Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Amendment Determination 2008 (No. 1)

Administered by Department of Education, Employment and Workplace Relations

Legislation au F2009L00114 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Amendment Determination 2008 (No.1)

 

Summary

 

This Determination is made under subsection 205(1) of the A New Tax System  (Family Assistance) (Administration) Act 1999 (the Family Assistance Administration Act).

 

This Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The purpose of this Determination is to amend the Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Determination 2000 (the Approval Determination) that sets out the rules for child care services to become, and remain, approved for the purposes of child care benefit (CCB).

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 approved under section 195 of the Family Assistance Administration Act.  To be approved, and continue to be approved, a child care service must comply with the conditions specified in the Approval Determination.  Failure to comply with any of the conditions may result in a sanction being imposed on the service at the Secretary’s discretion (section 200 of the Family Assistance Administration Act refers).

This Determination amends the Approval Determination to impose a new condition of approval of a child care service. The new condition is that applicants undertake that the service will be equipped, including having software registered by the Secretary under subsection 4(3) of the Family Assistance Administration Act, and have the operational capacity to use the electronic equipment for the purpose of compliance with the conditions of continued approval imposed on an approved child care service by subsection 196(2) of the Family Assistance Administration Act.

 

If the applicant cannot make such an undertaking the service will not be approved for the purposes of the family assistance law.

 

Background

Schedule 1 of the Family Assistance Legislation Amendment (Child Care Management System and Other Measures) Act 2007 (the CCMS Act) made amendments to various provisions of the Family Assistance Act and the Family Assistance Administration Act relating to the introduction of the Child Care Management System (CCMS).  CCMS requires approved services, amongst other things, to communicate with the department using electronic means (such as an electronic interface) established and maintained by the department for this purpose, and use software registered for this purpose by the Secretary.

The CCMS amendments commenced on 1 July 2007, but start applying to an already approved service after the service’s particular ‘application day’ determined for each approved service separately under item 91 of the CCMS Act. Generally, the legislative intention is that all approved child care services will operate under CCMS by 1 July 2009. The application day of the existing approved child care services is being determined having regard to both a service’s operational capacity, and the policy need to effect the transition to CCMS of all the approved service by that date. The government made an election commitment to fast-track the transition of approved services to the CCMS. To achieve this, services seeking new approval will have to be prepared to operate after their approval in accordance with the CCMS requirements.

Amendments to the Approval Determination therefore make it a condition of approval that the person who applies for approval of a child care service under the family assistance law must undertake to be equipped, and have the capability, to use electronic interface and CCMS software. If the undertaking is not provided, the approval cannot be granted.

 

Consultation

The Government made an election commitment to fast track CCMS in its Affordable Child Care Plan. The department is implementing this commitment by minimising the number of services that go onto the Childcare Operator System (COS), the predecessor of CCMS.  In addition COS is unable to accept new services from 8 December 2008 as it is progressively decommissioned during the transition of services to CCMS.  The department has advised the child care sector via Industry Reference Group meetings and extensive regional advice presentations and has promoted the COS closure and the impact of that on new approvals on its website

 

Preliminary Assessment

A preliminary assessment of the impact of this amendment has been undertaken in accordance with the procedure established by the Office of Best Practice Regulation; this amendment has been assessed as having a low or no impact on business, individuals and the economy.  The amendment has a negligible impact on child care services seeking approval given that, under existing legislation all approved services will, be transitioned to the CCMS system by 1 July 2009.  The amendment will ensure that newly approved services will operate under CCMS, and not be disadvantaged by having to operate under COS for a period and then change to CCMS.


Explanation of sections

 

Name of Determination

 

Section 1 states the name of this Determination

 

Commencement

 

Section 2 states that this Determination commences the day after it is registered

 

Amendment of Approval Determination

 

Section 3 states that Schedule 1 amends the Approval Determination.

 

 

Explanation of items in Schedule 1

 

Items 1 and 2 – Definitions

 

Items 1 and 2 amend section 3 of the Approval Determination to insert new definitions of ‘electronic interface’ and ‘registered software’.

 

‘Electronic interface means electronic equipment approved as a way of making or withdrawing an application or claim under the family assistance law, doing a thing under the law or giving notices by the Secretary under the law.

 

‘Registered software’ means software registered under subsection 4(3) of the Family Assistance Administration Act.

 

Item 3 – Capacity to use electronic interface

 

Item 3 inserts new section 14C into the Approval Determination. New subsection 14C(1) states that an applicant for approval of a child care service for the purposes of the family assistance law must undertake that the service will be equipped to use the electronic interface (including by having registered software) to comply with the condition of continued approval imposed by subsection 196(2) of the Family Assistance Administration Act. As a result, if an applicant does not provide that undertaking, the service will not be approved.

 

New subsection 14C(2) states that the applicant must undertake that the service will have the operational capacity to use the electronic interface to comply with the condition of continued approval at subsection 196(2) of the Family Assistance Administration Act. If the applicant does not have such operational capacity, the service will not be approved.

Overview

The Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Amendment Determination 2008 (No.1) was enacted to amend the Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Determination 2000, which sets out the rules for child care services to become and remain approved for the purposes of child care benefit (CCB) under the A New Tax System (Family Assistance) (Administration) Act 1999. This Determination was made under the authority of subsection 205(1) of the Family Assistance Administration Act by the relevant department. The policy objective of this Determination is to ensure that child care services are equipped to use electronic interfaces and registered software as required by the Child Care Management System (CCMS), thereby facilitating the transition of all approved services to the CCMS by 1 July 2009. This amendment imposes a new condition of approval that applicants must undertake to have the operational capacity to use electronic equipment for compliance with the conditions of continued approval. Failure to meet this condition will result in the service not being approved for CCB purposes.

Scope and Application

The Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Amendment Determination 2008 (No.1) amends the Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Determination 2000, which sets the rules for child care services to become and remain approved for the purposes of child care benefit (CCB). This legislative instrument applies to any person or entity seeking approval for a child care service under the Family Assistance Administration Act 1999, thereby affecting the child care industry. It mandates that applicants must undertake that the service will be equipped, including having software registered by the Secretary, and have the operational capacity to use the electronic interface for compliance with the conditions of continued approval. The geographic reach of this legislation is national, as it applies throughout Australia under the Commonwealth’s family assistance framework. This Determination does not exclude any specific entities or introduce new exemptions, but rather imposes a new condition for approval that must be met to qualify for CCB. The application of this Determination may be further detailed or modified by subordinate instruments, ensuring the smooth transition to the Child Care Management System (CCMS) by 1 July 2009.

Key Provisions

The Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Amendment Determination 2008 (No.1) (the Determination) amends the Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Determination 2000 (the Approval Determination) under section 205(1) of the A New Tax System (Family Assistance) (Administration) Act 1999. This amendment introduces new conditions for approval of child care services to comply with the Child Care Management System (CCMS) requirements. Section 3 of the Determination specifies that Schedule 1 amends the Approval Determination, setting out new definitions and conditions for approval. Under the amended Approval Determination, a child care service must be equipped with the necessary electronic interface and registered software to comply with the conditions of continued approval imposed by the Family Assistance Administration Act. Specifically, section 14C(1) requires applicants to undertake that the service will have the equipment and capability to use the electronic interface, including having registered software, to comply with the continued approval conditions. If an applicant fails to provide this undertaking, the service will not be approved. Similarly, section 14C(2) mandates that the applicant must ensure the service has the operational capacity to use the electronic interface for compliance with continued approval conditions. Failure to demonstrate this capacity will result in the service not being approved. These amendments impose obligations on applicants for child care service approval to ensure their services are equipped with the necessary electronic interface and registered software. They must also demonstrate the operational capacity to use these electronic tools in compliance with continued approval conditions. This ensures that approved services can effectively communicate with the department using the CCMS, thereby facilitating the transition of all approved services to the CCMS by 1 July 2009. Failure to comply with the new conditions of approval may result in the service not being approved, which could have significant implications for the service provider. Specifically, without approval, the service would not be eligible to provide child care that qualifies for child care benefit under the family assistance law. Additionally, failure to comply with the continued approval conditions could lead to sanctions being imposed on the service at the Secretary’s discretion, as outlined in section 200 of the Family Assistance Administration Act.

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