Schedule 2—Calculation of rate of child care rebate
Note: See section 106.
Module A—Overall rate calculation process
Method of calculating rate
A1 The rate of child care rebate is a rate per *payment period worked out in accordance with Method statement A1.
Method statement A1
Step 1. Identify the qualifying sessions of care for the person and for each week of the *payment period (see Module B).
Step 2. Work out the child care rebate for the person for each week of the payment period (see point A2).
Step 3. The rate of child care rebate is worked out by adding together the child care rebate for each week of the payment period and then rounding the total in accordance with point A3.
The weekly child care rebate formula
A2(1) The formula for working out the child care rebate under Step 2 in Method statement A1 is:
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(2) In this formula:
CCR% has the meaning given by Module C.
weekly child care expenditure has the meaning given by Module D.
minimum fee means $19.50. This is the minimum amount that the person must pay for child care for a week before rebate will be paid.
Note: The amount specified in the definition of minimum fee is to be indexed in accordance with Module E.
(3) If the person’s weekly child care expenditure is below the minimum fee, the child care rebate for the week is nil.
Rounding amounts
A3 Amounts worked out under Step 3 in Method statement A1 are to be rounded upwards to the nearest 5 cents.
Module B—Qualifying session of care
Qualifying session of care—basic meaning
B1 Subject to points B2 and B3, a *session of care for a child is a qualifying session of care in relation to a person and a *payment period if:
(a) it is a session of care in the payment period in relation to which the conditions specified in subsection 78(2) are satisfied; and
(b) no provision of Part 3 of Chapter 3 applies to make child care rebate not payable to the person in respect of the time of the session.
Session cannot be counted twice as a qualifying session of care
B2 Once a *session of care for a child has been counted (for the purposes of this Schedule) as a qualifying session of care in relation to a person, it cannot be counted again as a qualifying session of care for the purposes of determining the child care rebate payable to the person, or another person, pursuant to another claim.
Dealing with session of care in respect of which 2 people have made claims
B3(1) If 2 people claim child care rebate in respect of the same *session of care for a child, the Secretary is to decide in writing which of them is to receive any child care rebate payable in respect of the session. The session is not a qualifying session of care in relation to the other person.
(2) In making the decision, the Secretary must have regard to whether one of the people is the primary carer for the child.
(3) The Secretary is to give notice of the decision to each of the people.
Module C—CCR%
The CCR%
C1 The CCR% for a person is:
(a) if the CCR% for the person is set at 20% under point C2 or C3—20%; or
(b) if the person’s annual income exceeds the income cut out point (see points C4 and C5)—20%; or
(c) in any other case—30%.
Non-compliance with tax file number request—CCR% is 20%
C2(1) The CCR% for the person is 20% if:
(a) the person is requested under section 97 or 123 to:
(i) give the Secretary a written statement of the person’s *tax file number; or
(ii) apply for a tax file number and give the Secretary a written statement of the person’s tax file number once it has been issued; and
(b) at the end of the period of 28 days after the request is made, the person has not complied with the request; and
(c) the Secretary has not exempted the person from having to comply with the request.
Note 1: See section 6 for how to comply with a request.
Note 2: During the 28 days, the CCR% for the person may still be 30%.
(2) The CCR% for the person is 20% if:
(a) the person is a *member of a couple; and
(b) the person is requested under section 98 or 124 to give the Secretary a written statement of the *tax file number of the person’s partner; and
(c) at the end of the period of 28 days after the request is made, the person has not complied with the request; and
(d) the Secretary has not exempted the person from having to comply with the request.
Note 1: See section 7 for how to comply with a request.
Note 2: During the 28 days, the CCR% for the person may still be 30%.
(3) If the person’s claim for child care rebate is a *prospective claim, once the CCR% for the person is 20%, it remains fixed at that rate for the purposes of that claim until the person complies with the request.
(4) If the person’s claim for child care rebate is a *retrospective claim, once the CCR% for the person is 20%, it remains fixed at that rate for the purposes of that claim.
Non-compliance with requirement for information about income
C3(1) The CCR% for the person is 20% if:
(a) the person is requested under the regulations to provide *information relevant to the calculation of annual income for the purposes of this Module; and
(b) the person has not provided the information within the period required by the regulations.
Note: During the period for complying with the request, the CCR% for the person may still be 30%.
(2) If the person’s claim for child care rebate is a *prospective claim, once the CCR% for the person if 20%, it remains fixed at that rate for the purposes of that claim until the person complies with the request.
(3) If the person’s claim for child care rebate is a *retrospective claim, once the CCR% for the person is 20%, it remains fixed at that rate for the purposes of that claim.
The person’s annual income
C4(1) For the purposes of this Module, the person’s annual income is to be worked out in accordance with the regulations.
(2) Without limiting subpoint (1), the regulations may:
(a) provide that a person’s annual income is to include the income of another person (for example, the person’s partner); and
(b) identify amounts to be included in a person’s income; and
(c) identify amounts not to be included in a person’s income; and
(d) provide for the use of estimates in determining a person’s income; and
(e) provide for a person’s income to be recalculated in certain circumstances.
(3) Regulations made for the purposes of this point may adopt a provision or provisions of the Social Security Act 1991, with or without modification.
The income cut out point
C5(1) The income cut out point, in relation to the person and the week, is:
(a) if the person has only one *dependent child in the week—$70,000; or
(b) if the person has more than one dependent child in the week—the amount worked out in accordance with the formula in subpoint (2).
Note: The amount specified in this point is to be indexed in accordance with Module E.
(2) The formula is:
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Note: The amounts specified in this point are to be indexed in accordance with Module E.
(3) In this point:
dependent child, in relation to the person, means a *dependent child of the person or the person’s partner.
Module D—Weekly child care expenditure
Method of calculating weekly child care expenditure
D1 The weekly child care expenditure for a person for a week is worked out in accordance with Method statement D1.
Method statement D1
Step 1. Work out the total of all liabilities that the person, or the person’s partner, has incurred for qualifying sessions of care during the week.
Step 2. Deduct the amounts referred to in point D2. The result is the uncapped weekly child care expenditure.
Step 3. Apply the expenditure ceiling specified in point D3 to the uncapped weekly child care expenditure, then apply the following rules:
(a) if the uncapped weekly child care expenditure is less than the expenditure ceiling, the weekly child care expenditure is equal to the uncapped weekly child care expenditure;
(b) if the uncapped weekly child care expenditure is equal to or greater than the expenditure ceiling, the weekly child care expenditure is equal to the expenditure ceiling.
Amounts to be deducted
D2(1) The amounts to be deducted under Step 2 in Method statement D1 are:
(a) any child care assistance that is paid to or on behalf of the person or the person’s partner for the week; and
(b) any other amount specified in a determination in force under subpoint (2).
(2) The Minister may determine in writing amounts that are to be deducted under Step 2.
(3) A determination under subpoint (2) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
The expenditure ceiling
D3 The expenditure ceiling is as follows:
(a) if rebate is paid in respect of one *dependent child of the person, or the person’s partner, for the week—$115;
(b) if rebate is paid in respect of two or more dependent children of the person, or the person’s partner, for the week—$230.
Note: The amounts specified in this point are to be indexed in accordance with Module E.
Module E—Indexation
Amounts to be indexed
E1 The amounts specified in the table below are to be indexed.
Amounts to be indexed
Item Amount
1 The amount specified in subpoint A2(2) (definition of minimum fee)
2 Each amount specified in point C5
3 Each amount specified in point D3
Substituting a higher amount before first indexation
E2(1) The Minister may, in writing, before the day on which an amount is first indexed, determine that a higher amount is to be substituted for that amount. The determination has effect accordingly.
(2) A determination under subpoint (1) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
Regulations on indexation
E3(1) The regulations may:
(a) prescribe when an amount is to be indexed; and
(b) prescribe the way in which an amount is to be indexed; and
(c) make different provision in respect of different amounts.
(2) Regulations made for the purposes of this point may adopt a provision or provisions of the Social Security Act 1991, with or without modification.
Consequence of indexing amounts
E4 If an amount (the indexable amount) is indexed in accordance with the regulations, this Schedule has effect as if the new amount (as indexed) were substituted for the indexable amount on the day when the indexation takes effect.
Notes to the Child Care Payments Act 1997
Note 1
The Child Care Payments Act 1997 as shown in this consolidation comprises Act No. 195, 1997 amended as indicated in the Tables below.
Table of Acts
Act
Number and year
Date of Assent
Date of commencement
Application, saving or transitional provisions
Child Care Payments Act 1997
195, 1997
8 Dec 1997
(see s. 2)
Child Care Legislation Amendment Act 1998
13, 1998
16 Apr 1998
Schedule 1 (items 16, 17): Royal Assent (a)
—
Social Security Legislation Amendment (Youth Allowance Consequential and Related Measures) Act 1998
Schedule 7 (item 15): 1 July 1999 (see Gazette 1999, No. S283) (f)
—
(a) The Child Care Payments Act 1997 was amended by Schedule 1 (items 16 and 17) only of the Child Care Legislation Amendment Act 1998, subsection 2(1) of which provides as follows:
(1) Sections 1, 2, 3 and 4 and items 16 and 17 of Schedule 1 commence on the day on which this Act receives the Royal Assent.
(b) The Child Care Payments Act 1997 was amended by Schedule 13 (items 5-8) only of the Social Security Legislation Amendment (Youth Allowance Consequential and Related Measures) Act 1998, subsection 2(1) of which provides as follows:
(1) Subject to subsections (2) to (10), this Act commences on 1 July 1998.
(c) The Child Care Payments Act 1997 was amended by Schedule 1 (items 27-31) only of the Financial Sector Reform (Consequential Amendments) Act 1998, subsection 2(2) of which provides as follows:
(2) Subject to subsections (3) to (14), Schedules 1, 2 and 3 commence on the commencement of the Australian Prudential Regulation Authority Act 1998.
(d) The Child Care Payments Act 1997 was amended by Schedule 5 (item 1) only of the Payment Processing Legislation Amendment (Social Security and Veterans’ Entitlements) Act 1998, subsection 2(1) of which provides as follows:
(1) Subject to subsections (2) and (3), this Act commences on 1 July 1999.
(e) The Health Insurance Act 1973 was amended by Schedule 2 (items 65, 66) only of the Assistance for Carers Legislation Amendment Act 1999, subsection 2(2) of which provides as follows:
(2) The following provisions:
(a) Parts 1 and 4 of Schedule 1;
(b) Schedule 2 (other than items 1 and 3);
(c) Schedule 3 (other than item 1);
commence immediately after the commencement of Schedule 1 to the Payment Processing Legislation Amendment (Social Security and Veterans’ Entitlements) Act 1998.