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2004-2005
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
FAMILY AND COMMUNITY SERVICES LEGISLATION AMENDMENT (WELFARE TO WORK)
BILL 2005
EXPLANATORY MEMORANDUM
(Circulated by the authority of the
Minister for Family and Community Services,
Senator the Hon Kay Patterson)
FAMILY AND COMMUNITY SERVICES LEGISLATION AMENDMENT (WELFARE TO WORK)
BILL 2005
OUTLINE
This Bill makes amendments to the A New Tax System (Family Assistance) Act
1999 and the A New Tax System (Family Assistance) (Administration) Act 1999
to give effect to the Government's Welfare to Work package as it relates to
child care benefit.
The amendments made by Schedule 1 increase from 20 to 24 hours per week the
threshold weekly limit of hours of care provided by an approved child care
service to a child, for which child care benefit may be paid without the
need for the claimant and the claimant's partner (if any) to satisfy the
work/training/study test.
Amendments made by Schedule 2 modify the work/training/study test that a
claimant and the claimant's partner have to meet to be paid child care
benefit for up to 50 hours of care provided to the claimants' child by an
approved child care service in a week.
As a result of the amendments in Schedule 2, an individual undertaking paid
work, or a course of study or training for the purpose of improving the
individual's work skills and/or employment prospects, or any other activity
that the Minister determines, will satisfy the work/training/study test
only if the sum of the hours that the individual spends during the week
doing those activities is at least 15. In addition, an individual will be
able to average the number of hours that the individual spends doing those
activities over a two week period and will satisfy the work/training/study
test for each week in that period, if the sum of the number of hours for
that two week period is at least 30.
The amendments made by this Bill apply to child care benefit claimed as
child care benefit by fee reduction, or as a lump sum, for care provided by
an approved child care service.
Financial impact statement
Schedule 1 - Amendments relating to threshold for receiving child care
benefit
Commencement: 1 July 2006
Financial impact: Total resourcing
2005-06 nil
2006-07 $1.8 m
2007-08 $1.9 m
2008-09 $2.1 m
Schedule 2 - Amendments relating to work/training/study test
Commencement: 1 July 2006
Financial impact: Total resourcing
2005-06 nil
2006-07 -$2.1 m
2007-08 -$2.2 m
2008-09 -$2.4 m
FAMILY AND COMMUNITY SERVICES LEGISLATION AMENDMENT (WELFARE TO WORK)
BILL 2005
NOTES ON CLAUSES
Clause 1 provides that the Act may be cited as the Family and Community
Services Legislation Amendment (Welfare to Work) Act 2005.
Clause 2 provides that the Act commences on the day on which it receives
the Royal Assent.
Clause 3 refers the reader to the Schedules, which contain items amending
the provisions of the A New Tax System (Family Assistance) Act 1999 and the
A New Tax System (Family Assistance) (Administration) Act 1999.
This Explanatory Memorandum uses the following abbreviations:
. 'Family Assistance Act' means the A New Tax System (Family Assistance)
Act 1999;
. 'Family Assistance Administration Act' means the A New Tax System
(Family Assistance) (Administration) Act 1999; and
. 'CCB' means child care benefit.
Schedule 1 - Amendments relating to threshold for receiving child care
benefit
Summary
The amendments contained in this Schedule increase from 20 to 24 hours per
week the threshold weekly limit of hours of care provided by an approved
child care service to a child, for which CCB may be paid without the need
for the claimant and the claimant's partner (if any) to satisfy the
work/training/study test.
These amendments apply to CCB claimed as CCB by fee reduction, or as a lump
sum, for care provided by an approved child care service.
Background
Currently, if a claimant or the claimant's partner do not satisfy the
work/training/study test, CCB may be paid to the claimant for up to 20
hours of child care provided in a week to the claimant's child by an
approved child care service.
Explanation of changes
Amendments to the Family Assistance Act
Items 1 - 8 replace various references to '20' hours in the Family
Assistance Act with references to '24' hours to give effect to the increase
in the weekly hours threshold from 20 to 24 hours.
Item 1 amends paragraph 53(1)(a) by replacing the reference to 20 hours
with a reference to 24 hours. Subsection 53(1) sets out the various weekly
limits of hours applicable to a fee reduction claimant.
Item 2 amends paragraph 53(2)(a) by replacing the reference to 20 hours
with a reference to 24 hours. Subsection 53(2) sets out the various weekly
limits of hours applicable to a past period claimant.
Item 3 amends subsection 53(3) by replacing the reference to 20 hours with
one referring to 24 hours. Subsection 53(3) currently provides that a
limit of 20 hours applies as the default weekly limit of hours to a
claimant if:
a) in the case of a fee reduction claimant - a limit of 50 hours, a
limit of more than 50 hours or a 24 hour care limit does not apply
in respect of the week; and
b) in the case of a past period claimant - if a limit of 50 hours does
not apply in respect of the week.
Item 4 amends subsection 54(8) which currently provides that a limit of 50
hours applies to a fee reduction claimant who is an individual if the
Secretary considers that the child needs more than 20, up to a maximum of
50 hours care in a week because of exceptional circumstances. This item
replaces the reference to "20" hours with "24" hours.
Item 5 amends paragraph 54(9)(b) by replacing the reference to 20 hours
with one referring to 24 hours. Subsection 54(9) is similar to subsection
54(8) except that it applies where the fee reduction claimant is an
approved child care service.
Item 6 amends subsection 54(10) that currently applies in circumstances
where an approved child care service certifies that, for a specified
period, the child needs or needed more than 20, but not more than hours of
care in a week because the child is or has been at risk of serious abuse or
neglect. This item replaces the reference to 20 hours with one referring
to 24 hours.
Item 7 replaces the reference in paragraph 54(12)(b) to "20" hours with a
reference to "24" hours. Subsection 54(12) sets out circumstances where a
limit of 50 hours applies in the week to a fee reduction claimant if the
Secretary considers that the child is at risk.
Item 8 amends the reference to "20" hours in paragraph 57A(1)(a) by
replacing it with a reference to "24" hours. Subsection 57A(1) provides
that the Minister must determine rules relating to how to work out the
hours in sessions of care provided by an approved child care service to a
child in a week that are to count towards the various weekly limits of
hours.
Amendments of the Family Assistance Administration Act
Items 9 - 15 replace various references to "20" hours in the Family
Assistance Administration Act with references to "24" hours to give effect
to the increase in the weekly hours threshold from 20 to 24 hours.
Item 9 amends paragraph 50H(3)(b) by replacing the reference to "20" hours
with a reference to "24" hours. Section 50H requires the Secretary to
determine the weekly limit of hours where a fee reduction claimant has a
determination under section 50F that the claimant is conditionally eligible
for CCB by fee reduction.
Item 10 amends subsection 54C(1) by replacing the reference to "20" hours
with a reference to "24" hours. Subsection 54C(1) currently provides
that, if the claimant is eligible under section 47 of the Family Assistance
Act (an approved child care service is eligible for CCB by fee reduction
for care provided to a child at risk), the Secretary is taken to have made
a determination of a weekly limit of 20 hours applicable to the service in
respect of the child.
Item 11 amends paragraph 56C(3)(b) by replacing the reference to 20 hours
with a reference to 24 hours. Subsection 56C(3) currently applies in
circumstances where a weekly limit of more than 20 hours is in force in
respect of a fee reduction claimant who is an individual. This subsection
imposes an obligation on the claimant to notify the Secretary in a manner
approved by the Secretary if 'anything happens that causes a reduction in
the weekly limit of hours' or the 'claimant becomes aware that anything is
likely to happen that will have that effect'.
Item 12 amends paragraph 56D(1)(c) by replacing the reference to "20" hours
with a reference to "24" hours. Subsection 56D(1) is similar to
subsection 56C(3) except that it applies in circumstances where a
determination of a weekly limit of more than 20 hours is in force in
respect of a fee reduction claimant who is an approved child care service.
Item 13 amends subsection 59F(1) by replacing the reference to "20" hours
with a reference to "24" hours. Subsection 59F(1) applies in circumstances
where the Secretary has sent out a data verification form under section 57F
to an individual who is conditionally eligible for CCB by fee reduction,
whose limit of hours determined under section 50H is 50 hours and who did
not provide information requested in the data verification form.
Currently, subsection 59F(1) gives the Secretary discretion to vary the
determination of a weekly limit of hours to one with a limit of 20 hours.
Item 14 amends subsection 64D(2) by replacing the reference to "20" hours
with a reference to "24" hours. Consequential amendments are also made to
the heading to section 64D and the heading to subsection 64D(2).
Section 64D applies to a fee reduction claimant. Currently, the Secretary
has discretion to vary the weekly limit of hours determination so that a
limit of 20 hours applies in a week if a limit of 50 hours, more than 50
hours or a 24 hour care limit does not apply in the week.
Item 15 amends paragraph 219B(3)(a) by replacing the reference to
"20" hours with a reference to "24" hours. Section 219B imposes an
obligation on an approved child care service to reduce the fees of
individuals when the approved child care service is eligible for CCB (when
a child is at risk).
Item 16 is a transitional provision that addresses the situation where a
20 hour limit applies to a claimant who is an individual or an approved
child care service immediately before the new rules start to apply on and
from 3 July 2006.
The effect of new subitem 16(1) is to convert the existing 20 hours
determination, whether the claimant is an individual or a child care
service, into a 24 hours determination, on and from 3 July 2006.
If a determination of the limit of hours under subsection 50H(1) of the
Family Assistance Administration Act is in force, to which new subitem (1)
applies, new subitem 16(2) requires the Secretary to give notice to the
individual and to the approved child care service or services providing
care to the child.
New subitem 16(3) provides that the notice must state that, on and from the
start of the first week commencing after 1 July 2006 (3 July 2006), the
weekly limit of hours applicable to the claimant and the child is 24 hours.
New subitem 16(4) clarifies that the failure to send the notice referred to
in subitem 16(2) or include the information specified by subitem 16(3) or
both does not invalidate the operation of subitem 16(1).
New subitem 16(5) ensures that the necessary obligation is imposed upon the
approved child care service to act on the notice in the same way as if it
were a notice of a kind referred to in column 1 of table item 6 of the
table in subsection 219A(2) of the Family Assistance Administration Act
(the obligation being to apply the new limit of hours to the calculation of
CCB).
Item 17 provides that the amendments made by the Schedule apply to sessions
of care provided during the first week commencing after 1 July 2006 (these
sessions would start in the week commencing Monday 3 July 2006) or during
subsequent weeks.
Schedule 2 - Amendments relating to work/training/study test
Summary
Amendments made by this Schedule modify the work/training/study test that a
claimant and the claimant's partner have to meet to be paid CCB for up to
50 hours of care provided to the claimant's child by an approved child care
service in a week.
As a result of the amendments in Schedule 2, an individual undertaking paid
work, or a course of study or training for the purpose of improving the
individual's work skills and/or employment prospects, or any other activity
that the Minister determines, will satisfy the work/training/study test if
the sum of the hours that the individual spends during the week doing those
activities is at least 15. Alternatively, an individual will satisfy the
work/training/study test for each week in a fortnight if the number of
hours the individual has engaged in such activities is at least 30 over the
fortnight.
These amendments apply to CCB claimed as CCB by fee reduction, or as a lump
sum, for care provided by an approved child care service.
Background
Under the current rules, the work/training/study test is only relevant if a
claimant wishes to receive CCB for up to 50 hours of care provided in a
week to the claimant's child. For a 50 hour limit to apply to a claimant,
the claimant and the claimant's partner (if any) are required to satisfy
the work/training/study test 'at some time in the week' (subsection 54(2)
of the Family Assistance Act refers).
The amendments to the Family Assistance Act and the Family Assistance
Administration Act made by this Schedule amend the work/training/study test
as it applies to paid work, a training course with the purpose of improving
the individual's work skills and/or employment prospects and to a course of
education undertaken for the purpose of improving the individual's work
skills and/or employment prospects. The claimant and the claimant's
partner (if any) will satisfy the work/training/study test for a week only
if the sum of the number of hours that each individual spends during the
week doing those activities is at least 15. Alternatively, if an
individual is unable to meet the 15 hour test for a week, an individual
will be able to meet the work/training/study test for that week provided
that the sum of the hours the individual worked in the immediately
preceding week or in the immediately following week when added to the
number of hours for the week in question is at least 30. This allows the
individual to satisfy the work/training/study test by engaging in such
activities for an average of at least 15 hours per week for the two weeks
in question.
The amendments also give the Minister the power to determine by legislative
instrument other activities that can be counted towards meeting the
activity requirements.
Explanation of the changes
Amendments to the Family Assistance Act
Items 1 - 14 make amendments to the Family Assistance Act.
Items 1 and 2 amend the definition of 'paid work' in subsection 3(1) and
subsection 3B(1) to clarify that these definitions do not apply to new
section 17A.
The definitions of 'paid work' in subsection 3(1) and subsection 3B(1) were
recently added to the Family Assistance Act by the Family and Community
Services Legislation Amendment (Family Assistance and Related Measures) Act
2005 and are relevant to the method of calculating the rate of family tax
benefit Part B and not CCB.
Item 3 amends the note to subsection 3B(1) and is consequential to the
amendment made by item 2.
Item 4 amends section 14 by adding three new subsections (1A), (1B) and
(1C).
Section 14 contains rules applicable to the meaning of 'satisfies the
work/training/study test'. Subsection 14(1) provides that an individual
satisfies the work/training/study test if the individual has 'recognised
work or work related commitments' (defined in section 15), 'recognised
training commitments' (defined in section 16) or 'recognised study
commitments' (defined in section 17).
New subsection 14(1A) is applicable to circumstances where a 50 hours
weekly determination is sought in relation to care provided by an approved
child care service. Under new subsection 14(1A), an individual satisfies
the work training test only if:
a) the individual meets the activity requirements under new section 17A
for the week; or
b) the individual is not included in a class of individuals specified
in a determination under new subsection 14(1C) and:
i) paragraph 15(1)(b), 15(1)(c), 17(1)(a), 17(1)(b), 17(1)(c) or
17(1)(d) applies to the person; or
ii) the individual is included in a class specified in a
determination under subsection 15(2); or
iii) the individual is covered by the Minister's determination
under subsection 14(1B) or 14(2).
The requirement in new paragraph 17A(1)(a) only applies if:
. the activity engaged in by the individual is specified in new
subsection 17A(1); or
. the activity is one determined by the Minister, by legislative
instrument, under new subsection 17A(2) (item 9) as an activity that
counts towards meeting the activity requirements under new section
17A; or
. the individual is included in a class of individuals specified in a
determination under new subsection 17A(1C).
In the case of new paragraph 14(1A)(a), the amendments made to
subsection 54(2) and paragraph 54(3)(b) (items 11 and 13) clarify that the
work/training/study test is satisfied if the activity requirements under
new section 17A are met 'for the week'.
If new paragraph 14(1A)(b) applies to the individual, the amendments made
to subsection 54(2) and paragraph 54(3)(b) (items 11 and 13) clarify that
the work/training/study test is satisfied if the requirements are met 'at
some time in the week'. This retains the current work/training/study test
for these individuals.
New paragraph 14(1A)(b) refers to new subsection 14(1C) which provides the
Minister with power, by legislative instrument, to determine that one or
more of the classes of individuals specified in a determination under
subsection 15(2) are classes of individuals who must meet the activity
requirements under section 17A. Subsection 15(2) gives the Minister power
to determine that individuals included in a specified class are individuals
who are taken to have recognised work or work related commitments for the
purposes of section 15.
New subparagraph 14(1A)(b)(iii) refers to new subsection 14(1B) and
subsection 14(2). New subsection 14(1B) gives the Minister power, by
legislative instrument to determine circumstances in which individuals are
not required to meet the activity requirements under section 17A.
Subsection 14(2) provides that the Minister may determine that individuals
included in a specified class are exempt from the requirements of
paragraphs 14(1)(a), (b) and (c). If an individual is covered by a future
determination under new subsection 14(1B) the individual will not be
required to meet the activity requirements in section 17A. Individuals who
are covered under subsection 14(2) determination are exempted from having
to satisfy the work/training/study test and this exemption will continue.
Item 5 is consequential to item 6 and amends the current section 16 so that
it becomes subsection 16(1).
Item 6 adds a new subsection 16(2) which clarifies that an individual who
undertakes an education course will still be regarded as having 'recognised
training commitments' even if the individual is not required to participate
in any activity for the course, for example, due to vacation breaks in the
course. This subsection is intended only to apply to breaks that occur
during the currency of a course and would not apply once the course had
formally concluded.
Item 7 is consequential to item 8 and amends current section 17 so that it
becomes subsection 17(1).
Item 8 adds a new subsection 17(2) which clarifies that an individual who
undertakes an education course will still be regarded as having 'recognised
study commitments' even if the individual is not required to participate in
any activity for the course, for example, due to vacation breaks in the
course. This subsection is intended only to apply to breaks that occur
during the currency of a course and would not apply once the course had
formally concluded.
Item 9 adds a new section 17A that contains the activity requirements that
will be applicable to individuals who engage in the activities described
and who are required to satisfy the activity requirements in the section
because of a determination under new subsection 14(1C) or because the
activity is one that counts towards meeting the activity requirements under
new section 17A by virtue of a determination under new subsection 17A(2).
New subsection 17A(1) is intended to be read in conjunction with new
subsection 14(1A) (item 4) and applies if paragraph 14(1A)(a) applies to
the individual but not if paragraph 14(1A)(b) applies.
New subsection 17A(1) provides that an individual who has claimed CCB for
care provided during a week meets the activity requirements for a week if:
(a) during the week, the individual has engaged in one or more of
the following activities:
vii) paid work (this can include work as an employee or other
work such as self employment);
viii) a training course undertaken for the purposes of improving
his or her work skills and/or employment prospects;
ix) a course of education undertaken for the purposes of
improving his or her work skills and/or employment
prospects;
x) any other activity that the Minister determines under
subsection 17A(2); and
(b) the sum of the hours that the individual spends during the week
doing those activities:
xi) is at least 15; or
xii) if subparagraph (i) does not apply - is, when added to the
sum of the number of hours that the individual spends during
the immediately proceeding week doing those activities, at
least 30; or
xiii) if subparagraphs (i) and (ii) do not apply - is, when added
to the sum of the number of hours that the individual spends
during the immediately following week doing those
activities, at least 30.
New subparagraphs 17A(1)(b)(ii) and (iii) apply in circumstances where an
individual does not have the 15 hours as required by subparagraph (i) for a
particular week. In these circumstances, an individual will still be able
to satisfy the work/training/study test for the week in question provided
that the sum of the hours the individual worked in the immediately
preceding week or in the immediately following week when added to the
number of hours for the week in question is at least 30.
For example Alexandra engages in paid work as follows:
|Week |1 |2 |3 |4 |5 |6 |
|Hours of paid |15 |20 |10 |15 |10 |20 |
|work | | | | | | |
Alexandra satisfies the work/training/study test for week 1 on the basis of
subparagraph 17A(1)(b)(i) because she has worked at least 15 hours for that
week.
Alexandra satisfies the work/training/study test for week 3 on the basis of
subparagraph 17A(1)(b)(ii) because she has worked 20 hours during the
immediately preceding week (week 2) which can be added to the 10 hours
worked in week 3 to reach the 30 hours required. Alexandra also satisfies
the work/training/study test for week 2 in these circumstances.
Alexandra satisfies the work/training/study test for week 5 on the basis of
subparagraph 17A(1)(b)(iii) because she has worked 20 hours during the
immediately following week (week 6) which can be added to the 10 hours
worked in week 3 to reach the 30 hours required. Alexandra also satisfies
the work/training/study test for week 6 in these circumstances.
New subsection 17A(1) is intended to allow an individual to meet the
activity requirements in two ways. An individual can meet the activity
test by doing one of the activities specified in new subparagraphs (i) -
(iv) for at least 15 hours, for example by engaging in paid work for 15
hours. If the individual does not perform any of the activities specified
in subparagraphs (i) - (iv) for at least 15 hours, the individual can
combine any of the activities specified to reach the 15 hour threshold, for
example, an individual may engage in 10 hours paid work during the week and
in 5 hours of training for the week. Similarly an individual can meet the
activity test by engaging in such activities (or a combination thereof) for
an average of at least 15 hours for two consecutive weeks (at least 30
hours for the two weeks concerned).
New subsection 17A(2) provides that the Minister may, by legislative
instrument, determine activities that count towards meeting the activity
requirements under this section.
Examples of the activities that may be covered by a legislative instrument
under new subsection 17A(2) include: actively setting up a business that
has not yet started to operate, or personally providing constant care and
supervision for a disabled person in circumstances where the individual is
unable to undertake a work, training or study commitment.
New subsection 17A(3) provides that the determination may provide that
specified kinds of leave are activities that count towards meeting the
activity requirements under this section.
Examples of the kinds of leave that could be covered by the determination
include: annual leave, long service leave and any other form of paid leave
granted under the individual's terms and conditions of paid work.
New subsection 17A(4) applies, if in determining whether an individual has
met the activity requirements for a week, hours that the individual spends
during another week, doing the activities mentioned in paragraph (1)(a) are
counted. This occurs when new subparagraph 17A(1)(b)(ii) or (iii) are
applied. In these circumstances, none of the hours spent in that other
week (whether all hours or some hours of the other week were counted) are
to be counted in determining whether the individual has met the activity
requirements for a third week.
Example 1: Lisa works 7 hours in week 1, 23 hours in week 2 and 7 hours in
week 3.
Lisa is not meeting the work/training/study test for week 1 under
subparagraph 7A(1)(b)(i) because she works less than 15 hours in that week.
Lisa is meeting the test under subparagraph 17A(1)(b)(iii) because the
total number of hours in weeks 1 and 2 is 30. The 23 hours from week 2
were used for the purposes of meeting the test in week 1. Lisa is not
meeting the work/training/study test for week 3 under 17A(1)(b)(i) (she
works less than 15 hours in that week) and the 23 hours from week 2 cannot
be used for the purposes of meeting the test in week 3 because hours from
week 2 have already been used for the purposes of meeting the test in week
1.
Example 2: Harry works 10 hours in week 1, 23 hours in week 2 and 12 hours
in week 3.
Harry is not meeting the work/training/study test for week 1 under
subparagraph 17A(1)(b)(i) (he works less than 15 hours in that week) but he
is meeting the test under subparagraph 17A(1)(b)(iii) because the total
number of hours in weeks 1 and 2 is "at least 30". The 23 hours from week
2 were used for the purposes of meeting the test in week 1. Harry is not
meeting the work/training/study test for week 3 under 17A(1)(b)(i) (he
works less than 15 hours in that week) and none of the 23 hours from week 2
can be used for the purposes of meeting the test in week 3 because under
subsection 17A(4) none of the hours in week 2 are to be counted in
determining whether Harry has met the activity requirements for a third
week.
New subsection 17A(5) applies in circumstances where an individual is in
paid work and is taking leave of a kind specified in the determination
under new subsection 17A(2). The individual is taken to have engaged in
paid work for the number of hours that the individual would have spent
doing the paid work if the individual did not take the leave.
For example, Nicole is a sole parent with one child in approved child care.
Nicole satisfies the work/training/study test because she does paid work
for 38 hours per week. When Nicole takes annual leave from her employment
for a week, she is taken to have worked 38 hours during the week for the
purposes of the work/training/study test under new subsection 17A(5).
Item 10 amends paragraph 52(4)(a) by inserting a reference to new
subsection 59(2) of the Family Assistance Administration Act before
'section 59F'. This amendment is consequential to the amendment of
section 59 of the Family Assistance Administration Act (item 18).
Paragraph 52(4)(a) lists the provisions of the Family Assistance
Administration Act under which variation of the determination relating to
the weekly limit of hours may be made. Item 10 inserts a reference to a
new variation power created by item 18.
Item 11 amends subsection 54(2) that applies in circumstances where the
claimant is an individual.
Currently, subsection 54(2) requires that the individual satisfy the
work/training/study test 'at some time in the week'.
This amendment clarifies that in relation to the activity requirements
under new section 17A, the work/training/study test is satisfied if the
activities are performed 'for the week'. The requirement to meet the test
'at some time in the week' will continue to be relevant to individuals to
whom the activity requirements in new section 17A do not apply.
The claimant and the claimant's partner (if any) must both satisfy the
work/training/study test.
Item 12 adds a new note at the end of subsection 54(2) that provides that
new subsection 14(1A) specifies extra requirements for satisfying the
work/training/study test for the purposes of this section.
Item 13 amends paragraph 54(3)(b) that applies in circumstances where the
claimant is an approved child care service.
Currently, paragraph 54(3)(b) requires that the individual in whose care
the child last was satisfy the work/training/study test 'at some time in
the week'.
This amendment clarifies that, in relation to the activity requirements
under new section 17A, the work/training/study test is satisfied if the
activities are performed 'for the week'. The requirement to meet the test
'at some time in the week' will continue to be relevant to individuals to
whom the activity requirements in new section 17A do not apply.
In these circumstances, the individual and the individual's partner (if
any) must both satisfy the work/training/study test.
Item 14 adds a new note at the end of subsection 54(3) that provides that
new subsection 14(1A) specifies extra requirements for satisfying the
work/training/study test for the purposes of this section.
Amendments of the Family Assistance Administration Act
Items 15 - 34 amend various provisions of the Family Assistance
Administration Act.
Items 15 and 16 amend section 57F.
Section 57F gives the Secretary power to give a claimant who is
conditionally eligible for CCB by fee reduction a written notice requiring
the claimant to give to the Secretary, within the time specified in the
notice, the information specified in the data verification form
accompanying the notice.
The power contained in section 57F will be used to send notices to fee
reduction claimants who have a 50 hours weekly limit determination in order
to assess their continued eligibility for that limit of hours under the
modified work/training/study test that will apply from 3 July 2006. Item
16 adds a new subsection 57F(2) that clarifies that the powers contained in
section 57 (which item 15 amends to become subsection 57F(1)) can be used
for this purpose.
Once a response is received to the notice issued in relation to the matters
set out in new subsection 57F(2), the Secretary will be able to determine
whether or not the claimant will satisfy the work/training/study test on or
after the week commencing 3 July 2006.
If the Secretary is satisfied that the claimant will satisfy the
work/training/study test, no further action will be necessary as the
claimant will continue on with the 50 hours determination.
If the Secretary is satisfied that the claimant would not satisfy the
work/training/study test on and from 3 July 2006, then the Secretary will
be able to use the variation powers contained in the Family Assistance
Administration Act to vary the 50 hours determination to one with a 24 hour
limit. The determination would have effect from 3 July 2006.
Items 17 and 18 amend section 59.
Section 59 applies in circumstances where a claimant has been sent a notice
under section 57F and the claimant has not returned the form in the time
specified in the request. In these circumstances, under section 59 as it
currently provides, the Secretary has discretion to vary the claimant's
determination of conditional eligibility with the effect that the claimant
is not conditionally eligible from 1 July in the income year following the
one in which the request was made.
Item 18 adds new subsections 59(2) and 59(3) to section 59.
New subsection 59(2) provides that, where the request is a request for
information of the kind referred to in subsection 57F(2) (see item 16) and
the request form is not returned in the time specified in the request, then
the Secretary may vary the claimant's determination as to hours with the
effect that the weekly limit is 24 hours, from 3 July 2006. The variation
of the claimant's determination of conditional eligibility so that
eligibility is lost from 1 July of the next income year following that in
which the notice was sent is not considered appropriate in these
circumstances.
New subsection 59(3) provides that the Secretary must make a determination
to undo the effect of a variation under new subsection 59(2) if, before the
end of the income year following the one in which the variation took
effect:
i) the claimant returns the data verification form specified in the
request under section 57F and provides the information referred to
in new paragraph 59(2)(c); or
ii) the Secretary finds out the information whether from the claimant
or someone else.
Item 17 is an amendment consequential to the amendment made by item 18 and
changes the existing section 59 into subsection 59(1) to reflect the
addition of new subsections 59(2) and (3).
Item 19 amends paragraph 62D(a). This amendment is a consequential
amendment to the amendment described in item 18.
Section 62D applies where:
c) the Secretary makes a variation of a determination under
section 58, 59C, 59D, 59F, 59G, 60C, 60E, 62A, 62B, 62C or 62CA
(the first variation); and
d) the period specified under the particular section passes, during
which the Secretary is required to vary again the determination to
undo its effect; and
e) after the period, the Secretary is provided with the information,
or finds out the information, the lack of which caused the
Secretary to make the first variation.
In these circumstances, the Secretary must again vary the determination
using the information provided or found out, with effect from the Monday
after the new variation.
Item 19 adds reference to the new variation power in new subsection 59(2),
to paragraph 62D(a), to ensure that section 62D also applies where the
Secretary was required to undo the effect of a variation under new
subsection 59(2) because of new subsection 59(3) (item 18).
Items 20, 21 and 22 amend various parts of subsection 64A(5). These
amendments are consequential to the amendment described in item 18.
Section 64A gives the Secretary power to vary a determination of a weekly
limit of hours under section 50H or section 54C, on application, so that a
limit of 50 hours in the week applies provided that the criteria contained
in subsection 64A(2) are satisfied.
Subsection 64A(5) provides that, if:
a) when a variation under subsection 64A(2) takes place, a variation
is in force under section 59F or 62C; and
b) the variation under section 59F or 62C has effect for any period
when the variation under this section would have effect;
the variation under section 59F or 62C prevails over the variation under
section 64A unless the variation under section 64A take place because of
circumstances listed in subsection 54(12) of the Family Assistance Act
(child needs up to 50 hours of care because he or she is at risk of serious
neglect or abuse) applies in a week.
Items 20, 21 and 22 are consequential on the amendment made to section 59
by item 18. Items 20, 21 and 22 amend the heading to subsection 64A(5),
paragraph 64A(5)(a), 64A(5)(b) and subsection 64A(5) to include references
to new subsection 59(2). This clarifies when and in what circumstances a
variation under new subsection 59(2) should prevail over a variation made
under section 64A.
Items 23, 24 and 25 amend various parts of subsection 64B(6). These
amendments are consequential to the amendment described in item 18.
Section 64B enables a determination of a weekly limit of hours in force
under section 50H or section 54C to be varied, on application, so that a
limit of more than 50 hours in a week applies.
Subsection 64B(6) is similar to subsection 64A(5) and clarifies when and in
what circumstances a variation under section 59F or 62C should prevail over
a variation made under section 64B.
The amendments made by items 23, 24 and 25 amend the heading to subsection
64B(6) and amend paragraph 64B(6)(a), 64B(6)(b) and subsection 64B(6) by
adding references to new subsection 59(2) for a similar reason to the
amendments described for items 20, 21 and 22.
Items 26, 27 and 28 amend various parts of subsection 64C(5). These
amendments are consequential to the amendment described in item 18.
Section 64C enables a determination of a weekly limit of hours in force
under section 50H or section 54C to be varied, on application, so that a 24
hour care limit in a week applies.
Subsection 64C(5) is similar to subsection 64A(5) and subsection 64B(6) and
clarifies when and in what circumstances a variation under section 59F or
62C should prevail over a variation made under section 64C.
The amendments made by items 26, 27 and 28 add references to new subsection
59(2) in the headings to subsection 64C(5), paragraphs 64C(5)(a) and
64C(5)(b) and subsection 64C(5) for a similar reason to the amendments to
subsections 64A(5) and 64B(6) described above.
Items 29, 30 and 31 amend various parts of subsection 65D(5). These
amendments are consequential to the amendment described in item 18.
Section 65D enables a determination of a weekly limit of hours in force
under section 50H to be varied if an event occurs to reflect changes in
weekly limit of hours.
Subsection 65D(4) is similar to subsections 64A(5), 64B(6) and 64C(5) and
clarifies when and in what circumstances a variation under section 59F or
62C should prevail over a variation made under section 64C.
The amendments made by items 29, 30 and 31 add references to new subsection
59(2) in the heading to subsection 65D(4) and to paragraphs 65D(4)(a),
65D(4)(b) and subsection 65D(5) for a similar reason to the amendments to
subsections 64A(5), 64B(6) and 64C(5) described above.
Items 32 and 33 amend subsection 157(2), which provides the Secretary with
the power to obtain information to verify claims.
Item 32 adds a further paragraph at the end of paragraph 157(2)(j) that
clarifies that, in relation to any employment of the person, information
can be sought about the number of hours each week for which the person is
employed.
Item 33 adds further paragraphs at the end of subsection 157(2) to clarify
that information relevant to the work/training/study test can be gathered
in relation to 'any other work (other than as an employee) that the person
does' and 'in relation to any training of the person'.
Item 34 amends subsection 219A(2) (table item 6, column 1) (section 219A
deals with child care services' obligations following receipt of notices of
determinations relating to child care benefit of an individual) to clarify
that the existing obligation of an approved child care service to act on a
notice of variation of the determination of the weekly limit of hours
includes acting on a variation made under new subsection 59(2). This
amendment is consequential to the amendment made by item 18.
Item 35 provides that the application of the amendments made by Schedule 2
apply to sessions of care provided during the first week commencing after
1 July 2006 (the week commences Monday 3 July 2006) and during subsequent
weeks.