The Child Care Subsidy (CCS) balancing process (also known as reconciliation) is underway for the 2018‑19 and 2019‑20 financial years.
What is “balancing”?
Balancing, also referred to as “reconciliation”, is the process that occurs after the end of each financial year where Services Australia compares families’ income estimates with their actual adjusted taxable income to ensure families receive their correct Child Care Subsidy (CCS) entitlement.
What do families need to do?
Families will need to take action so Services Australia can balance their CCS. They will need to either:
- lodge a tax return(s), or
- tell Services Australia they are not required to lodge a tax return. Families can do this by completing an Advise non-lodgement of tax return using their Centrelink online account through myGov or through the Express Plus Centrelink mobile app.
Important: Even if a family has told the ATO they don’t need to lodge, they must still do an Advise non-lodgement of tax return with Services Australia.
CCS balancing for 2019–20 financial year
Balancing CCS for the 2019–20 financial year starts from 10 August 2020.
If Services Australia has paid a family too much during the financial year, they won’t finalise balancing the family’s payments straight away. This is because they have paused a range of debt activities due to COVID-19.
CCS balancing for 2018–19 financial year
Balancing for the 2018–19 financial year is still underway.
Some families still have not confirmed their 2018–19 income, which means they may not have received the correct CCS entitlement for the 2018–19 financial year.
If a family received CCS for 2018–19 and haven’t confirmed their family income by 31 March 2021, their CCS will reduce to 0 per cent from 5 April 2021. This means families will need to be charged full fees for child care they use.