A New Tax System (Family Assistance) (Administration) Act 1999

This section applies if:

an amount (the CCS/ACCS amount) is paid to an individual by way of CCS or ACCS for a session of care provided by a child care service of a provider; and

all or part of the CCS/ACCS amount (the attributable component) is paid to the individual because the provider has:

made a false or misleading statement; or

failed to comply with the family assistance law; and

the individual incurs a debt under subsection 71B(1) or 71C(1) for the CCS/ACCS amount.

If the individual incurs the debt before the individual meets the CCS reconciliation conditions for the income year in which the session of care occurs, then:

the amount of the debt is taken to be reduced by the amount of the attributable component; and

the amount of the attributable component is instead a debt due to the Commonwealth by the provider.

If the individual incurs the debt after the individual meets the CCS reconciliation conditions for the income year in which the session of care occurs, then:

the amount of the debt is taken to be the amount of the withholding component of the CCS/ACCS amount (see subsection (4)); and

the amount of the fee reduction component of the CCS/ACCS amount (see subsection (5)) is a debt due to the Commonwealth by the provider.

The withholding component of the CCS/ACCS amount is the amount that would be the withholding amount under subsection 67EB(3), if it were assumed that:

subsections 67EB(3) and (4) applied for the purposes of this section; and

references to a payment in subsection 67EB(3) were instead references to the CCS/ACCS amount.

The fee reduction component of the CCS/ACCS amount is the CCS/ACCS amount less the withholding component of the CCS/ACCS amount.