Child Care Subsidy

If you get both Child Care Subsidy and Family Tax Benefit

We pay both the subsidy and Family Tax Benefit (FTB) based on your family income estimate. The higher your estimate is, the less subsidy and FTB you’ll get.

If you get Family Tax Benefit and Child Care Subsidy it’s twice as important your family income estimate is accurate.

We’ll pay both your subsidy and FTB based on your family income estimate. The higher your estimate is, the less subsidy and FTB you’ll get.

If you earn more than what you estimated, we may pay you too much subsidy and FTB. If this happens, you’ll owe us money which you’ll have to pay back.

If you overestimate your income and don’t get enough subsidy or FTB, we may pay you a top up  when we balance your payments.

Read more about how your income affects Child Care Subsidy.

What you need to do

You need to let us know when there’s a change to your family’s income. You may also want to update your subsidy withholding percentage.

Update your family’s income estimate

Even a small change in your family’s income can affect your payment. As soon as you know there may be a change, update your estimate as soon as possible. We’ll adjust your payments so we don’t overpay you.

It’s even more important you check and update your estimate regularly if either:

You can update your estimate at any time using your Centrelink online account through myGov. You can also use the Express Plus Centrelink mobile app. It only takes a few minutes to do and you can do it yourself online.

Adjust the amount withheld

You can increase your subsidy withholding percentage. We automatically withhold 5% of your subsidy payments to help reduce the chance of you owing money. You can increase your withholding online, up to two times a year.

You can update your withholding using your Centrelink online account through myGov. You can also use the Express Plus Centrelink mobile app. It only takes a few minutes to do and you can do it yourself online.

Page last updated: 8 February 2019