EXPLANATORY STATEMENT
Child Care Benefit (Work/Training/Study Test Exemption) Amendment Determination 2009 (No. 1)
Summary
The Child Care Benefit (Work/Training/Study Test Exemption) Amendment Determination 2009 (No. 1) (the Amendment Determination) is made by the Minister for Education and Minister for Employment and Workplace Relations under subsection 14 (2) of the A New Tax System (Family Assistance) Act 1999 (the Family Assistance Act).
The purpose of the Amendment Determination is to amend the Child Care Benefit (Work/Training/Study Test Exemption) Determination 2000 (the Principal Determination) to incorporate amendments to the family assistance law made by the Same-Sex Relationships (Equal Treatment in Commonwealth Laws – General Law Reform) Act 2008 (the Same-Sex Act) to eliminate discrimination against same-sex couples and the children of same-sex relationships in Commonwealth legislation.
Background
Subdivision G of Division 4 of Part 3 of the Family Assistance Act includes provisions relevant to working out the number of hours of child care provided in a week by an approved child care service to a child, for which an individual is eligible for child care benefit. A limit of 24 hours applies in a week to claimants for child care benefit by fee reductions, and to claimants for child care benefit for a past period, if a weekly limit of up to 50 hours does not apply (subsection 53 (3) of the Family Assistance Act). A weekly limit of up to 50 hours applies to such a claimant if both the claimant and claimant’s partner satisfy, at some time in the week, the work/training/study test (subsection 54 (2) of the Family Assistance Act). A person satisfies the work/training/study test if the person meets the requirements specified in subsection 14 (1) of the Family Assistance Act of having recognised work, work-related study or training commitment.
Subsection 14 (2) of the Family Assistance Act authorises the Minister to determine a class of person to be exempt from the requirements of the work/training/study test. Subsection 14 (3) provides that an individual included in the exempt class is taken to satisfy the test while the determination is in force.
Currently, the Principal Determination exempts grandparents with grandchildren in their care from the work/training/study test. For the purposes of determining whether a person is a grandparent or great grandparent of another person, the following relationships are treated in the Principal Determination as if they were the biological child-parent relationships:
- the relationship between an adopted child and his or her adoptive parent; and
- the relationship between a step child and his or her step parent.
This Amending Determination provides for an additional category of relationship for the purposes of the above provision, namely, the relationship between a relationship child and his or her relationship parent.
Explanation of provisions
Amendment Determination
Section 1 provides that the name of the Amendment Determination is the Child Care Benefit (Work/Training/Study Test Exemption) Amendment Determination 2009 (No.1).
Section 2 states that the Amendment Determination commences on the day after it is registered.
Section 3 provides that the Principal Determination is amended as set out in Schedule 1 to the Amendment Determination.
Schedule 1 to the Amendment Determination
Item 1 inserts the words ‘the relationship between a relationship child and his or her relationship parent’ as a new paragraph (c) in subsection 5(3) of the Principal Determination.
The Same-Sex Act extends the definition of parent to include the additional term, ‘relationship parent’ and extends the definition of child to include ‘relationship child’. A person is a relationship parent to a child who is not a biological or adopted child of the person and who is the product of a relationship the person has had as a couple with another person, whether of the same sex or a different sex. The child must be the biological child of at least one of the persons in the relationship or have been born to a woman in the relationship.
Formal matters
Consultation
The Amendment Determination ensures existing guidelines are consistent with amendments to Commonwealth primary legislation made by the Same-Sex Act, and are consequential to those amendments. No public consultation was considered necessary.
Regulatory Impact Statement
The Amendment Determination does not require a Regulatory Impact Statement (RIS) nor a Business Cost Calculator Figure. The Amendment Determination is not regulatory in nature, will not impact on business activity and will have no compliance costs or competition impact.
Authority
Subsection 14 (2) of the A New Tax System (Family Assistance) Act 1999. No preconditions need to be satisfied for the making of this instrument.
Overview
The Child Care Benefit (Work/Training/Study Test Exemption) Amendment Determination 2009 (No. 1) was enacted by the Minister for Education and the Minister for Employment and Workplace Relations under the authority of the A New Tax System (Family Assistance) Act 1999. The primary objective of this Amendment Determination was to address the issue of discrimination against same-sex couples and their children within Commonwealth legislation, aligning the child care benefit provisions with the broader reforms introduced by the Same-Sex Relationships (Equal Treatment in Commonwealth Laws – General Law Reform) Act 2008. By amending the Child Care Benefit (Work/Training/Study Test Exemption) Determination 2000, this determination ensures that the concept of 'relationship parent' and 'relationship child' is recognised, thereby extending the eligibility for child care benefits to same-sex couples in a manner consistent with the anti-discrimination framework established by the primary legislation.
Scope and Application
The Child Care Benefit (Work/Training/Study Test Exemption) Amendment Determination 2009 (No. 1) amends the Child Care Benefit (Work/Training/Study Test Exemption) Determination 2000 to align with the Same-Sex Relationships (Equal Treatment in Commonwealth Laws – General Law Reform) Act 2008, thereby eliminating discrimination against same-sex couples and their children in Commonwealth legislation. This amendment ensures that the exemptions from the work/training/study test for child care benefit are inclusive of relationship parents and relationship children, terms which are now defined under the Family Assistance Act to include non-biological or non-adoptive parents and children of same-sex couples. The Amendment Determination applies to individuals who are relationship parents to relationship children, providing them with an exemption from the work/training/study test, thus aligning their eligibility criteria for child care benefits with that of other families. This amendment has a national reach, applicable across Australia, as it is made under the authority of the Commonwealth and amends a determination that is part of the broader family assistance framework provided by the Family Assistance Act. There are no exclusions, exemptions, or thresholds specified beyond those already outlined in the Principal Determination, and no subordinate instruments extend or restrict the application of this Amendment Determination.
Key Provisions
The Child Care Benefit (Work/Training/Study Test Exemption) Amendment Determination 2009 (No. 1) (section 1) amends the Child Care Benefit (Work/Training/Study Test Exemption) Determination 2000 (section 3), primarily by incorporating changes introduced by the Same-Sex Relationships (Equal Treatment in Commonwealth Laws – General Law Reform) Act 2008. This amendment ensures that same-sex couples and their children are not discriminated against in relation to Commonwealth legislation. Specifically, the Amendment Determination extends the definitions of 'parent' and 'child' to include terms such as 'relationship parent' and'relationship child', which refer to non-biological or non-adoptive parental relationships. This extension is designed to recognise the diverse family structures that exist in contemporary society.
The Amendment Determination imposes specific obligations on entities and individuals governed by the Child Care Benefit provisions. For instance, it requires that the relationship between a relationship child and their relationship parent be recognised for the purposes of determining eligibility for child care benefit exemptions from the work/training/study test (subsection 5(3)). This means that if a relationship parent and their relationship child meet the criteria set out in the Family Assistance Act, they will be eligible for certain exemptions that might otherwise be unavailable. The determination also mandates that these new definitions be applied consistently with the broader framework of family assistance laws, ensuring that all eligible families receive the benefits to which they are entitled.
Failure to comply with the provisions of the Amendment Determination could result in various consequences. While the Amendment Determination itself does not explicitly state penalties for non-compliance, breaches of the underlying Family Assistance Act could result in civil or criminal penalties. For example, under section 126 of the Family Assistance Act, an individual who knowingly makes a false statement or representation in relation to an application for a family assistance payment could face a civil penalty of up to 10,000 penalty units, or imprisonment for up to two years, or both. These penalties serve to enforce the integrity of the family assistance system and ensure that benefits are awarded only to those who meet the eligibility criteria.