EXPLANATORY STATEMENT
Child Care Benefit (Breach of Conditions for Continued Approval) Amendment Determination 2003 (No. 1)
Summary
This Determination is made under subsection 200(5) of the A New Tax System (Family Assistance) (Administration) Act 1999 (the FA 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 to 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 2003, of new quality assurance rules relating to approval and continued approval of outside school hours care services by the Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Amendment Determination 2003 (No. 2).
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 FA 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 FA 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 FA Administration Act.
This Determination amends the Breach of Approval Determination to take into account the new quality assurance rules for continuing approval of outside school hours care services specified in sections 24A and 24B 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 2003 (No. 2). Section 24A of the Approval Determination provides that an approved outside school hours care service which, at the time of its approval, was registered as a participant in the Outside School Hours 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 24B requires that an approved outside school hours care service which, at the time of its approval, was not registered as a participant in the Outside School Hours Care Quality Assurance system (services approved before 1 July 2003 or services approved after 1 July 2003 with effect from before 1 July 2003) must be registered as a participant in the system after the day specified by the Council as the registration day, 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 outside school hours care service under paragraph 200(1)(e) of the FA Administration 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 as required by section 23 of the Approval Determination, or in respect of a family day care service that has not participated in the Family Day Care Quality Assurance system as required by section 23A 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 2003 (this is the commencement day of the Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Amendment Determination 2003 (No. 2)).
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 – additional factors to be taken into account in applying cancellation sanction – family day care services
Item 1 inserts a new section 5B which applies in relation to approved outside school hours care services.
New subsection 5B(1) provides for additional factors that must be taken into account by the Secretary in considering whether to cancel the approval of an approved outside school hours care service under paragraph 200(1)(e) of the FA Administration Act if that service has not complied with the rule in either section 24A or paragraph 24B(2)(b) or (c) of the Approval Determination. These rules require participation in Outside School Hours Care Quality Assurance system and maintenance of quality care or making progress towards such care. 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 5B(2) applies where an approved family day care service has not complied with paragraph 24B(2)(a) of the Approval Determination, that is, the service has not registered with the National Childcare Accreditation Council as a participant in the Outside School Hours 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 Outside School Hours 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.
New subsection 5B(3) defines the term “client” which is referred to in paragraphs 5B(1)(b) and 5B(2)(b). A “client” is an individual who is liable to pay child care fees. It also defines the term OSHCQA by reference to the meaning given by subsection 3(1) of the Approval Determination.