EXPLANATORY STATEMENT
Child Care Benefit (Receipts) Rules 2000
Summary
These rules are made under subsection 219E(2) of the A New Tax System (Family Assistance) (Administration) Act 1999 (the Administration Act). Section 219E was inserted by item 61 of Schedule 2 to the A New Tax System (Family Assistance and Related Measures) Act 2000.
The purpose of these rules is to set out information to be contained in receipts, and to specify to whom receipts should be given, for the purposes of child care benefit (CCB).
Background
The A New Tax System (Family Assistance) Act 1999 (the Family Assistance Act) introduced CCB, which is a payment towards a family’s child care costs. One way in which payment of CCB may be made is by ongoing reductions of child care fees. When an individual is eligible for CCB, the child care service caring for the individual’s child will reduce the fees that the individual is liable to pay. The difference is then paid to the child care service by the Secretary. When a child care service reduces fees in this way, it is required under section 219E of the Administration Act to issue receipts to the individual, setting out the amount actually paid and the amount of the reduction, and any other information specified in rules made by the Secretary.
Subsection 219E(2) of the Administration Act provides that the Secretary may make rules regarding the issuing of receipts.
Explanation of the provisions
Part 1
Section 1 of the rules states the name of the rules, and section 2 states that the rules commence on 1 July 2000, which is the date that the CCB provisions of the Family Assistance Act will begin to operate. Section 3 contains interpretation provisions.
Part 2
Section 4 provides that receipts should be given to the person who has paid reduced child care fees. However receipts are not required in cases where the rate of CCB has been increased because the child has been determined to be at risk of serious abuse or neglect.
Section 5 lists various types of information to be contained in receipts. These items are in addition to the requirement in the Administration Act to set out the amount paid and the amount of the fee reduction. The items are:
the name of the child care service and the signature of the person issuing the receipt;
the name of the person to whom the receipt was issued (this may not be the person who is eligible for CCB, if someone else paid the fees on that person’s behalf);
the service’s ABN (Australian Business Number), if it has one;
the name of the child concerned;
the period for which payment is made;
the receipt number and date of issue;
the number of days during the current financial year on which the child has been absent from the service on a “permitted absence day” (under subsection 10(3) of the Family Assistance Act, a child may be absent from the service, without affecting entitlement to CCB, for a limited number of “permitted absence days” in a financial year).
Overview
The Child Care Benefit (Receipts) Rules 2000 were enacted to provide guidelines for the issue of receipts under the A New Tax System (Family Assistance) (Administration) Act 1999, specifically addressing the issuance of receipts for child care benefit payments. This legislation was introduced to ensure transparency and accountability in the process of child care fee reductions for families receiving child care benefit. The rules are designed to specify the information to be included in receipts and to clarify to whom these receipts should be issued. Enacted by the Parliament, the policy objective is to streamline the administration of child care benefits and to provide clarity for both the providers and recipients of child care services. The rules came into effect on 1 July 2000, aligning with the operational commencement of the child care benefit provisions in the Family Assistance Act.
Scope and Application
The Child Care Benefit (Receipts) Rules 2000 apply to individuals who are eligible for child care benefit (CCB) under the A New Tax System (Family Assistance) Act 1999 and the entities that provide child care services to these individuals. The rules specify the requirements for the issuance of receipts by child care services when they reduce fees for eligible individuals, effectively ensuring transparency and accountability in the process of CCB distribution. The rules apply across the Commonwealth of Australia, as they are made under the Administration Act, which is a federal statute. The rules do not apply in cases where the rate of CCB has been increased due to a child being at risk of serious abuse or neglect, as stipulated in section 4. The rules also detail the specific information that must be included in the receipts, such as the name of the child care service, the name of the person receiving the receipt, the child's name, and the period for which payment is made, among other details. The issuance of these receipts is a mandatory requirement for child care services engaging in fee reductions for CCB purposes.
Key Provisions
The Child Care Benefit (Receipts) Rules 2000, established under subsection 219E(2) of the A New Tax System (Family Assistance) (Administration) Act 1999 (the Administration Act), serve to regulate the issuing of receipts for child care benefit (CCB) payments. Section 4 of the rules stipulates that receipts should be provided to the individual who has paid reduced child care fees, unless the CCB rate has been increased due to a child being at risk of serious abuse or neglect, in which case receipts are not required. Section 5 outlines the specific information that must be included in these receipts, beyond the basic details of the amount paid and the reduction amount mandated by the Administration Act. This additional information includes the name of the child care service and the signature of the person issuing the receipt; the name of the individual to whom the receipt was issued (which may not be the person eligible for CCB if someone else paid the fees); the service's Australian Business Number (ABN), if applicable; the name of the child involved; the period for which payment is made; the receipt number and date of issue; and the number of days during the current financial year that the child has been absent from the service on a "permitted absence day."
These rules impose clear obligations on child care service providers. They must ensure that receipts are given to the correct individual, containing all the specified details as per Section 5. This includes providing the name of the child care service and the signature of the person issuing the receipt, the name of the individual to whom the receipt was issued, the service's ABN, the child's name, the payment period, the receipt number and date, and the number of permitted absence days. Failure to comply with these requirements could result in administrative or legal consequences, as the rules are designed to ensure transparency and accountability in the distribution of CCB payments.
While the rules themselves do not specify offences, penalties, or civil/criminal consequences for breaches, any failure to comply with these provisions could potentially lead to administrative actions under the broader legislative framework of the A New Tax System (Family Assistance) Act 1999. This might include investigations, fines, or other corrective measures to ensure adherence to the rules. Given that the rules are integral to the administration of CCB, non-compliance could also impact the eligibility and financial support of families relying on this benefit. The specific penalties for non-compliance would typically be determined under the broader provisions of the Administration Act and related legislation.