A New Tax System (Family Assistance) (Administration) (Child care benefit - when enrolment ceases (number of weeks)) Specification 2007

Overview

The A New Tax System (Family Assistance) (Administration) (Child care benefit — when enrolment ceases (number of weeks)) Specification 2007 was enacted to address the need for a clear definition of when a child's enrolment in child care ceases for the purposes of family assistance law. This Specification was made under subsection 219AD(3) of the A New Tax System (Family Assistance) (Administration) Act 1999 (the Family Assistance Administration Act) and is a legislative instrument for the purposes of the Legislative Instruments Act 2003. The Specification aims to clarify the number of weeks of a child's absence from care, when no sessions of care are reported, which constitutes the cessation of the child's enrolment. This is particularly relevant with the introduction of the Child Care Management System (CCMS) as per the Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007. The enacting body for this Specification was the Parliament of Australia, with the overarching policy objective being to ensure accurate and timely reporting of child care enrolments to facilitate the appropriate administration of family assistance benefits.

Scope and Application

The A New Tax System (Family Assistance) (Administration) (Child care benefit — when enrolment ceases (number of weeks)) Specification 2007 applies to approved child care services and their enrolments of children for care, with specific focus on the cessation of such enrolments based on the absence of reported care sessions over a specified number of weeks. This Specification operates within the framework of the A New Tax System (Family Assistance) (Administration) Act 1999 and is applicable to Commonwealth jurisdictions across Australia. It specifies different cessation periods for various types of child care services and care scenarios, distinguishing between services for which an enrolment advance was paid and those for which it was not. The Specification delineates that for centre-based long day care, family day care, and in-home care services, where an enrolment advance was paid, a child’s enrolment is deemed to cease after six weeks of no reported care sessions, whereas for other scenarios, the cessation occurs after 26 weeks. For occasional care services, the enrolment ceases after 26 weeks of no sessions, and for outside school hours care services, the period is 10 weeks if an enrolment advance was paid, and 26 weeks otherwise. The Specification allows for further specification of these periods through subordinate instruments, providing flexibility in its application.

Key Provisions

The New Tax System (Family Assistance) (Administration) (Child care benefit — when enrolment ceases (number of weeks)) Specification 2007 specifies the number of weeks of a child's absence from care that constitute the cessation of the child’s enrolment for the purposes of family assistance law (Section 3). This Specification is made under subsection 219AD(3) of the A New Tax System (Family Assistance)(Administration) Act 1999. The primary objective is to align the cessation of child care enrolments with the reporting requirements under the new Child Care Management System (CCMS), introduced by the Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007. Under this Specification, the cessation of a child's enrolment for care is determined based on the type of care service and whether an enrolment advance was paid (Section 3(a)-(c)). For instance, if an enrolment advance was paid for care by an approved centre-based long day care service, an approved family day care service, or an approved in-home care service, the enrolment is considered ceased after 6 weeks of no reported care sessions (Section 3(a)(i)). Conversely, if no enrolment advance was paid, the enrolment is deemed ceased after 26 weeks (Section 3(a)(ii)). For approved occasional care services, the enrolment is considered ceased after 26 weeks of no reported care sessions (Section 3(b)). For approved outside school hours care services, the period is 10 weeks if an enrolment advance was paid and not during school holiday sessions, and 26 weeks otherwise (Section 3(c)(i) and (ii)). These provisions aim to ensure consistency and clarity in the administration of child care benefits. Approved child care services have specific obligations under this Specification. They must notify the Secretary of the Department of Family and Community Services of any child enrolments under subsection 219A(1) of the Family Assistance Administration Act. Additionally, if a service provides care to a child again after an enrolment has ceased, it must treat this as a new enrolment and notify the Secretary accordingly (Section 219R). The service can also elect to receive an enrolment advance for the enrolment, which is recoverable if the enrolment ceases (Section 219RC). Breach of the obligations set out in this Specification can result in various consequences. For example, if a service fails to notify the Secretary of a new enrolment, it may be subject to administrative or financial penalties. Additionally, if an enrolment advance is paid and the enrolment subsequently ceases, the amount of the advance is recoverable from the service through an offset (Section 219RC). The precise penalties for non-compliance are not detailed in this Specification, but they can include fines or other financial penalties as prescribed by the relevant legislation.