Federal Register of Legislation - Australian Government

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Determinations/Health as made
The purpose of the determination is to make GST-free, from 1 January 2001, a supply of in-home care, that is, child care provided in the home of a child, by a supplier that is eligible for funding from the Commonwealth under guidelines made by the Child Care Minister relating to that care but is not approved as an approved child care service under the A New Tax System (Family Assistance) (Administration) Act 1999.
Administered by: Treasury
Registered 22 Feb 2007
Tabling HistoryDate
Tabled HR26-Feb-2001
Tabled Senate26-Feb-2001
Gazetted 16 Jan 2001
Date of repeal 24 Mar 2017
Repealed by GST-free Supply (Long Day Care and In-home Care) Determination 2017

EXPLANATORY STATEMENT

 

 

GST-free Supply (In-home Care) Determination 2001

 

Summary

 

This determination is made under paragraph 38-150(e) of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act).

 

The purpose of the determination is to make GST-free, from 1 January 2001, a supply of in-home care, that is, child care provided in the home of a child, by a supplier that is eligible for funding from the Commonwealth under guidelines made by the Child Care Minister relating to that care but is not approved as an approved child care service under the A New Tax System (Family Assistance) (Administration) Act 1999 (the Family Assistance Administration Act).

 

Background

 

Subdivision 38-D of the GST Act deals with GST-free supplies of child care.  It makes GST-free a supply of child care by a child care service approved under the Family Assistance Administration Act for the purposes of family assistance law (parents may be eligible for child care benefit for that care) and a supply by a supplier that is not so approved but is eligible, under guidelines made by the Child Care Minister, for funding from the Commonwealth relating to specified types of care (parents are not eligible for child care benefit for that care).

 

Before 1 January 2001, in-home care, that is, child care provided in the home of a child, was provided by family day care services approved under the Family Assistance Administration Act for the purposes of family assistance law.  This supply of child care was GST-free under section 38-150 of Subdivision 38-D of the GST Act, as it operated before the commencement of the Taxation Laws Amendment Act (No. 8) 2000 (amendments made by this Act affected the operation of section 38‑150).

 

From 1 January 2001, in-home care may be provided by a family day care service and any other kind of service approved for the purposes of family assistance law, including a specialised in-home care service.  Such a supply is GST-free under section 38-145 of Subdivision 38-D of the GST Act, as amended by the Taxation Laws Amendment Act (No. 8) 2000.

 

In-home care may also be provided by suppliers that are not approved for the purposes of family assistance law but are eligible, under guidelines made by the Child Care Minister, for funding from the Commonwealth relating to in-home care (for example, Commonwealth funded in-home care may be supplied by innovative child care services as part of a mix of child care types they provide to meet best the needs of individual communities).  The provisions of Subdivision 38-D of the GST Act do not operate to make GST-free a supply of in-home care by those suppliers.

 

Paragraph 38-150(e) of the GST Act authorises the Child Care Minister to determine in writing a type of care provided by a supplier that is eligible for funding from the Commonwealth under guidelines made by the Child Care Minister relating to that care, for the purpose of making a supply of care by that supplier GST-free.

 

As it is intended that a supply of in-home care by a supplier that is not approved for the purposes of family assistance law but is eligible for Commonwealth funding in relation to that care is GST-free, this determination, made under paragraph 38-150(e) of the GST Act, makes in-home care supply by those suppliers GST-free.

 

The determination takes effect on 1 January 2001.  It has the effect of removing liability for GST of suppliers of Commonwealth funded in-home care that are not approved for the purposes of family assistance law.  This determination therefore does not result in the imposition of liabilities on any person in respect of anything done or omitted to be done before the date of its notification and it does not affect the right of any person so as to disadvantage that person.

 

Explanation of the provisions

 

Section 1 of the determination states the name of the determination and section 2 states that the determination commences on 1 January 2001.

 

Section 3 contains interpretation provisions.

 

Section 4 provides that a determination is made under paragraph 38-150(e) of the GST Act determining a supply of child care to be GST-free if it is a supply by a supplier that is eligible for funding from the Commonwealth under guidelines made by the Child Care Minister relating to in-home care.  Section 4 makes GST-free in‑home care supplied by a supplier that is not approved for the purposes of family assistance law (in-home care supplied by approved child care services is GST-free as a result of the operation of section 38-145).

 

“In-home care” is defined in section 3 as child care provided to one or more children that takes place in the home of one of the children being cared for.

 

The “Child Care Minister” is defined by reference to section 195-1 of the GST Act, which specifies that it is the Minister administering the Child Care Act 1972 and the family assistance law (within the meaning of section 3 of the Family Assistance Administration Act).