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

Payment choices help reduce the risk of overpayment of 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 overpayment by using one or more of the payment choices below. We'll pay you any outstanding amount we owe you 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 we receive all child care attendance details.

Adjusting future percentage

We check for any overpayment every time you update your circumstances or income estimate. When this happens we’ll automatically adjust your percentage if necessary.

Rounding down the percentage

We calculate your Child Care Benefit percentage to 2 decimal points. You can choose to round down the percentage. For example, you can choose to round 43.28% 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

You can choose not to receive any Child Care Benefit throughout the year. Instead, we can assess 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 want us to assess you for Child Care Rebate only and don’t want to receive Child Care Benefit.

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

Read more about balancing your family assistance payments

Page last updated: 4 June 2018