1.1.E.26 Enrolment advance
Note: Enrolment advances only apply to services operating under the CCMS.
As of 1 July 2017, enrolment advances are no longer payable to services.
What were enrolment advances (prior to 1 July 2017)
Enrolment advances were a payment to assist services with their cash flow prior to the payment of the first week's fee reduction amounts. Services (excluding occasional care types) were able to elect whether or not they were paid an enrolment advance at the point of creating a formal enrolment or when formalising an informal enrolment.
Recovery of enrolment advances
Once an enrolment has ended, the enrolment advance will be recovered by offsetting from the next payment due to the service. This process will continue after 1 July 2017.
The amount of enrolment advance recovered will always be the same amount as originally paid to the service, regardless of indexation.
If a service ceases to operate, all outstanding enrolment advance amounts will be offset prior to the service closing, if possible. If enrolment advances remain outstanding once the service ceases to operate, it will become a debt to the Commonwealth.
From 1 July 2017, any enrolment record with a 'start date' of 1 July 2013 or older, with an enrolment advance applicable, will be automatically recovered even if the child is still enrolled at the service. The CCMS will identify and recover enrolment advance payments older than four years on the first day of every month until they are recovered in full.
Act reference: FA(Admin)Act section 219R Election to receive enrolment advance, section 219RA Payment of enrolment advance, section 219RB Amount of enrolment advances, section 219RC Setting off enrolment advance when enrolment ceases or decision to cease operating service is notified
FA(Admin)Act pre-1 July 2017 section 219R Election to receive enrolment advance, section 219RA Payment of enrolment advance, section 219RC Setting off enrolment advance when enrolment ceases or decision to cease operating service is notified