and subordinate legislation made under either of those Acts.

Minister's Rules means the Child Care Subsidy Minister's Rules 2017 (being the rules made by the Minister under subsection 85GB(1) of the Family Assistance Act).

Schedule 1 - Removal of child care subsidy annual cap

A New Tax System (Family Assistance) Act 1999

Currently, subclause 1(2) of Schedule 2 of the Family Assistance Act provides that the CCS annual cap of $10,000 (indexed to $10,560 in the income year 2020-21) applies to an individual if the ATI of the individual exceeds the amount that is the lower income threshold plus $120,000 ($189,390 in the income year 2020-21, after indexation). Subclause 1(3) of Schedule 2 to the Family Assistance Act provides that the amount of CCS an individual is eligible to receive in a week is nil once the amount of CCS already received by the individual and their partner in an income year has reached the annual cap for a child.

The existence of an annual cap on the amount of CCS a family can receive in a year can be a deterrent for families to increase the number of hours they work. This is because once a family reaches the annual cap, they are no longer entitled to receive any CCS for any more child care for the rest of that income year. If Schedule 2 in this Bill was introduced without Schedule 1 then families would also reach the annual cap sooner for their second child or subsequent children under six in child care. The removal of the annual cap will mean that families will have lower child care costs and greater choice in relation to workforce participation.

Items 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 and 15 - Subsection 3(1), Clauses 1, 5 and 7 of Schedule 2, Clauses 2 (table item 20) and 3 (table item 20) of Schedule 4

Items 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 and 15 amend or repeal subsection 3(1), clauses 1, 5 and 7 of Schedule 2, and clauses 2 and 3 of Schedule 4 of the Family Assistance Act, to remove references to the annual cap in the Family Assistance Act, as the annual cap no longer applies.

Item 16 - Application provision

Item 16 provides that the amendments made by Schedule 1 of the Bill apply in relation to the income year (which has the same meaning as in the Income Tax Assessment Act 1997) in which item 16 commences and later income years.

Item 16 also provides that the amendments made by this Schedule apply to sessions of care (as defined in the Minister's Rules) provided to a child in a CCS fortnight (as defined in the Family Assistance Act) that starts in the income year in which item 60 commences or in a later income year.

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

Item 18 - Subparagraph 67CE(1)(b)(iii)

Item 18 repeals subparagraph 67CE(1)(b)(iii) of the Family Assistance Administration Act to remove reference to the annual cap in the Family Assistance Administration Act, as the annual cap will no longer apply.

Item 17 - Subparagraph 67CE(1)(b)(ii)

Item 17 makes a minor technical amendment changing a semi-colon to a full stop, required as a result of the amendment made by item 17.

Item 19 - Subsection 105E(6)

Item 19 makes an amendment to subsection 105E(6), which has the effect of omitting subparagraph 105E(6)(b)) of the Family Assistance Administration Act as this paragraph will no longer have effect due to the repeal of subclause 1(3) of Schedule 2 to the Family Assistance Act to remove the annual cap.

Item 20 - Saving provision - income years ending before commencement

Item 20 is a saving provision that provides that subparagraph 67CE(1)(b)(iii) and subsection 105E(6) of the Family Assistance Administration Act, as in force immediately before the commencement of this item, continue to apply, on and after that commencement, in relation to income years ending before that commencement.

Schedule 2 - Increased amounts of child care subsidy

Part 1 - Phase 1 amendments

A New Tax System (Family Assistance) Act 1999

Item 2 - Subsection 3(1)

Item 2 inserts a definition of 'higher rate child' into subsection 3(1) of the Family Assistance Act. Item 100 provides that 'higher rate child' has the meaning given by new subclause 3B(1) of Schedule 2 (see item 7).

Item 4 - Subclause 2(1) of Schedule 2 (note)

Item 4 is a minor technical amendment to remove a note that is no longer required as a result of the changes made by this Part.

Item 5 - Clause 3 of Schedule 2 (heading)

The applicable percentage affects the amount of CCS an individual is entitled to receive in relation to sessions of care provided by an approved child care service to a child in a week.

Item 5 makes an amendment to the heading of clause 3 of Schedule 2 of the Family Assistance Act to clarify that clause 3 relates to the applicable percentage for a basic case. Clause 3 provides the method for working out the applicable percentage for a session of care provided to a child other than a 'higher rate child'.

Item 7 - After clause 3 of Schedule 2

Item 7 inserts new clauses 3A and 3B into Schedule 2 of the Family Assistance Act to set out the applicable percentage in cases where a child is a 'higher rate child'.

Applicable percentage - other cases

New clause 3A provides that if a child is a 'higher rate child' (see new clause 3B for the meaning of 'higher rate child') in relation to an individual for a session of care, and if the session of care is not provided by an in home care service, then the applicable percentage is determined in accordance with clause 3A instead. The applicable percentage in relation to a 'higher rate child' is 30 percentage points higher than the applicable percentage in relation to a basic case, with a maximum applicable percentage of 95%. The exception is where an individual's adjusted taxable income for the income year is equal to or above the upper income threshold, the applicable percentage in relation to a higher rate child is 0% (the same as for a child other than a higher rate child).

Higher rate child

New clause 3B sets out when a child is considered a 'higher rate child'.

New subclause 3B(1) outlines the conditions that need to be satisfied in order for a child to be a 'higher rate child' in relation to an individual for a session of care provided to the child in a CCS fortnight. The conditions that need to be satisfied are as follows:

a)

the child (the 'relevant child') satisfies the conditions in subclause 3B(2) in relation to the individual and the CCS fortnight; and

b)

another child (the 'other child') satisfies the conditions in subclause 3B(2) or (3) in relation to the individual and the CCS fortnight; and

c)

either the other child is older than the relevant child, or if the relevant child and the other child were born on the same day-the other child is ranked above the relevant child for the CCS fortnight by a determination under subclause 3B(5).

The conditions in subclause 3B(2) are:

a)

the child must be under six years of age on the first Monday of the CCS fortnight; and

b)

a determination under paragraph 67CC(1)(a) of the Family Assistance Administration Act determines that the individual is eligible for CCS by fee reduction for the child; and

c)

that determination is in effect in relation to the first Monday of the CCS fortnight.

The conditions in subclause 3B(3) are:

a)

the child is under six years of age on the first Monday of the CCS fortnight; and

b)

a determination under paragraph 67CC(1)(a) of the Family Assistance Administration Act determines that a person who is a partner of the individual on the first Monday of the CCS fortnight is eligible for CCS by fee reduction for the child; and

c)

that determination is in effect in relation to the first Monday of the CCS fortnight.

The example set out below illustrates when a child is considered a 'higher rate child' and the applicable percentage that would apply.

Example

Craig is partnered with Alison. Craig has made a claim in relation to his two children aged 6 and 4, and the Secretary has determined under paragraph 67CC(1)(a) of the Family Assistance Administration Act that Craig is eligible for CCS for both of his children. Alison has also made a claim in relation to her child aged 2 and the Secretary has likewise determined that Alison is eligible for CCS for her child.

For the purposes of determining the amount of CCS for Craig for a week in respect of his child aged 6, the child aged 6 is not considered a 'higher rate child' because a higher rate child must be aged under six. Therefore, this is a basic case and the applicable percentage is determined in accordance with clause 3 of Schedule 2, which sets out the applicable percentage for a basic case.

For the purposes of determining the amount of CCS for Craig for a week in respect of his child aged 4, the child aged 4 is not considered a 'higher rate child', as there is no 'other child' who is aged under six who is older than the child aged 4. Therefore, this is a basic case and the applicable percentage is determined in accordance with clause 3 of Schedule 2.

For the purposes determining the amount of CCS for Alison for a week in relation to her child aged 2, the child aged 2 is considered a 'higher rate child' because Alison's partner's child who is aged 4, is considered the 'other child'. Therefore, the applicable percentage for the child aged 2 is determined in accordance with clause 3A of Schedule 2.

Determinations ranking children born on same day

In families where there is more than one child under the age of 6 born on the same day, new subclauses 3B(4) to (7) allow the Secretary to determine which child is the 'other child' for the purposes of subclause 3B(1).

New subclause 3B(4) provides that subclause 3B(5) applies where there is a group of two or more children who were all born on the same day; and at least one child in the group satisfies the conditions in subclause 3B(2) in relation to an individual and a CCS fortnight; and every child in the group satisfies the conditions in subclause 3B(2) or (3) in relation to that individual and that CCS fortnight.

New subclauses 3B(5) and (6) provide that the Secretary must determine, in writing, that one of the children in the group is ranked above the other child or children in the group for the CCS fortnight, in accordance with any prescribed Minister's Rules.

New subclause 3B(7) provides that a determination under subclause (3) is not a legislative instrument for the purposes of the Legislation Act 2003. This provision is explanatory only, as such a determination will be an administrative decision in relation to whether a particular child is older than another child, and not of legislative character.

Example

Craig has two children aged 4, one born in the morning and the other born in the afternoon of the same day. Craig has made a claim in relation to his two children, and the Secretary has determined under paragraph 67CC(1)(a) of the Family Assistance Administration Act that Craig is eligible for CCS for both of his children. In this case, the Secretary has the power to determine which of the two 4 year old children would be ranked above the other. If the Secretary ranks the child born in the afternoon above the child born in the morning, then the child born in the morning would be the 'higher rate child' and the child born in the afternoon would be the 'other child' for the purposes of working out whether the applicable percentages in clause 3 or clause 3A of Schedule 2 would apply.

Items 1, 3, 6, 8 - Subsection 3(1), Subclause 2(1) of Schedule 2, Subclause 3(1) of Schedule 2, Paragraph 7(c) of Schedule 2

These items make minor consequential amendments required as a result of the amendments made by item 7. Specifically, these items amend provisions that refer to current clause 3 of Schedule 2 of the Family Assistance Act (which prescribes the applicable percentage for a basic case) to also include reference to new clause 3A (which prescribes the applicable percentage for other cases, where there is a 'higher rate child').

Item 9 - Application provision

Item 9 provides that the amendments made by Part 1 of Schedule 2 of the Bill apply in relation to sessions of care provided to a child in a CCS fortnight that starts on or after the commencement of this item.

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

Item 10 - Paragraph 67CC(2)(b)

Currently, the Secretary may determine under paragraph 67CC(2)(b) of the Family Assistance Administration Act that an individual is no longer eligible for CCS by fee reduction for a child, if the Secretary has made determinations under subsection 67CD(8), for at least 52 weeks. Subsection 67CD(8) provides that if the Secretary is not satisfied that an individual meets the conditions of entitlement for either CCS (as set out in subsection 67CD(2)), ACCS (child wellbeing) or ACCS (temporary financial hardship) (as set out in subsection 67CD(3), ACCS (grandparent) (as set out in subsection 67CD(4)), or ACCS (transition to work) (as set out in subsection 67CD(6)), for one or more sessions of care in a week, the Secretary must determine that the individual is not entitled to be paid CCS or ACCS for those sessions.

Item 10 repeals paragraph 67CC(2)(b) of the Family Assistance Administration Act and replaces it with a new paragraph to allow the Minister to prescribe a different number of consecutive weeks in Minister's Rules. The effect is if the Minister prescribes a different number of weeks in the Minister's Rules, then the Secretary may determine an individual is no longer eligible for CCS if the Secretary has made determinations of no entitlement to be paid CCS or ACCS in relation to at least the number of weeks as prescribed in the Minister's Rules.

This amendment is required to enable the period of time in paragraph 67CC(2)(b) to be aligned with any future changes to other cessation of CCS eligibility periods, as provided for in item 11.

Item 11 - At the end of subsection 67CC(2)

Item 11 inserts new paragraphs 67CC(2)(d) and (e) into the Family Assistance Administration Act to provide further circumstances when the Secretary may determine that an individual is no longer eligible for CCS by fee reduction for the child.

New paragraph 67CC(2)(d) provides that the Secretary may determine that an individual is no longer eligible for CCS by fee reduction if no sessions of care, as evidenced by reports made under section 204B of the Family Assistance Administration Act, have been provided for the child for at least 26 consecutive weeks, or a different number of consecutive weeks as prescribed by the Minister's rules (if any).

New paragraph 67CC(2)(e) provides that the Secretary may determine that an individual is no longer eligible for CCS by fee reduction if the Secretary is satisfied that the individual does not intend that the child be enrolled for care by a child care service, or the Secretary is satisfied that the individual does not intend that the child attend any sessions of care provided by a child care service.

The ability to change the period of weeks under new paragraph 67CC(2)(d) is required to ensure any emerging issues following commencement of Schedule 2, Part 1, can be addressed. The appropriateness of the 26 week period will be considered as part of ongoing monitoring and compliance work for the measure.

Item 12 - Application provisions

Subitem 12(1) provides that the repeal and substitution of paragraph 67CC(2)(b) of the Family Assistance Administration Act, as made by this Part, applies in relation to determinations under subsection 67CC(2) (determination that an individual is no longer eligible for CCS) made on or after the commencement of this item that relate to determinations under paragraph 67CC(1)(a) (determinations that an individual is eligible for CCS by fee reduction for a child) and determinations under subsection 67CD(8) (determinations that an individual is not entitled to be paid CCS or ACCS) made before, on or after the commencement of this item. That is, from the commencement of this item, the Secretary may make determinations that an individual is no longer eligible for CCS in accordance with new paragraph 67CC(2)(b), even if that individual's determination of eligibility for CCS under paragraph 67CC(1)(a) was made before commencement of this item, or some or all of the determinations of no entitlement to be paid CCS or ACCS were made before the commencement of this item.

Subitem 12(2) provides that the repeal and substitution of paragraph 67CC(2)(d) of the Family Assistance Administration Act, as made by this Part, applies in relation to determinations under subsection 67CC(2) (determination that an individual is no longer eligible for CCS) made on or after the commencement of this item that relate to determinations under paragraph 67CC(1)(a) (determinations that an individual is eligible for CCS by fee reduction for a child) made before, on or after the commencement of this item and a period under subparagraph 67CC(2)(d)(i) or (ii) (as added by this Part) that starts before, on or after the commencement of this item. That is, from the commencement of this item, the Secretary may make determinations that an individual is no longer eligible for CCS in accordance with new paragraph 67CC(2)(d), even if the period in which no sessions of care were provided under subparagraph 67CC(2)(d)(i) or (ii) started before the commencement of this item.

Subitem 12(3) provides that paragraph 67CC(2)(e) of the Family Assistance Administration Act, as added by this Part, applies in relation to determinations under subsection 67CC(2) (determination that an individual is no longer eligible for CCS) made on or after the commencement of this item that relate to determinations under paragraph 67CC(1)(a) (determinations that an individual is eligible for CCS by fee reduction for a child) made before, on or after the commencement of this item. That is, from the commencement of this item, the Secretary may make determinations that an individual is no longer eligible for CCS in accordance with new paragraph 67CC(2)(e), even if that individual's determination of eligibility for CCS under paragraph 67CC(1)(a) was made before the commencement of this item.

Part 2 - Phase 2 amendments

A New Tax System (Family Assistance) Act 1999

Item 13 - At the end of subclause 3B(1) of Schedule 2

Item 13 adds new paragraph 3B(1)(d) to clause 3B(1) of Schedule 2 of the Family Assistance Act, which sets out the conditions that need to be met for a child to be a 'higher rate child' in relation to an individual for a session of care provided to the child in a CCS fortnight. The additional condition added by the new paragraph requires that sessions of care must have been provided to the 'other child' (i.e. another older child who satisfies the conditions in subclause 3B(2) or (3)), as evidenced by reports under section 204B of the Family Assistance Administration Act, in relation to at least one week in a period of 14 consecutive weeks (or a different number of weeks as prescribed by the Minister's rules, if any) ending at the end of the CCS fortnight. This amendment provides an additional mechanism to safeguard the integrity of the measure, supplementing the 26 week cessation of eligibility provided for at item 11.

Item 14 - Application provision

Item 14 provides that paragraph 3B(1)(d) of Schedule 2 to the Family Assistance Act, as added by this Part, applies in relation to determining whether a child is a higher rate child in relation to an individual for a session of care provided to the child in a CCS fortnight that starts on or after the commencement of this item.

Item 14 also provides that paragraph 3B(1)(d) of Schedule 2 to the Family Assistance Act, as added by this Part, applies in relation to a period under subparagraph 3B(1)(d)(i) or (ii) of that Schedule (as added by this Part) that starts before, on or after the commencement of this item.