How we balance Child Care Subsidy (CCS)

30 July 2019

We’re now balancing CCS for 2018-19. Once we’ve balanced yours, we’ll let you know. See how we work out your outcome.

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Balancing family payments isn’t a new process. However, if it’s your first year claiming it may be new to you. You may be wondering how it works.

We pay your subsidy throughout the year based on the details you tell us. We pay CCS based on the following:

You need to regularly check and update your details. Don’t leave it until the end of financial year to do this.

At the end of the financial year, there are 3 steps to work out your balancing outcome.

1. You need to confirm your income

To confirm your family’s income, you and your partner need to lodge your tax returns with the Australian Taxation Office. If you don’t need to lodge a tax return, you need to tell us. You must take action before we can balance your CCS.

2. We work out your actual entitlement

Once you’ve confirmed your family’s income we work out how much subsidy you were entitled to for the year. We do this by applying the family income test to your confirmed adjusted taxable income. We then compare this amount to how much subsidy you got throughout the year.

Once we’ve done this, we make any necessary adjustments. This includes considering the CCS we withheld throughout the year and if you were overpaid at anytime.

3. We tell you your outcome

There are 3 possible results:

Balancing your subsidy won’t happen straightaway. It may take some time. You don’t need to call us to check its progress. Keep track by checking your:

We’ll send you a letter with your outcome. If your outcome is a top up or no impact, you won’t need to do anything. If you were overpaid, you may need to pay it back.

Next steps

Update your family income estimate for the 2019-20 financial year.

Change your withholding percentage if you need more of a buffer.

Remember to report a change in circumstances throughout the year.

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Page last updated: 30 July 2019