EXPLANATORY STATEMENT
Child Care Benefit (Breach of Conditions for Continued Approval) Amendment Determination 2001 (No. 1)
Summary
This Determination is made under subsection 200(5) of the A New Tax System (Family Assistance) (Administration) Act 1999 (the Administration Act).
The purpose of this Determination is to amend the Child Care Benefit (Breach of Conditions for Continued Approval) Determination 2000 (the Breach of Approval Determination), which sets out factors to be taken into account by the Secretary in applying a sanction on an approved child care service that the Secretary is satisfied has not complied, or is not complying, with a condition for the continued approval of the service for child care benefit (CCB) purposes.
The amendments made by this Determination set out additional factors to be taken into account by the Secretary in applying the cancellation sanction. These amendments are consequential on the introduction, from 1 July 2001, of new quality assurance rules relating to approval and continued approval of family day care services by the Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Amendment Determination 2001 (No. 1).
Background
Under the A New Tax System (Family Assistance) Act 1999, a person may be eligible for CCB for child care provided by an “approved child care service”. An “approved child care service” is a service which is approved by the Secretary in accordance with Division 1 of Part 8 of the Administration Act. Once a child care service has been approved, it must comply with certain conditions in order to continue to be approved. If it fails to comply, the Secretary may impose various sanctions on the service under section 200 of the Administration Act. In applying the sanctions, the Secretary is to take into account the factors determined by the Minister, in the Breach of Approval Determination, under subsection 200(5) of the Administration Act.
This Determination amends the Breach of Approval Determination to take into account the new quality assurance rules for continuing approval of family day care services specified in sections 23A and 23B of the Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Determination 2000 (the Approval Determination), as inserted by the Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Amendment Determination 2001 (No. 1). Section 23A of the Approval Determination provides that an approved family day care service that, at the time of its approval, was registered as a participant in the Family Day Care Quality Assurance system administered by the National Childcare Accreditation Council must participate in the system in order to continue to be approved for CCB purposes. Section 23B requires that an approved family day care service that, at the time of its approval, was not registered as a participant in the Family Day Care Quality Assurance system must, after the day specified by the Council as the registration day, be registered as a participant in the system, and participate in the system.
This Determination specifies factors to be taken into account by the Secretary in considering whether to cancel the approval of an approved family day care service under paragraph 200(1)(e) of the Act if the service has failed to comply with either section 23A or section 23B of the Approval Determination.
These factors are similar to the existing factors to be taken into account by the Secretary in considering whether to apply the cancellation sanction in respect of a centre based long day care service that has not participated in the Quality Improvement and Accreditation System (QIAS), as required by section 23 of the Approval Determination.
Explanation of the clauses
Name of Determination
Clause 1 states the name of this Determination.
Commencement
Clause 2 states that this Determination commences on 1 July 2001, immediately after the commencement of the Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Amendment Determination 2001 (No. 1).
Amendment of Breach of Approval Determination
Clause 3 states that Schedule 1 amends the Breach of Approval Determination.
Explanation of the items in Schedule 1
Item 1 – section 5, heading
Item 1 makes a consequential amendment to the heading of section 5 so that it is clear that this section only applies in relation to centre based long day care services.
Item 2 – additional factors to be taken into account in applying cancellation sanction – family day care services
Item 2 inserts a new section 5A which applies in relation to approved family day care services.
The new subsection 5A(1) provides that there are additional factors that must be taken into account by the Secretary in considering whether to cancel the approval of an approved family day care service under paragraph 200(1)(e) of the Administration Act if that service has not complied with the rule in either section 23A (participation in Family Day Care Quality Assurance system) or section 23B (registration and participation in that system) of the Approval Determination.
Subsection 5A(2) provides for the additional factor that must be taken into account by the Secretary in considering whether to cancel the approval of an approved family day care service where the service has failed to comply with the requirement in either section 23A, paragraph 23B(2)(b) or paragraph 23B(2)(c) of the Approval Determination to participate in the Family Day Care Quality Assurance system. In this situation, the Secretary must take into account the extent to which a specified process has been completed. This process involves the National Childcare Accreditation Council reporting to the Secretary that the service is not complying with the rule, and the Secretary informing clients of the service of the possible impact on the clients’ eligibility for CCB if the service continues to breach the rule.
Subsection 5A(3) applies where an approved family day care service has not complied with paragraph 23B(2)(a) of the Approval Determination, that is, the service has not registered with the National Childcare Accreditation Council as a participant in the Family Day Care Quality Assurance system from the day specified by the Council as the registration day. In this situation the Secretary, in considering whether to cancel the service’s approval, must take into account the extent to which a specified process has been completed. This process involves the National Childcare Accreditation Council reporting to the Secretary that the service is not registered as a participant in the Family Day Care Quality Assurance system, and the Secretary informing clients of the service of the possible impact on their eligibility for CCB if the service does not register as a participant in the system.
The new subsection 5A(4) defines the term “client” which is referred to in paragraphs 5A(2)(b) and 5A(3)(b). A “client” is an individual who is liable to pay child care fees.