PAID PARENTAL LEAVE (CONSEQUENTIAL AMENDMENTS) BILL 2010

i Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

Contents

1 Short

title

...........................................................................................

2 Commencement

.................................................................................

3 Schedule(s)

........................................................................................

Schedule 1--Amendments

A New Tax System (Family Assistance) Act 1999

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

Child Support (Registration and Collection) Act 1988

Data-matching Program (Assistance and Tax) Act 1990

Fringe Benefits Tax Assessment Act 1986

Income Tax Assessment Act 1936

Income Tax Assessment Act 1997

Medicare Levy Act 1986

Social Security Act 1991

Taxation Administration Act 1953

Veterans' Entitlements Act 1986

Schedule 2--Transitional provisions

Part 1--Transitional provisions relating to employer

determinations under the Paid Parental Leave Act

2010

Part 2--Other transitional provisions

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 1

A Bill for an Act to make amendments

consequential on the enactment of the Paid Parental

Leave Act 2010, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Paid Parental Leave (Consequential

Amendments) Act 2010.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

2 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 to 3

and anything in

this Act not

elsewhere covered

by this table

The day this Act receives the Royal Assent.

2. Schedule 1,

items 1 and 2

At the same time as the Paid Parental Leave

Act 2010 commences.

3. Schedule 1,

item 3

The latest of:

(a) the start of 1 January 2011; and

(b) the time the Paid Parental Leave Act

2010 commences; and

Schedule 2 to the Child Support and

Family Assistance Legislation

Amendment (Budget and Other

Measures) Act 2010.

However, the provision(s) do not commence

at all unless both of the events mentioned in

paragraphs (b) and (c) occur.

4. Schedule 1,

items 4 to 12

The later of:

(a) the start of 1 January 2011; and

(b) the time the Paid Parental Leave Act

2010 commences.

However, the provision(s) do not commence

at all if the event mentioned in paragraph (b)

does not occur.

5. Schedule 1,

item 13

The latest of:

(a) the start of 1 January 2011; and

(b) the time the Paid Parental Leave Act

2010 commences; and

Schedule 2 to the Child Support and

Family Assistance Legislation

Amendment (Budget and Other

Measures) Act 2010.

However, the provision(s) do not commence

at all unless both of the events mentioned in

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 3

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

paragraphs (b) and (c) occur.

6. Schedule 1,

items 14 to 18

The later of:

(a) the start of 1 January 2011; and

(b) the time the Paid Parental Leave Act

2010 commences.

However, the provision(s) do not commence

at all if the event mentioned in paragraph (b)

does not occur.

7. Schedule 1,

items 19 to 28

At the same time as the Paid Parental Leave

Act 2010 commences.

8. Schedule 1,

item 29

The later of:

(a) the start of 1 January 2011; and

(b) the time the Paid Parental Leave Act

2010 commences.

However, the provision(s) do not commence

at all if the event mentioned in paragraph (b)

does not occur.

9. Schedule 1,

items 30 to 37

At the same time as the Paid Parental Leave

Act 2010 commences.

10. Schedule 1,

item 38

At the same time as the Paid Parental Leave

Act 2010 commences.

However, if item 32 of Schedule 2 to the Tax

Laws Amendment (Confidentiality of

Taxpayer Information) Act 2010 commences

on or before the time the Paid Parental

Leave Act 2010 commences, the provision(s)

do not commence at all.

11. Schedule 1,

items 39 to 82

At the same time as the Paid Parental Leave

Act 2010 commences.

12. Schedule 1,

item 83

The later of:

(a) the time the Paid Parental Leave Act

2010 commences; and

(b) immediately after the commencement of

item 1 of Schedule 1 to the Tax Laws

Amendment (Confidentiality of Taxpayer

Information) Act 2010.

4 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

However, the provision(s) do not commence

at all unless both of the events mentioned in

paragraphs (a) and (b) occur.

13. Schedule 1,

items 84 to 90

At the same time as the Paid Parental Leave

Act 2010 commences.

14. Schedule 2

At the same time as the Paid Parental Leave

Act 2010 commences.

Note:

This table relates only to the provisions of this Act as originally

passed by both Houses of the Parliament and assented to. It will not be

expanded to deal with provisions inserted in this Act after assent.

(2) Column 3 of the table contains additional information that is not

part of this Act. Information in this column may be added to or

edited in any published version of this Act.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

concerned, and any other item in a Schedule to this Act has effect

according to its terms.

Amendments Schedule 1

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 5

Schedule 1--Amendments

A New Tax System (Family Assistance) Act 1999

1 Subsection 3(1)

Insert:

eligible for parental leave pay has the same meaning as in the Paid

Parental Leave Act 2010.

2 Subsection 3(1)

Insert:

PPL period has the same meaning as in the Paid Parental Leave

Act 2010.

3 Subsection 3(1)

Insert:

primary carer, in relation to a child who is an FTB child of an

individual and is also an FTB child of another individual who is

not the individual's partner, has the meaning given by subsection

36(8).

4 After paragraph 36(2)(aa)

Insert:

(ab) the individual, or the individual's partner, is, or was, the

primary carer of the child at any time within the period of 26

weeks starting on the day of the child's birth; and

5 After paragraph 36(2)(b)

Insert:

(ba) in a case where the individual or the individual's partner is

eligible for parental leave pay in respect of the child--the

PPL period applying to the individual or the individual's

partner has not started; and

(bb) in a case where a former partner of the individual, or of the

individual's partner, is eligible for parental leave pay in

Schedule 1 Amendments

6 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

respect of the child--the PPL period applying to the former

partner:

(i) has not started; or

(ii) did not start while the former partner was the partner of

the individual, or of the individual's partner; and

6 Paragraph 36(3)(b)

Repeal the paragraph, substitute:

(b) within the period of 26 weeks starting on the day of the

child's birth:

(i) the child is entrusted to the care of the individual or the

individual's partner; and

(ii) the individual, or the individual's partner, becomes the

primary carer of the child; and

7 After paragraph 36(3)(ca)

Insert:

(cb) the individual, or the individual's partner, continues, or is

likely to continue, to be the primary carer of the child for not

less than 26 weeks; and

8 After paragraph 36(3)(d)

Insert:

(da) in a case where the individual or the individual's partner is

eligible for parental leave pay in respect of the child--the

PPL period applying to the individual or the individual's

partner has not started; and

(db) in a case where a former partner of the individual, or of the

individual's partner, is eligible for parental leave pay in

respect of the child--the PPL period applying to the former

partner:

(i) has not started; or

(ii) did not start while the former partner was the partner of

the individual, or of the individual's partner; and

9 Paragraph 36(4)(aa)

Repeal the paragraph, substitute:

(aa) had the child been born alive:

Amendments Schedule 1

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 7

(i) the child would have been an FTB child of the

individual at birth; and

(ii) the individual, or the individual's partner, would have

been the primary carer of the child at birth; and

10 After paragraph 36(4)(b)

Insert:

(ba) in a case where the individual or the individual's partner is

eligible for parental leave pay in respect of the child--the

PPL period applying to the individual or the individual's

partner has not started; and

(bb) in a case where a former partner of the individual, or of the

individual's partner, is eligible for parental leave pay in

respect of the child--the PPL period applying to the former

partner:

(i) has not started; or

(ii) did not start while the former partner was the partner of

the individual, or of the individual's partner; and

11 After paragraph 36(5)(bb)

Insert:

(bc) the individual, or the individual's partner, is, or was, the

primary carer of the child at any time within the period of 26

weeks starting on the day the child is entrusted to the care of

the individual; and

12 After paragraph 36(5)(c)

Insert:

(ca) in a case where the individual or the individual's partner is

eligible for parental leave pay in respect of the child--the

PPL period applying to the individual or the individual's

partner has not started; and

(cb) in a case where a former partner of the individual, or of the

individual's partner, is eligible for parental leave pay in

respect of the child--the PPL period applying to the former

partner:

(i) has not started; or

(ii) did not start while the former partner was the partner of

the individual, or of the individual's partner; and

Schedule 1 Amendments

8 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

13 At the end of section 36

Add:

Primary carers in cases of shared care

(8) If a child is an FTB child of an individual and is also an FTB child

of another individual who is not the individual's partner, the

primary carer of the child is:

(a) if the individual who gave birth to the child has a percentage

of care for the child of at least 48%--that individual; or

(b) if paragraph (a) does not apply, but one individual has a

higher percentage of care for the child than anyone else--that

individual; or

an equal percentage of care for the child that is higher than

anyone else's percentage of care for the child:

(i) if one of those individuals gave birth to the child--that

individual; or

(ii) whichever of those individuals the Secretary decides is

the primary carer of the child.

14 After section 36

Insert:

36A Effect of favourable review of payability determinations etc. for

parental leave pay

(1)

If:

(a) an individual would, but for this section, be eligible for baby

bonus in respect of a child; and

(b)

either:

(i) a payability determination (within the meaning of the

Paid Parental Leave Act 2010) was made to the effect

that parental leave pay is not payable for the child; or

(ii) a decision made under that Act, on review of another

decision under that Act, has the effect that parental

leave pay is not payable for the child; and

Act on review of:

(i) the payability determination; or

Amendments Schedule 1

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 9

(ii) the decision on review referred to in

subparagraph (b)(ii);

has the effect that parental leave pay is payable for the child;

the individual is not, and is taken never to have been, eligible for

baby bonus in respect of the child.

(2) Despite subsection (1), if:

(a) the favourable review decision is made before the PPL period

relating to the parental leave pay starts; and

(b) before that PPL period starts, a decision made under that Act,

on review of the favourable review decision, has the effect

that parental leave pay is not payable for the child;

this section does not affect, and is taken never to have affected, the

individual's eligibility for baby bonus in respect of the child.

(3) Despite subsection (1), if:

(a) the favourable review decision is made before the PPL period

relating to the parental leave pay starts; and

(b) before that PPL period starts, the payability determination (as

in force following the favourable review decision) is revoked

under section 25 of that Act;

this section does not affect the individual's eligibility, after the

determination is revoked, for baby bonus in respect of the child.

Note:

If this subsection applies, subsection 39(1A) of the Family Assistance

Administration Act allows for an additional claim for payment of baby

bonus in respect of the child.

15 Subsections 37(2) and (3)

Omit "subsection 36(2), (3) or (4)", substitute "subsection 36(2) or (3)".

16 Paragraph 39(3)(b)

Repeal the paragraph, substitute:

(b) had the child been born alive:

(i) the child would have been an FTB child of the

individual at birth; and

(ii) the individual, or the individual's partner, would have

been the primary carer of the child at birth; and

17 At the end of Division 2 of Part 4

Add:

Schedule 1 Amendments

10 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

66A Amount of baby bonus to take into account parental leave pay

of others

(1)

If:

(a) an individual has been, or is being, paid parental leave pay

for a child; and

(b) at any time within the period of 26 weeks starting on the day

of the child's birth, the individual has been, or is, the primary

carer of the child; and

subsection 36(2) or (3), in respect of the same child (whether

or not that eligibility is affected by a determination under

subsection 37(3));

the Secretary may determine a percentage by which it is reasonable

to reduce the other individual's amount of baby bonus in respect of

the child in order to take into account that the individual referred to

in paragraph (a) is eligible for parental leave pay in respect of the

child.

(2) Despite section 66, the amount of baby bonus for the other

individual in respect of the child is reduced in accordance with the

determination.

18 At the end of Subdivision AA of Division 1 of Part 4 of

Schedule 1

Add:

28C Paid parental leave

Despite Subdivisions A and B, the Part B rate that an individual is

eligible for in respect of a day is nil if the day occurs during a PPL

period applying to the individual, or the individual's partner.

Note:

The heading to clause 28B of Schedule 1 is replaced by the heading "Adjusted taxable

income exceeding $150,000".

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

1999

19 Subsection 3(1)

Insert:

Amendments Schedule 1

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 11

early claim day, in relation to:

(a) a claim for payment of family tax benefit by instalment; or

(b) a claim for payment of baby bonus in normal circumstances;

normal circumstances;

means the day occurring 97 days before the day that, on the day the

claim is made, is the expected day on which the child to whom the

claim relates will become an FTB child of the claimant. It does not

matter whether the child becomes such an FTB child on the

expected day.

20 Subsection 3(1)

Insert:

parental leave pay has the same meaning as in the Paid Parental

Leave Act 2010.

21 At the end of section 7

Add:

(3) A claim is not effective if it is made before the early claim day.

22 After section 15A

Insert:

15B Deferral of determination of early claims

If:

(a) an individual makes a claim for payment of family tax

benefit by instalment in respect of a child before the child is

an FTB child of the claimant; and

(b) the Secretary is satisfied that, at the time the determination

would otherwise be made, the claimant would be likely to be

eligible for family tax benefit in respect of the child if the

child were to become an FTB child of the claimant;

the Secretary must not determine the claim for family tax benefit

until the earlier of the following:

claimant, or is stillborn;

Schedule 1 Amendments

12 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

(d) 28 days after the day that, on the day the claim is made, is the

expected day on which the child to whom the claim relates

will become an FTB child of the claimant.

23 After subsection 38(2)

Insert:

(2A) A claim is not effective if it is made before the early claim day.

24 After subsection 39(1)

Insert:

(1A) However, subsection (1) does not apply to a claim for payment of

baby bonus in respect of a child if:

(a) section 36A applied in relation to an individual's eligibility

for baby bonus in respect of the child, but ceased to apply

because of subsection 36A(3); and

(b) the claim is the individual's first claim for payment of baby

bonus in respect of the child after that section so ceased to

apply.

25 Subsection 39(2)

Omit "subsection (3)", substitute "subsections (3) and (3A)".

26 After subsection 39(3)

Insert:

(3A)

If:

(a) the claimant, or the claimant's partner, made a claim in

accordance with Part 2-4 of the Paid Parental Leave Act

2010 for parental leave pay for the child to whom the claim

for payment of baby bonus relates; and

(b) the Secretary notifies the claimant, or the claimant's partner,

under section 24 of that Act that parental leave pay is not

payable for the child; and

(i) after the end of the period of 52 weeks mentioned in

subsection (2) of this section; or

(ii) during the last 13 weeks of that period of 52 weeks;

Amendments Schedule 1

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 13

subsection (2) of this section does not apply if the claim for

payment of baby bonus is made within the period of 13 weeks after

the day on which the notice is given.

27 Subsections 41(3) and (4)

Repeal the subsections, substitute:

Deferral of "normal circumstances" baby bonus determination

pending birth etc. of child

(3)

If:

(a) the claim is one for payment of baby bonus in normal

circumstances, based on eligibility for baby bonus under

subsection 36(2), (3) or (5) of the Family Assistance Act; and

(b) at the time the determination would otherwise be made, the

child to whom the claim relates is not an FTB child of the

claimant; and

would otherwise be made, the claimant would be likely to be

eligible for baby bonus in respect of the child if the child

were to become an FTB child of the claimant;

the Secretary must not determine the claim for baby bonus until the

earlier of the following:

(d) the time when the child becomes an FTB child of the

claimant, or is stillborn;

(e) 28 days after the day that, on the day the claim is made, is the

expected day on which the child to whom the claim relates

will become an FTB child of the claimant.

Deferral of "normal circumstances" baby bonus determination

pending resolution of parental leave pay

(4)

If:

(a) the claim is one for payment of baby bonus in normal

circumstances; and

(b) the claimant, or the claimant's partner, has made a claim in

accordance with Part 2-4 of the Paid Parental Leave Act

2010 for parental leave pay for the child to whom the claim

for baby bonus relates;

the Secretary must not determine the claim for baby bonus until

one of the following occurs:

Schedule 1 Amendments

14 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

pay for the child is payable:

(i) the PPL period applying to the individual who made the

claim for parental leave pay starts; or

(ii) the Secretary revokes the determination under

section 25 of that Act;

(d) the Secretary determines under that Act that parental leave

pay for the child is not payable;

(e) the claim for parental leave pay is withdrawn under

section 61 of that Act.

Deferral of "normal circumstances" maternity immunisation

allowance determination pending birth etc. of child

(4A)

If:

(a) the claim is one for payment of maternity immunisation

allowance in normal circumstances, based on eligibility for

the allowance under subsection 39(2), (2A) or (5) of the

Family Assistance Act, or subsection 39(6) of that Act

(where subsection 39(7) of that Act applies), in respect of a

child; and

(b) at the time the determination would otherwise be made, the

child is not an FTB child of the claimant; and

would otherwise be made, if the child were to become an

FTB child of the claimant, the claimant:

(i) would be likely to be eligible for family tax benefit in

respect of the child; or

(ii) would be likely to be so eligible except that the

claimant's rate of family tax benefit, worked out under

Division 1 of Part 4 of the Family Assistance Act,

would be nil;

the Secretary must not determine the claim for maternity

immunisation allowance until the earlier of the following:

(d) the time when the child becomes an FTB child of the

claimant, or is stillborn;

(e) 28 days after the day that, on the day the claim is made, is the

expected day on which the child to whom the claim relates

will become an FTB child of the claimant.

Amendments Schedule 1

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 15

28 Subsection 41(7)

Before "subparagraphs", insert "paragraphs (4A)(b), (c) and (d) and".

Note:

The following heading to subsection 41(7) is inserted "Effect of section 22A of the

Family Assistance Act".

29 Paragraph 47B(1)(c)

Repeal the paragraph, substitute:

(i) the child ceases to be an FTB child of the individual; or

(ii) neither the individual nor the individual's partner is the

primary carer of the child; and

30 Paragraph 84(1)(b)

After "the Farm Household Support Act 1992", insert ", the Paid

Parental Leave Act 2010".

31 Subparagraphs 84A(1)(b)(ii), 92(1)(a)(i) and 92A(1)(a)(i)

After "the Farm Household Support Act 1992", insert ", the Paid

Parental Leave Act 2010".

Child Support (Registration and Collection) Act 1988

32 Subsection 4(1)

Insert:

instalment of parental leave pay means an instalment of parental

leave pay under the Paid Parental Leave Act 2010.

33 After section 72AC

Insert:

72AD Deductions from parental leave pay

(1) The Registrar may give a written notice to the Secretary (within the

meaning of the Paid Parental Leave Act 2010) if:

(a) the Secretary is required under the Paid Parental Leave Act

2010 to pay an instalment of parental leave pay to a person;

and

(b) either of the following applies:

Schedule 1 Amendments

16 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

(i) the person is a payer of an enforceable maintenance

liability;

(ii) the person owes a child support debt in relation to an

enforceable maintenance liability and an amount of the

debt remains unpaid after the day on which the debt

became due and payable under section 66 of this Act.

(2) The notice must:

(a) specify the person's name; and

(b) set out sufficient particulars to enable the Secretary to

identify the person; and

subparagraphs (1)(b)(i) and (ii) apply--instruct the Secretary

to make, subject to subsections (3) and (4), fortnightly

deductions of an amount specified in the notice from the

person's instalments of parental leave pay from a specified

day; and

(d) if subparagraph (1)(b)(ii) applies and subparagraph (1)(b)(i)

does not apply--instruct the Secretary to make, subject to

subsections (3) and (4), fortnightly deductions of an amount

specified in the notice from the person's instalments of

parental leave pay from a specified day until the debt is paid.

(3) The amount to be deducted from the person's instalment of

parental leave pay for a period must not exceed the amount (if any)

by which the person's instalment for the period exceeds the amount

ascertained by applying the protected earnings rate to that period.

(4) An amount is not to be deducted from the person's instalment of

parental leave pay for a period if the person's instalment for the

period is less than the amount ascertained by applying the

protected earnings rate to that period.

(5) A notice under subsection (1) is not invalid merely because:

(a) it specifies under paragraph (2)(c) or (d) an amount that

exceeds the amount that subsection (3) allows to be deducted;

(b) subsection (4) does not allow an amount to be deducted.

Amendments Schedule 1

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 17

Data-matching Program (Assistance and Tax) Act 1990

34 Subsection 3(1) (at the end of paragraphs (d), (daa) and

(dd) of the definition of personal assistance)

Add "or".

35 Subsection 3(1) (after paragraph (df) of the definition of

personal assistance)

Insert:

or (e) an instalment of parental leave pay under the Paid Parental

Leave Act 2010;

Fringe Benefits Tax Assessment Act 1986

36 Subsection 136(1) (after paragraph (a) of the definition of

salary or wages)

Insert:

(aa) a payment from which an amount must be withheld (even if

the amount is not withheld) under paragraph 12-110(1)(ca)

(about parental leave pay) in Schedule 1 to the Taxation

Administration Act 1953, other than a payment under Part 3-3

of the Paid Parental Leave Act 2010 (Payment of instalments

by Secretary); and

Income Tax Assessment Act 1936

37 Subsection 6(1)

Insert:

member of a family tax benefit (Part B) family without shared

care: a taxpayer is a member of a family tax benefit (Part B)

family without shared care if:

(a) the taxpayer, or the taxpayer's spouse while being the

taxpayer's partner (within the meaning of the A New Tax

System (Family Assistance) Act 1999), is eligible for family

tax benefit at the Part B rate (within the meaning of that Act);

and

(b) clause 31 of Schedule 1 to that Act does not apply in respect

of the Part B rate.

Schedule 1 Amendments

18 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

38 After paragraph 16(4)(fc)

Insert:

(fca) the Families Secretary, or the Chief Executive Officer of

Centrelink, for the purpose of the administration of the Paid

Parental Leave Act 2010; or

39 Sub-subparagraph 23AB(7)(a)(ii)(AA)

Omit "subsections 159L(3A), (5A) and (5B)", substitute

"section 159LA".

40 Sub-subparagraph 23AB(7)(a)(ii)(BA)

Omit "subsections 159J(1AA), (3AA) and (3AB)", substitute

"section 159JA".

41 Sub-subparagraph 23AB(7)(a)(ii)(D)

Omit "subsections 159J(1AA), (3AA) and (3AB)", substitute

"section 159JA".

42 Subsection 79A(4) (paragraph (aa) of the definition of

relevant rebate amount)

Omit "subsections 159L(3A), (5A) and (5B)", substitute

"section 159LA".

43 Subsection 79A(4) (paragraph (ba) of the definition of

relevant rebate amount)

Omit "subsections 159J(1AA), (3AA) and (3AB)", substitute

"section 159JA".

44 Subsection 79A(4) (paragraph (d) of the definition of

relevant rebate amount)

Omit "subsections 159J(1AA), (3AA) and (3AB)", substitute

"section 159JA".

45 Subsection 79B(6) (paragraph (aa) of the definition of

concessional rebate amount)

Omit "subsections 159L(3A), (5A) and (5B)", substitute

"section 159LA".

Amendments Schedule 1

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 19

46 Subsection 79B(6) (paragraph (ba) of the definition of

concessional rebate amount)

Omit "subsections 159J(1AA), (3AA) and (3AB)", substitute

"section 159JA".

47 Subsection 79B(6) (paragraph (d) of the definition of

concessional rebate amount)

Omit "subsections 159J(1AA), (3AA) and (3AB)", substitute

"section 159JA".

48 Subsections 159J(1AA), (3AA) and (3AB)

Repeal the subsections.

49 After section 159J

Insert:

159JA Rebates for dependants--reduction because of certain other

benefits

Families without shared care percentages

(1) A taxpayer is not entitled, in his or her assessment in respect of a

year of income, to a rebate under section 159J in respect of a

dependant for a part of the year, if:

(a) the dependant is included in class 1 or 2 in the table in

subsection 159J(2); and

(b) during that part of the year:

(i) the taxpayer is a member of a family tax benefit (Part B)

family without shared care; or

(ii) parental leave pay is payable under the Paid Parental

Leave Act 2010 to the taxpayer, or to the taxpayer's

spouse while being the taxpayer's partner (within the

meaning of that Act).

Note:

That part of the year may be the whole year.

(2) Subject to subsection (3), the rebate allowable to the taxpayer

under section 159J in respect of the dependant for the part (if any)

of the year not covered by paragraph (1)(b) of this section is such

part of the relevant rebate amount specified in column 3 of the

Schedule 1 Amendments

20 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

table in subsection 159J(2) as, in the Commissioner's opinion, is

reasonable in the circumstances.

Families with shared care percentages

(3) The rebate allowable to a taxpayer under section 159J in respect of

a dependant for a part (the shared care period) of a year of income

is to be worked out using the formula in subsection (4) of this

section, if:

(a) disregarding this subsection, the taxpayer would be entitled,

in his or her assessment in respect of the year, to a rebate

under section 159J in respect of the dependant; and

(b) the dependant is included in class 1 or 2 in the table in

subsection 159J(2); and

(i) the taxpayer, or the taxpayer's spouse while being the

taxpayer's partner (within the meaning of the A New

Tax System (Family Assistance) Act 1999), was eligible

for family tax benefit at the Part B rate within the

meaning of that Act; and

(ii) clause 31 of Schedule 1 to that Act applied in respect of

that Part B rate because the taxpayer, or the taxpayer's

spouse, had a shared care percentage for an FTB child

(within the meaning of that Act).

Note: The

shared care period may be the whole year.

(4) The formula is:

Shared care rate

Applicable rebate amount

Non-shared care rate

�

where:

applicable rebate amount is the amount of rebate that would have

been allowable under section 159J in respect of the shared care

period but for subsection (3) of this section.

non-shared care rate is the rate that would be the standard rate in

respect of the taxpayer or the taxpayer's spouse under clause 30 of

Schedule 1 to the A New Tax System (Family Assistance) Act 1999

if:

(a) clause 31 of that Schedule did not apply; and

Amendments Schedule 1

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 21

(b) the FTB child in respect of whom the standard rate was

determined under clause 31 was the only FTB child of the

taxpayer or the taxpayer's spouse, as the case requires.

shared care rate is the standard rate in respect of the taxpayer or

the taxpayer's spouse worked out under clause 31 of Schedule 1 to

the A New Tax System (Family Assistance) Act 1999.

50 Subsections 159L(3A), (5A) and (5B)

Repeal the subsections.

Note:

The heading to section 159L is replaced by the heading "Rebates for housekeepers".

51 After section 159L

Insert:

159LA Rebates for housekeepers--reduction because of certain

other benefits

Families without shared care percentages

(1) A taxpayer is not entitled, in his or her assessment in respect of a

year of income, to a rebate under section 159L in respect of a

person (the housekeeper) for a part of the year, if, during that part

of the year:

(a) the taxpayer does not contribute to the maintenance of a

dependant specified in paragraph 159L(1)(c); and

(b) either or both of the following subparagraphs apply:

(i) the taxpayer is a member of a family tax benefit (Part B)

family without shared care;

(ii) parental leave pay is payable under the Paid Parental

Leave Act 2010 to the taxpayer, or to the taxpayer's

spouse while being the taxpayer's partner (within the

meaning of that Act).

Note:

That part of the year may be the whole year.

(2) Subject to subsection (3), the rebate allowable to the taxpayer

under section 159L in respect of the housekeeper for the part (if

any) of the year not covered by subsection (1) of this section is

such part of the rebate specified in subsection 159L(2) in relation

to the taxpayer as, in the Commissioner's opinion, is reasonable in

the circumstances.

Schedule 1 Amendments

22 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

Families with shared care percentages

(3) The rebate allowable to a taxpayer under section 159L in respect of

a person (the housekeeper) for a part (the shared care period) of a

year of income is to be worked out using the formula in

subsection (4) of this section, if:

(a) disregarding this subsection, the taxpayer would be entitled,

in his or her assessment in respect of the year, to a rebate

under section 159L in respect of the housekeeper; and

(b) during the shared care period:

(i) the taxpayer, or the taxpayer's spouse while being the

taxpayer's partner as defined in the A New Tax System

(Family Assistance) Act 1999, was eligible for family

tax benefit at the Part B rate within the meaning of that

Act; and

(ii) clause 31 of Schedule 1 to that Act applied in respect of

that Part B rate because the taxpayer, or the taxpayer's

spouse, had a shared care percentage for an FTB child

(within the meaning of that Act); and

(iii) the taxpayer did not contribute to the maintenance of a

dependant specified in paragraph 159L(1)(c) of this Act.

Note: The

shared care period may be the whole year.

(4) The formula is:

Shared care rate

Applicable rebate amount

Non-shared care rate

�

where:

applicable rebate amount is the amount of rebate that would have

been allowable under section 159L in respect of the shared care

period but for subsection (3) of this section.

non-shared care rate is the rate that would be the standard rate in

respect of the taxpayer or the taxpayer's spouse under clause 30 of

Schedule 1 to the A New Tax System (Family Assistance) Act 1999

if:

(a) clause 31 of that Schedule did not apply; and

(b) the FTB child in respect of whom the standard rate was

determined under clause 31 was the only FTB child of the

taxpayer or the taxpayer's spouse, as the case requires.

Amendments Schedule 1

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 23

shared care rate is the standard rate in respect of the taxpayer or

the taxpayer's spouse worked out under clause 31 of Schedule 1 to

the A New Tax System (Family Assistance) Act 1999.

52 After paragraph 202(l)

Insert:

(la) to facilitate the administration of the Paid Parental Leave Act

2010; and

Income Tax Assessment Act 1997

53 Subsection 995-1(1)

Insert:

parental leave pay has the meaning given by the Paid Parental

Leave Act 2010.

Medicare Levy Act 1986

54 Paragraph 8(1)(b)

Omit "subsection 159J(1AA) or (1AB)", substitute "subsection

159J(1AB) or 159JA(1)".

55 Paragraph 8(1)(d)

Omit "subsection 159L(3A) or (3B)", substitute "subsection 159L(3B)

or 159LA(1)".

56 Paragraph 8(2)(b)

Omit "subsection 159J(1AA) or (1AB)", substitute "subsection

159J(1AB) or 159JA(1)".

57 Paragraph 8(2)(d)

Omit "subsection 159L(3A) or (3B)", substitute "subsection 159L(3B)

or 159LA(1)".

Social Security Act 1991

58 Subsection 8(1)

Insert:

Schedule 1 Amendments

24 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

instalment of parental leave pay means an instalment of parental

leave pay under the Paid Parental Leave Act 2010.

59 After paragraph 8(8)(c)

Insert:

(d) an instalment of parental leave pay;

60 After paragraph 93WC(2)(a)

Insert:

(aa) includes an instalment of parental leave pay; and

61 Point 1064-F14 (at the end of the definition of leave

payment)

Add ", but does not include an instalment of parental leave pay".

62 Point 1066A-G14 (at the end of the definition of leave

payment)

Add ", but does not include an instalment of parental leave pay".

63 Point 1067G-H20 (at the end of the definition of leave

payment)

Add ", but does not include an instalment of parental leave pay".

64 Point 1067L-D16 (at the end of the definition of leave

payment)

Add ", but does not include an instalment of parental leave pay".

65 Point 1068-G7AR (at the end of the definition of leave

payment)

Add ", but does not include an instalment of parental leave pay".

66 Point 1068A-E12 (at the end of the definition of leave

payment)

Add ", but does not include an instalment of parental leave pay".

67 Point 1068B-D18 (at the end of the definition of leave

payment)

Add ", but does not include an instalment of parental leave pay".

Amendments Schedule 1

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 25

68 Point 1071A-4 (at the end of the definition of income)

Add:

; and (f) instalments of parental leave pay.

69 After paragraph 1228(2)(c)

Insert:

(ca) an instalment of parental leave pay; or

70 Paragraph 1234A(1)(a)

After "the Farm Household Support Act 1992", insert ", the Paid

Parental Leave Act 2010".

Taxation Administration Act 1953

71 Paragraphs 8WA(1AA)(b) and 8WB(1A)(a) and (b)

After "(kb)", insert ", (la)".

72 After paragraph 12-110(1)(c) in Schedule 1

Insert:

(ca)

parental leave pay; or

73 At the end of section 16-155 in Schedule 1

Add:

Paid parental leave paid in error

(3) Despite subsection (2), the

payment summary must not cover a

withholding payment if:

(a) the withholding payment is a payment of an amount

purported to have been paid by way of

parental leave pay;

and

(b) the amount was not lawfully so payable.

(4) The payer must, within 28 days of becoming aware that the

payment summary covers a

withholding payment to which

subsection (3) applies:

(a) give the recipient an amended payment summary that does

not cover the withholding payment; or

(b) give the recipient notice in the

approved form; or

Schedule 1 Amendments

26 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

Leave Act 2010) notice in writing that the payer does not

intend to give the recipient an amended payment summary or

notice under this subsection.

74 At the end of section 16-160 in Schedule 1

Add:

(3) Despite subsection (1), the

payment summary must not cover a

withholding payment if:

(a) the withholding payment is a payment of an amount

purported to have been paid by way of

parental leave pay;

and

(b) at the time the recipient asks for the payment summary, the

payer is aware that the amount was not lawfully so payable.

75 Paragraph 18-65(1)(b) in Schedule 1

Repeal the paragraph, substitute:

(b)

either:

(i) the amount was so withheld, or paid to the

Commissioner, in error; or

(ii) in the case of an amount withheld from a payment of an

amount purported to have been paid by way of

parental

leave pay--the amount paid was not lawfully so

payable; and

76 Subparagraph 18-65(1)(c)(i) in Schedule 1

Omit "error", substitute "matter mentioned in paragraph (b)".

77 Paragraph 18-65(1)(c) in Schedule 1

Omit "21 July in the financial year after the one", substitute "the

financial year".

78 Paragraph 18-65(3)(e) in Schedule 1

Omit "error", substitute "matter mentioned in paragraph (1)(b) of this

section".

79 Subsection 18-65(4) in Schedule 1

Omit "error", substitute "matter mentioned in paragraph (1)(b)".

Amendments Schedule 1

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 27

80 Paragraph 18-70(1)(b) in Schedule 1

Repeal the paragraph, substitute:

(b)

either:

(i) the amount was so withheld, or paid to the

Commissioner, in error; or

(ii) in the case of an amount withheld from a payment of an

amount purported to have been paid by way of

parental

leave--the amount paid was not lawfully so payable;

and

81 Paragraph 18-70(1)(c) in Schedule 1

Omit "error", substitute "matter mentioned in paragraph (b)".

82 Paragraph 18-70(2)(e) in Schedule 1

Omit "error", substitute "matter mentioned in paragraph (1)(b)".

83 Subsection 355-65(2) in Schedule 1 (after table item 5)

Insert:

(a) the

Families Secretary; or

(b) the Chief Executive Officer

of Centrelink

is for the purpose of administering the

Paid Parental Leave Act 2010.

Veterans' Entitlements Act 1986

84 Subsection 5H(1)

Insert:

instalment of parental leave pay means an instalment of parental

leave pay under the Paid Parental Leave Act 2010.

85 After paragraph 5H(8)(c)

Insert:

(d) a payment of an instalment of parental leave pay;

86 After paragraph 45UUC(2)(a)

Insert:

(aa) includes an instalment of parental leave pay; and

87 After paragraph 205(1)(ca)

Schedule 1 Amendments

28 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

Insert:

(cb) an amount has purported to have been paid by way of

parental leave pay that was not lawfully so payable; or

88 Paragraph 205(2)(a)

After ", (ca)", insert ", (cb)".

89 Subsection 205(8) (paragraph (ba) of the definition of

excluded amount)

Omit "(1)(ca)", substitute "(1)(ca) or (cb)".

90 Subsection 205(8) (paragraph (a) of the definition of

recoverable amount)

Omit "or (ca)", substitute ", (ca) or (cb)".

Transitional provisions Schedule 2

Transitional provisions relating to employer determinations under the Paid Parental

Leave Act 2010 Part 1

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 29

Schedule 2--Transitional provisions

Part 1--Transitional provisions relating to employer

determinations under the Paid Parental

Leave Act 2010

1 Employer determination made where expected or actual

date of birth is before 1 July 2011

(1) The

Paid Parental Leave Act 2010 applies, with the modifications set

out in this item, in relation to a person who has made a claim for

parental leave pay for a child, if:

(a) for a claim made before the day the child is born--the

expected date of birth of the child is before 1 July 2011; or

(b) for a claim made after the child is born--the day the child is

born is before 1 July 2011.

Note:

For a claim made before the day the child is born, see subitem (9) if the expected date of

birth of the child is before 1 July 2011, but the child is born on or after that date.

(2)

Section 101 of that Act (and the other provisions of that Act so far as

they relate to that section) applies in relation to the person as if

subsections (1) and (2) of that section were omitted and the following

subsection substituted:

(1) The Secretary must make a determination under this section (the

employer determination) that a person's employer is to pay the

person instalments if the Secretary is satisfied, when making the

determination, that:

(a) a payability determination that parental leave pay is payable

to the person, or an initial eligibility determination for the

person, is in force; and

(b) the employer has made an election under section 109 that

applies to the person; and

instalments to the person; and

(d) the person is likely to be an Australian-based employee of the

employer during whichever of the following periods applies:

(i) if the Secretary has made a payability determination that

parental leave pay is payable to the person--the

person's PPL period;

Schedule 2 Transitional provisions

Part 1 Transitional provisions relating to employer determinations under the Paid

Parental Leave Act 2010

30 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

(ii) otherwise--the period of days for which instalments are

likely, if the determination is made, to be payable to the

person by the employer; and

(e) the employer has an ABN; and

(f) if paragraphs (b) to (e) are satisfied in relation to more than

one employer of the person--the person nominated the

employer in the claim as the employer who would be

required to pay instalments to the person.

(3)

For the purposes of this item, an employer determination made under

subsection 101(1), as that subsection applies because of subitem (2) of

this item, is a transitional employer determination.

(4)

The following provisions of that Act do not apply in relation to a

transitional employer determination:

(a) section 103 (which deals with responding to a notice of an

employer determination);

(b) subsection 107(2) (which deals with when an employer

determination comes into force);

review of employer determination decisions).

(5)

Within 14 days after the date of the notice given under section 102 of

that Act in relation to the transitional employer determination, the

employer may give the Secretary a written notice (the acceptance

notice) that complies with section 104 of that Act.

(6)

If the employer gives the acceptance notice to the Secretary within that

14 day period, the transitional employer determination comes into force

on the day the Secretary receives the acceptance notice.

(7)

If the employer does not give the acceptance notice to the Secretary

within that 14 day period, the following paragraphs have effect:

(a) the Secretary must revoke the transitional employer

determination;

(b) the revocation comes into force on the day of the revocation;

with giving notice of the revocation) applies in relation to the

revocation.

Transitional provisions Schedule 2

Transitional provisions relating to employer determinations under the Paid Parental

Leave Act 2010 Part 1

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 31

(8)

The Secretary may extend the 14 day period referred to in subitem (5)

in relation to an employer. If the Secretary does so, subitems (6) and (7)

have effect accordingly.

(9)

Despite paragraph (1)(a) and subitem (2) of this item, if the person's

child is born on or after 1 July 2011, then the following paragraphs have

effect:

(a) the Secretary may make an employer determination for the

person and the person's employer under section 101 of the

Paid Parental Leave Act 2010, as that section applies apart

from this item;

(b) if the Secretary does so and has previously made a

transitional employer determination for the person and the

employer, the Secretary is taken never to have made the

transitional employer determination.

(10)

The following provisions of the Paid Parental Leave Act 2010, apply in

relation to this item as if it were a provision of that Act:

(a) section 275 (which deals with how that Act applies to an

adopted child);

(b) section 276 (which deals with how that Act applies to claims

made in exceptional circumstances).

2 Employer determination made where expected date of birth

is on or after 1 July 2011 but child born before that date

(1)

This item applies if:

(a) the Secretary makes an employer determination for an

employer and a person under the Paid Parental Leave Act

2010; and

(b) the person's claim is made before the day the child is born;

and

2011; and

(d) the child is born before 1 July 2011; and

(e) the person's employer has not made an election under

section 109 of that Act that applies to the person.

(2)

If, after the employer determination is made, the Secretary makes a

payability determination that parental leave pay is payable to the person

for the child, the notice given to the employer under section 113 of that

Act must:

Schedule 2 Transitional provisions

Part 1 Transitional provisions relating to employer determinations under the Paid

Parental Leave Act 2010

32 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

(a) state the day the child was born; and

(b) be dated as at the date the preparation of the notice was

completed; and

determination will be revoked, unless the employer:

(i) agrees to being required to pay instalments to the

person, even though the child was born before 1 July

2011; and

(ii) gives the Secretary a written notice indicating that

agreement within 14 days of the date referred to in

paragraph (b).

(3)

If the employer does not give the notice referred to in

subparagraph (2)(c)(ii) to the Secretary within that 14 day period, the

following paragraphs have effect:

(a) the Secretary must revoke the employer determination;

(b) the revocation comes into force on the day of the revocation;

with giving notice of the revocation) applies in relation to the

revocation;

(d) section 103 of that Act (which deals with responding to a

notice of an employer determination) is taken to have never

applied in relation to the employer determination.

(4)

The following provisions of that Act apply in relation to this item as if it

were a provision of that Act:

(a) section 275 (which deals with how that Act applies to an

adopted child);

(b) section 276 (which deals with how that Act applies to claims

made in exceptional circumstances).

Transitional provisions Schedule 2

Other transitional provisions Part 2

Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010 33

Part 2--Other transitional provisions

3 Eligibility for baby bonus

The amendments of section 36 of the A New Tax System (Family

Assistance) Act 1999 made by this Act do not affect:

(a) an individual's eligibility under subsection 36(2) of that Act

for baby bonus in respect of a child who was born before

1 January 2011; or

(b) an individual's eligibility under subsection 36(3) of that Act

for baby bonus in respect of a child who was entrusted to the

person's care before 1 January 2011; or

for baby bonus in respect of a child who was delivered before

1 January 2011; or

(d) an individual's eligibility under subsection 36(5) of that Act

for baby bonus in respect of a child who was entrusted to the

person's care before 1 January 2011.

4 Eligibility for maternity immunisation allowance

The amendment of section 39 of the A New Tax System (Family

Assistance) Act 1999 made by this Act does not affect an individual's

eligibility under subsection 39(3) of that Act for maternity

immunisation allowance in respect of a child who was delivered before

1 January 2011.

5 Claims for family tax benefit, baby bonus or maternity

immunisation allowance

(1)

The amendments of the A New Tax System (Family Assistance)

(Administration) Act 1999 made by this Act do not affect a claim for

family tax benefit, baby bonus or maternity immunisation allowance

made under that Act before 1 October 2010.

(2)

Without limiting subitem (1), the amendment of section 47B of the A

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

by this Act does not affect a claim for baby bonus made under that Act

before 1 January 2011.

6 Existing notifications given under section 45 of the Child

Support (Registration and Collection) Act 1988

To avoid doubt, if:

Schedule 2 Transitional provisions

Part 2 Other transitional provisions

34 Paid Parental Leave (Consequential Amendments) Bill 2010 No. , 2010

(a) a notice was given under section 45 of the Child Support

(Registration and Collection) Act 1988 before the

commencement of this item instructing an employer to make

periodic deductions from a person's salary or wages; and

(b) the notice was in force immediately before that

commencement;

the notice continues in force after that commencement as if those salary

or wages included the person's instalments of parental leave pay.

7 Application of section 72AD of the Child Support

(Registration and Collection) Act 1988 to existing

liabilities

To avoid doubt, section 72AD of the Child Support (Registration and

Collection) Act 1988 as inserted by this Act applies in relation to:

(a) a liability of a kind referred to in subparagraph (1)(b)(i) of

that section; or

(b) a debt of a kind referred to in subparagraph (1)(b)(ii) of that

section;

that existed immediately before the commencement of this item in the

same way that it applies to such a liability or debt that comes into

existence after that commencement.

Commonwealth of Australia Bills

PAID PARENTAL LEAVE (CONSEQUENTIAL AMENDMENTS) BILL 2010