Payment choices to reduce your risk of overpayment of Child Care Benefit for approved care

Payment choices help reduce your risk of being overpaid Child Care Benefit for approved care.

You can claim Child Care Benefit as a lump sum or as a fee reduction.

If you choose to receive Child Care Benefit as a fee reduction, we'll calculate your rate and percentage based on your family income estimate. The higher the percentage of Child Care Benefit you're entitled to, the more your approved child care service will reduce your fees.

Reduce your risk

You can reduce your risk of being overpaid by using one or more of the payment choices below. We'll pay you any outstanding amount you're owed when we balance your payments at the end of the financial year. We do this once we know your family’s actual annual income details and when all child care attendance details have been received.

Adjusting future percentage

Every time you update your circumstances or income estimate, we'll check to see whether you've already been overpaid and automatically adjust your percentage if necessary.

Rounding down the percentage

Your Child Care Benefit percentage is calculated to 2 decimal points. You can choose to round down the percentage. For example, 43.28% can be rounded down to 43%.

Percentage reduction

Once we've calculated your percentage for the current financial year, you can choose to reduce it. You'll need to contact us at the beginning of each financial year if you want to continue having a percentage reduction applied for that year.

Zero rate entitlement to be paid after the end of the financial year

You can choose not to receive any Child Care Benefit throughout the year and be assessed for any entitlement after the end of a financial year when we balance your payments.

Zero rate only

You can choose zero rate only if you wish to be assessed for Child Care Rebate and don’t wish to receive any Child Care Benefit.

You can change your payment choice at any time by calling the Families line or visiting your nearest service centre.

Read more about balancing your family assistance payments and balancing your child care payments.

Page last updated: 5 October 2016

This information was printed Sunday 25 June 2017 from It may not include all of the relevant information on this topic. Please consider any relevant site notices at when using this material.