A New Tax System (Family Assistance) (Child Care Benefit - Children in respect of whom no-one is eligible) Amendment Determination 2008 (No. 1)

Overview

The A New Tax System (Family Assistance)(Child Care Benefit – Children in respect of whom no-one is eligible) Amendment Determination 2008 (No.1) was enacted to address a legislative gap that arose from the introduction of the ‘regular care child’ concept under the Child Support Legislation Amendment (Reform of the Child Support Scheme – New Formula and Other Measures) Act 2006. This Determination was made under subsection 49(3) of the A New Tax System (Family Assistance) Act 1999 (the Family Assistance Act) and is a legislative instrument for the purposes of the Legislative Instruments Act 2003. The objective of this Determination is to amend the A New Tax System (Family Assistance)(Child Care Benefit – Children in respect of whom no-one is eligible) Determination 2006 (the Children in respect of whom no-one is eligible Determination), ensuring that the concept of a ‘regular care child’ is incorporated into the eligibility criteria for child care benefit (CCB) under Division 4 of Part 3 of the Family Assistance Act. This amendment ensures consistency in treatment between FTB children and regular care children regarding CCB eligibility. The changes made by this Determination became effective the day after it was registered.

Scope and Application

The New Tax System (Family Assistance)(Child Care Benefit – Children in respect of whom no-one is eligible) Amendment Determination 2008 (No.1) applies to individuals and entities involved in the administration of child care benefits under the A New Tax System (Family Assistance) Act 1999. This includes government departments and agencies responsible for the implementation and enforcement of family assistance laws, as well as individuals and families who are recipients or applicants of child care benefits. The Determination is made under subsection 49(3) of the Family Assistance Act and is designed to align the eligibility criteria for child care benefits with the introduction of the 'regular care child' concept. This concept was introduced by the Child Support Legislation Amendment (Reform of the Child Support Scheme – New Formula and Other Measures) Act 2006, which came into effect on 1 July 2008. The Determination ensures that individuals who have at least 35% care for a child, known as 'FTB children', and those who have between 14% to 34% care, known as'regular care children', are treated equally in terms of eligibility for child care benefits. This legislative instrument is applicable nationally across Australia as it amends a Commonwealth determination. There are no specific exclusions or exemptions outlined in this Determination, but it is noted that it is not regulatory in nature and will not impose significant compliance costs on businesses or individuals.

Key Provisions

The A New Tax System (Family Assistance)(Child Care Benefit – Children in respect of whom no-one is eligible) Amendment Determination 2008 (No.1) (the Determination) amends the A New Tax System (Family Assistance)(Child Care Benefit – Children in respect of whom no-one is eligible) Determination 2006 (the Children in respect of whom no-one is eligible Determination). This amendment follows the introduction of the 'regular care child' concept in the Family Assistance Act, as a result of the Child Support Legislation Amendment (Reform of the Child Support Scheme – New Formula and Other Measures) Act 2006. The primary objective of the Determination is to ensure that the eligibility criteria for child care benefit (CCB) are consistent with the new definitions of 'FTB child' and'regular care child'. Section 3 of the Determination amends the Children in respect of whom no-one is eligible Determination by including the definition of 'regular care child' in note 2 of section 3. This ensures that the term 'FTB child' as used in section 4 of the Determination includes both FTB children and regular care children. The Determination imposes obligations on entities and individuals governed by the Family Assistance Act, primarily to ensure compliance with the updated eligibility criteria for CCB. Specifically, it requires that the new definition of'regular care child' be applied consistently across all relevant provisions of the Children in respect of whom no-one is eligible Determination. This means that entities and individuals must now consider whether a child qualifies as a regular care child in addition to an FTB child when determining eligibility for CCB. By aligning the eligibility criteria, the Determination ensures that children who have at least 14% but less than 35% care from an individual are treated the same as FTB children in terms of CCB eligibility. There are no specific offences, penalties, or civil/criminal consequences outlined in the Determination for breach of its provisions. However, non-compliance with the updated eligibility criteria for CCB, as specified in the Determination, could potentially lead to disputes and claims regarding child care benefit eligibility. While the Determination itself does not prescribe penalties, any subsequent legal challenges or administrative actions related to incorrect application of the eligibility criteria could result in financial liabilities or other legal consequences for the parties involved. The Determination is designed to streamline the application of the new child care benefit rules, ensuring that all relevant stakeholders are aware of and comply with the updated legislative framework.