EXPLANATORY STATEMENT
A New Tax System (Family Assistance) (Child Care Benefit — Activities counting towards activity requirements) Determination 2006
Summary
This Determination is made under subsection 17A(2) of the A New Tax System (Family Assistance) Act 1999 (the Family Assistance Act). It is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The purpose of this Determination is to specify certain activities that will count towards meeting activity requirements under new section 17A of the Family Assistance Act. The measures introduced are part of the Government’s welfare to work reform measures, which aim to help parents to enter or return to the paid workforce.
Background
New section 17A of the Family Assistance Act specifies the activities to be performed by individuals who must meet activity requirements to qualify for child care benefit (CCB) in respect of care provided by an approved child care service. Generally, these individuals must engage in one or more of specified activities for 15 hours during the relevant week or an average of 30 hours over the relevant two-week period. The activities include paid work, a training course or a course of education for the purpose of improving work skills and/or employment prospects or other determined activities.
Under new subsection 17A(2) of the Family Assistance Act, the Minister may determine that other activities count towards meeting activity requirements. This Determination therefore indicates the types of activities that will be taken to meet those requirements, such as actively looking for work or actively setting up a business that has not yet commenced operation. Similarly, the Government recognises that people should not lose access to CCB because of their specific circumstances, for example, when they access leave or are unable to work in their business on account of illness or injury.
This determination specifies a range of ‘activities’ for the purposes of accessing CCB. Its commencement coincides with commencement of the A New Tax System (Family Assistance) (Child Care Benefit — Individuals who must meet activity requirements) Determination 2006, made pursuant to new subsection 14(1C) of the Family Assistance Act, which specifies classes of individuals who must meet activity requirements.
The Department has not undertaken consultations with respect to this Determination because it does not have a significant impact on business or restrict competition and because it gives effect to a decision in terms announced in the 2005-2006 Budget that alters the obligations and/or entitlements of individuals and not child care services.
The Office of Regulatory Review (ORR) has advised that a Regulation Impact Statement is not required for this Determination (ORR RIS ID: 8397).
Explanation of the sections
Name of Determination
Section 1 states the name of this Determination.
Commencement
Section 2 states that this Determination commences on 3 July 2006.
Interpretation
Section 3 contains interpretation provisions.
Activities that count towards meeting activity requirements
Section 4 provides that the activities that count towards meeting the activity requirements for an individual under section 17A of the Family Assistance Act are set out in Schedule 1.
Schedule 1 Activities that count towards meeting activity requirements
Schedule 1 sets out the activities that count towards meeting the activity requirements for an individual under section 17A of the Family Assistance Act. The activities that are covered are:
- actively setting up a business that has not yet started to operate;
- actively looking for work;
- voluntary work that provides work experience that could normally be expected to enhance a person’s work prospects;
- parental leave, annual leave, sick leave, long service leave and other employment-related paid leave; and
- for a self employed person – not working – where the person is ill or injured and has obtained a doctor’s certificate or where the person is taking time off that would, if they were a paid employee, be described as annual leave, long service leave or parental leave.
Overview
The "A New Tax System (Family Assistance) (Child Care Benefit — Activities counting towards activity requirements) Determination 2006" was enacted to clarify and specify activities that count towards the activity requirements for eligibility under the A New Tax System (Family Assistance) Act 1999. This Determination, issued under subsection 17A(2) of the Family Assistance Act, was introduced to ensure that parents seeking to enter or return to the workforce can access child care benefits without unnecessary barriers. The enactment aimed to support the government's welfare-to-work reform measures by recognising various activities that contribute to an individual’s engagement in the workforce. The policy objective is to assist individuals in meeting the necessary activity requirements for child care benefits, including activities such as actively looking for work, setting up a business, and participating in voluntary work that enhances employment prospects.
Scope and Application
The A New Tax System (Family Assistance) (Child Care Benefit — Activities counting towards activity requirements) Determination 2006 applies to individuals who are seeking to qualify for child care benefit (CCB) under the A New Tax System (Family Assistance) Act 1999. This Determination specifies activities that count towards meeting the activity requirements set out in new section 17A of the Family Assistance Act, which is part of the Government’s welfare to work reform measures designed to help parents enter or return to the paid workforce. The activities covered include paid work, training or education aimed at improving work skills and employment prospects, actively looking for work, setting up a business that has not yet commenced operation, voluntary work that enhances work prospects, and various types of employment-related leave, including parental, annual, sick, and long service leave. The Determination applies across Australia and came into effect on 3 July 2006. There are no exclusions or exemptions specified in this Determination, but it is subject to the overarching provisions of the Family Assistance Act and any subordinate instruments that may further define or refine its application.
Key Provisions
The primary operative sections of the A New Tax System (Family Assistance) (Child Care Benefit — Activities counting towards activity requirements) Determination 2006 (the Determination) are found in section 4, which specifies the activities that count towards meeting the activity requirements for individuals under section 17A of the Family Assistance Act. These activities are detailed in Schedule 1, and include actively setting up a business, actively looking for work, voluntary work providing work experience, employment-related paid leave, and not working due to illness or injury for self-employed individuals. Section 2 provides that the Determination commences on 3 July 2006, and section 3 outlines interpretation provisions to aid in understanding the terms used in the Determination.
The obligations and requirements imposed by the Determination on the parties it governs, primarily individuals seeking child care benefit (CCB), are to engage in one or more of the specified activities for 15 hours during the relevant week or an average of 30 hours over a two-week period. This is in line with the requirements set out in section 17A of the Family Assistance Act. The Determination ensures that these activities are recognised as fulfilling the activity requirements, thus facilitating continued access to CCB. For instance, an individual actively setting up a business or actively looking for work is considered to be meeting the activity requirements, provided they meet the time thresholds stipulated.
The Determination does not explicitly state offences, penalties, or consequences for breach. However, non-compliance with the activity requirements set out in the Family Assistance Act may result in individuals losing their eligibility for CCB. The Family Assistance Act may impose its own penalties for failure to meet these requirements. As such, the Determination works in conjunction with the Family Assistance Act to enforce compliance with the stipulated activities to maintain CCB eligibility.