On 27 February 2017 the Minister for Education and Training announced changes to the Family Assistance Law affecting Child Care Benefit approved Family Day Care services.
All approved Family Day Care services should be aware that there are new requirements.
The Australian Government has made changes to strengthen the integrity of Child Care Payments Compliance Framework to ensure the delivery of high quality, flexible and affordable child care to Australian families.
What are the changes?
The changes apply from 13 March 2017.
No one is eligible for child care fee assistance for Family Day Care provided to an individual who has turned 18.
No-one is eligible for child care fee assistance for Family Day Care provided to a child aged 14 years or older, or who attends secondary school, unless a specified circumstances applies.
Child care provided by an approved Family Day Care service is not a ‘session of care’ for Grandparent Child Care Benefit (GCCB) or Special Child Care Benefit (SCCB) purposes where reported fees involve amounts for which no individual has incurred a genuine liability, or the reported fees exceed a maximum amount of $12.67 per hour (indexed to $12.84 on 1 July 2017).
Where fees genuinely exceed the maximum amount, the care is only a ‘session of care’ if the Secretary of the Department of Education and Training (the department) considers that individuals have in fact incurred a liability for the fee and the fee is not above what the service would have charged if the GCCB or SCCB rate did not apply.
Changes to the 2015 child swapping integrity measure to ensure:
the term ‘engaged in activities for the purposes of the program’ reflects the intent that specified circumstances provide for formal programmed educational activities only, which are outside the control of the Family Day Care educator
clarification of the requirement for evidence of an ‘education’ or ‘work’ exemptions to establish whether the session of care overlaps or conflicts with the study or work and
approved Family Day Care services must have evidence of a specified circumstance within the timeframes that they must report the session of care in the Child Care Management System.
The changes commence from 13 March 2017 and are made through the following Determinations:
Child Care Benefit (Session of Care) Determination 2017 available at https://www.legislation.gov.au/Details/F2017L00162
Child Care Benefit (Children in respect of whom no-one is eligible) Amendment Determination 2017 available at https://www.legislation.gov.au/Details/F2017L00166
Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Amendment Determination 2017 available at https://www.legislation.gov.au/Details/F2017L00164
A New Tax System (Family Assistance) (Administration) (Child Care Benefit — Record Keeping) Amendment Rules 2017 available at https://www.legislation.gov.au/Details/F2017L00163
The following resources provide further information regarding the new changes.
Family Day Care Legislation Changes from 13 March 2017 – Older Children Fact Sheet
Family Day Care Legislation Changes from 13 March 2017 – Maximum Hourly Amount for Grandparent Child Care Benefit and Special Child Care Benefit Fact Sheet
Family Day Care Legislation Changes from 13 March 2017 – Information for families Fact Sheet
The following updated resources provide further information on the clarification of the child swapping exemptions.
If you have any questions about these new requirements, please email: email@example.com.