The following information on Child Care Subsidy balancing has been provided to assist you in understanding the process.
Centrelink is balancing families' Child Care Subsidy (CCS) entitlements. If you have any questions visit www.humanservices.gov.au/balancing. There is more information on the Centrelink website to help understand the balancing process.
Throughout the year, Centrelink pays your Child Care Subsidy (CCS) based on the details you’ve given them. At the end of the financial year, they balance your CCS to make sure you received the right amount.
Centrelink is balancing CCS for the 2018–19 financial year. Your CCS won’t be balanced straightaway. It can take some time.
Here’s how Centrelink gets to your outcome.
1. You confirm your income
You need to confirm your family’s income for the 2018–19 financial year before Centrelink can balance your CCS. You and your partner do this by lodging your tax returns with the Australian Taxation Office. If you don’t need to lodge a tax return, you need to tell Centrelink by doing an ‘Advise non-lodgement’ with them. You can do that either in your:
- Centrelink online account through myGov, or
- Express Plus Centrelink mobile app.
2. Centrelink works out your CCS entitlement
Once you’ve confirmed your family income, Centrelink will work out how much subsidy you were entitled to for the financial year. They compare that amount to how much you were paid throughout the year.
Centrelink then makes any necessary adjustments. This includes adding CCS withheld throughout the year. Centrelink withholds 5% of your weekly CCS during the year as a default.
If you were paid too much CCS at any time during the year, Centrelink will also factor that in. This may happen if you had a change in your family’s circumstances or if your family income estimate was lower than your actual income.
3. Centrelink tells you your outcome
Once Centrelink has considered all of these factors, they send you a letter with your outcome. The letter will outline how they’ve worked out your outcome.
There are three possible outcomes:
- A top-up payment – you don’t need to do anything else. Centrelink will pay this money to the bank account you have given them.
- No further action – you received the correct amount of CCS during the year.
- An overpayment – you may need to take action to pay back any money you owe. If you don’t set up a payment plan or pay the money back in full by the due date, Centrelink may reduce your future CCS to pay off the debt. Centrelink will work with you to set up a repayment plan you can afford.