A New Tax System (Family Assistance) (Administration) (Child care benefit - amount of enrolment advance) Determination 2007

Administered by Department of Education

Legislation au F2007L04261 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

A New Tax System (Family Assistance) (Administration) (Child care benefit — amount of enrolment advance) Determination 2007

 

Summary

 

This Determination is made under section 219RB of the A New Tax System (Family Assistance) (Administration) Act 1999 (the Family Assistance Administration Act).

 

This Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

The purpose of this Determination is to determine the amount of the enrolment advance that may be paid in respect of enrolments of a specified class and to provide for the indexation of enrolment advances.

 

Background

 

The new Child Care Management System (CCMS) introduced by the Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007 (the CCMS Act) will apply to an approved child care service from the service’s ‘application day’ determined in accordance with item 91 of the CCMS Act.

 

The CCMS Act inserted new sections 219R, 219RA and 219RB in the Family Assistance Administration Act which deal with the payment of enrolment advances to approved child care services.  A service may elect to receive an enrolment advance amount in relation to an enrolment. 

 

Section 219R provides that an approved child care service may elect to receive an enrolment advance in relation to a particular enrolment.  An occasional care service is not entitled to make the election and cannot receive an enrolment advance (new subsection 219R(1) refers).

 

Section 219RA provides that the Secretary must pay the amount of the enrolment advance if an approved child care service makes an election in accordance with new section 219R in respect of an enrolment and the Secretary confirms the enrolment in accordance with new section 219AE.

 

Section 219RB provides the Secretary with the authority to determine the amount of the enrolment advance that may be paid in respect of enrolments of a specified class, and to provide for indexation of the amount determined.

 

This Determination arises in the context of the introduction of the CCMS, which has been extensively consulted with the child care sector.


A Preliminary Assessment of the impact of this proposal has been undertaken in accordance with the procedure established by the Office of Best Practice Regulation; this proposal will have minimal impact on approved child care services as it only specifies the amount to be paid to services.

 

Explanation of the sections

 

Name of Determination

 

Section 1 states the name of this Determination.

 

Commencement

 

Section 2 states that this Determination commences on the day after it is registered.

 

The Note at the end of section 2 alerts the reader to items 91 and 93 of the CCMS Act relating to the application of this Determination to an enrolment of a child occurring on or after the service’s ‘application day’. 

 

Definition

 

Section 3 provides definitions for the purposes of this Determination.  ‘CPI number’ is defined as the All Groups Consumer Price Index number (being the weighted average of the 8 Australian capital cities) published by the Australian Statistician.

 

The Note to section 3 directs the reader to subsection 3(1) of the Family Assistance Administration Act for the definitions of ‘approved child care service’ and ‘approved outside school hours care service’.  The Note also directs the reader to the A New Tax System (Family Assistance) Act 1999 for the purposes of defining ‘school holiday session’ and ‘session of care’.

 

Amount of enrolment advance

 

Section 4 provides for the amount of an enrolment advance for the 2007‑2008 financial year, and for the method by which the amount of the enrolment advance is calculated for later financial years.

 

Subparagraph 4(1)(a)(i) states that if an enrolment is for a session of care (other than a school holiday session) provided by an approved outside school hours care service, the amount of enrolment advance is $34.00 for the 2007‑2008 financial year.

 

Subparagraph 4(1)(a)(ii) states that for any enrolment (other than the type described in subparagraph 4(1)(a)(i)), the amount of enrolment advance is $125.00 for the 2007-2008 financial year.

 

The amount of the enrolment advance has been derived through consultation with the child care sector via the CCMS Industry Reference Group.

Paragraph 4(1)(b) provides for indexation of enrolment advances.  For later financial years, the amount of enrolment advance is calculated in accordance with the formula provided. The elements of the formula are also defined, and are read in conjunction with the definition of ‘CPI number’ at section 3.

 

For any later financial year, the application of the formula results in an amount which is the enrolment advance amount as specified in this Determination, plus an amount of indexation.

 

Subsection 4(2) deals with rounding of the amount that results from the application of paragraph 4(1)(b).  

Overview

The A New Tax System (Family Assistance) (Administration) (Child care benefit — amount of enrolment advance) Determination 2007 was enacted to address the issue of establishing the amount of enrolment advances that may be paid in respect of enrolments of a specified class, and to provide for the indexation of these enrolment advances. This Determination is made under section 219RB of the A New Tax System (Family Assistance) (Administration) Act 1999 and is a legislative instrument for the purposes of the Legislative Instruments Act 2003. The objective of this Determination is to implement the new Child Care Management System (CCMS) introduced by the Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007. This system allows approved child care services to elect to receive enrolment advances in relation to particular enrolments. The policy objective of this Determination is to ensure that the amount of enrolment advances is specified and indexed appropriately to account for changes in economic conditions, as determined by the All Groups Consumer Price Index number published by the Australian Statistician.

Scope and Application

The New Tax System (Family Assistance) (Administration) (Child care benefit — amount of enrolment advance) Determination 2007 applies to approved child care services, specifically excluding occasional care services, and is made under the authority of the A New Tax System (Family Assistance) (Administration) Act 1999. This Determination is intended to facilitate the introduction of the Child Care Management System (CCMS) by determining the amount of enrolment advances that can be paid to approved child care services and providing a method for the indexation of these amounts. It applies nationally across Australia, with its provisions commencing on the day after registration. The Determination sets specific amounts for enrolment advances for the 2007-2008 financial year and provides a formula for calculating those amounts for subsequent years, based on the All Groups Consumer Price Index. Notably, the Determination does not extend its application to occasional care services, which are explicitly excluded from receiving enrolment advances as per the provisions of the Family Assistance Administration Act. The Determination may be further clarified or extended through subordinate instruments, which are not explicitly detailed in the text.

Key Provisions

The main operative sections of this Determination (sections 1 to 4) establish the name and commencement of the Determination (section 1 and 2), provide definitions for key terms (section 3), and set the amount of the enrolment advance for the 2007-2008 financial year and the method for calculating it for subsequent years (section 4). Section 4 specifies that for the 2007-2008 financial year, the enrolment advance is $34.00 for sessions of care provided by approved outside school hours care services, and $125.00 for other enrolments. It also includes a formula for indexation of enrolment advances for subsequent financial years, based on the All Groups Consumer Price Index number. The Determination imposes obligations on the Secretary of the Department of Family and Community Services, as the authority responsible for making payments under the Act. Section 219RA requires the Secretary to pay the enrolment advance amount if an approved child care service makes an election in accordance with section 219R, and the Secretary confirms the enrolment in accordance with section 219AE. The Secretary must ensure that the enrolment advance is paid in accordance with the amount determined under section 4 of this Determination. There are no specific offences, penalties, or civil/criminal consequences outlined in this Determination for breach. However, any failure by the Secretary to make payments in accordance with section 219RA or this Determination may give rise to legal challenges or administrative remedies under the Family Assistance Administration Act or other relevant legislation. The primary consequence of non-compliance would be the failure to provide approved child care services with the enrolment advance amount to which they are entitled, which could impact their financial viability and ability to provide services to children and families.

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Family Law
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Legislative Instrument
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Definitions & Interpretation
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.