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Child Care Benefit (Breach of Conditions for Continued Approval) Amendment Determination 2003 (No. 1)

Child Care Benefit (Breach of Conditions for Continued Approval) Amendment Determination 2003 (No. 1)

Administered by Department of Social Services

Legislation au F2007B00312 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

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.

Overview

The Child Care Benefit (Breach of Conditions for Continued Approval) Amendment Determination 2003 (No. 1) was enacted to amend the Child Care Benefit (Breach of Conditions for Continued Approval) Determination 2000, addressing the need for updated factors to be considered when applying sanctions to child care services that fail to meet the conditions for continued approval under the A New Tax System (Family Assistance) (Administration) Act 1999. This amendment was necessitated by the introduction of new quality assurance rules for outside school hours care services, as specified in the Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Amendment Determination 2003 (No. 2). The objective of this Determination, made under the authority of the relevant Minister, is to ensure that the Secretary considers additional factors when imposing sanctions on services that do not comply with the new quality assurance requirements, thereby maintaining the integrity and quality of child care services eligible for the Child Care Benefit. The Determination specifies that in considering the cancellation of approval for an approved outside school hours care service that fails to comply with quality assurance rules, the Secretary must take into account the extent to which certain processes have been completed, such as the National Childcare Accreditation Council reporting non-compliance and the Secretary notifying clients of potential impacts on their eligibility for the Child Care Benefit. This legislative adjustment aims to provide a more robust framework for the continued approval of child care services, ensuring they meet the required standards to maintain eligibility for government assistance.

Scope and Application

The Child Care Benefit (Breach of Conditions for Continued Approval) Amendment Determination 2003 (No. 1) is a legislative instrument made under the A New Tax System (Family Assistance) (Administration) Act 1999. This Determination applies to approved child care services that provide child care for the purposes of child care benefit (CCB) eligibility. Specifically, it concerns outside school hours care services and amends the Child Care Benefit (Breach of Conditions for Continued Approval) Determination 2000 to include additional factors the Secretary must consider when deciding to impose sanctions, such as cancellation of approval, on services that fail to comply with the quality assurance rules introduced by another Determination made on the same day. This Amendment Determination is applicable nationally in Australia, as it operates under the Commonwealth legislative framework. The new quality assurance rules, which require participation in the Outside School Hours Care Quality Assurance system, apply to services approved from 1 July 2003 onwards. The Determination does not specify any exclusions or exemptions but outlines the additional factors that the Secretary must consider when imposing sanctions, thereby extending the scope of the sanctions available under the FA Administration Act. The Amendment Determination details specific procedures the Secretary must follow when considering sanctions for non-compliance with the new quality assurance rules, including the requirement for the National Childcare Accreditation Council to report non-compliance and for the Secretary to inform affected clients of the potential impact on their eligibility for CCB. These amendments ensure consistency in how sanctions are applied across different types of approved child care services. The Determination comes into effect on 1 July 2003, aligning with the commencement of the related quality assurance rules. The scope of application is further defined and potentially extended through subordinate instruments which may provide further details or clarifications on the implementation of the quality assurance rules and the application of sanctions.

Key Provisions

The Child Care Benefit (Breach of Conditions for Continued Approval) Amendment Determination 2003 (No. 1) amends the existing Child Care Benefit (Breach of Conditions for Continued Approval) Determination 2000. It introduces additional factors to be considered by the Secretary when deciding whether to cancel the approval of an approved child care service for child care benefit (CCB) purposes, specifically for outside school hours care (OSHC) services. This amendment is consequential upon the introduction of new quality assurance rules for the approval and continued approval of OSHC services (sections 24A and 24B of the Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Determination 2000). The new factors that must be considered when cancelling the approval of an OSHC service include the extent to which the National Childcare Accreditation Council has reported the non-compliance to the Secretary and the extent to which the Secretary has informed clients of the potential impact on their eligibility for CCB (section 5B(1)). If an approved family day care service has not registered with the Outside School Hours Care Quality Assurance system, the Secretary must consider the extent to which the National Childcare Accreditation Council has reported this non-compliance and the extent to which the Secretary has informed clients of the potential impact on their eligibility for CCB (section 5B(2)). The Act imposes specific obligations on approved child care services, particularly those providing OSHC services, to ensure continued approval for CCB purposes. These services must participate in the Outside School Hours Care Quality Assurance system administered by the National Childcare Accreditation Council. They must either maintain quality care or make progress towards such care, as required by sections 24A and 24B of the Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Determination 2000. Failure to comply with these obligations can result in the Secretary considering the cancellation of the service’s approval. There are no explicit offences, penalties, or civil/criminal consequences stated within this Determination. However, the primary consequence of non-compliance is the potential cancellation of the service’s approval, which would affect the service's eligibility to provide child care for which clients can claim the CCB. The exact administrative or financial penalties for such cancellations are not detailed within this Determination but would typically be governed by the broader provisions of the A New Tax System (Family Assistance) (Administration) Act 1999.

Area of Law: Family Law; Administrative Law
Instrument: Regulation
Concepts: Commencement Provisions; Offence Provisions; Compliance Obligations; Enforcement Powers

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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