Document ID: chunk:federal_register_of_legislation:C2011C00636:clause:1_219b
Version: federal_register_of_legislation:C2011C00636
Segment Type: clause
Provision Reference: sch 1 cl 219B
Character Range: 47725–50290

219B  Obligation to pass on fee reductions where individual conditionally eligible

 (1) This section applies if:
 (a) a determination of conditional eligibility for child care benefit by fee reduction under section 50F is in force in respect of an individual (the claimant) and a child for a session of care provided by an approved child care service to the child in a week; and
 (b) the Secretary calculates under section 50Z, or recalculates under section 50ZA, the amount of fee reduction applicable in respect of the session of care; and
 (c) the Secretary has notified the service of the amount in accordance with subsection 50Z(3), or the recalculated amount in accordance with subsection 50ZA(2).

 (2) Subject to subsection (3), the service must, within 14 days after being notified of the amount as calculated or recalculated, pass the amount on to the claimant, except to the extent that the service is required to remit the amount to the Secretary under section 219QB.

Penalty: 60 penalty units.

Note: This amount must be passed on, even if the payment of amounts to the service in respect of fee reduction has been suspended under paragraph 200(1)(h).

 (3) If:
 (a) the Secretary, on recalculating under section 50ZA the amount in which the Secretary considers fee reduction is applicable in respect of the session of care (the last recalculation), reduces the amount; and
 (b) the amount is reduced for a reason other than the substitution or withdrawal by the service of a report given under section 219N;
the service must pass on to the claimant the amount as calculated, or recalculated, immediately before the last recalculation, rather than the amount last recalculated.

Note: The fact that the higher rather than the lower amount has been passed on will be taken into account when the determination of entitlement is made under section 51B.

 (4) If:
 (a) the service reduces the amount by which it charges the claimant in respect of the session of care in anticipation of the Secretary's calculation of the amount applicable in respect of fee reduction for that session (the anticipated fee reduction); and
 (b) the service was an approved child care service at the time the session of care was provided;
the service is taken to have passed on to the claimant an amount equal to the anticipated fee reduction.

 (5) The amount is taken to have been passed on to the claimant on the day on which the Secretary notified the service of the amount in accordance with subsection 50Z(3).

 (6) Subsection (2) is an offence of strict liability.