4.12 CCR - Payments
Note: From 2 July 2018 there will be a new Child Care Package. As part of the changes, CCB and CCR will cease on 1 July 2018. A new Child Care Subsidy to replace CCB and CCR will start from 2 July 2018. To find out more, and to estimate what the new subsidy might be, please go to the Department of Education and Training's The New Child Care Package page.
This section contains one topic on the general provisions applying to an individual's eligibility for and payment of CCR. It covers:
- calculating fortnightly payments for CCR,
- calculating quarterly payments for CCR,
- determining annual entitlement for CCR,
- notification of payment, and
- payment to a third party.
Note: No actual claim for CCR is required. Any CCR entitlement is calculated and paid using an individual's entitlement to CCB and the individual's out-of-pocket expense after any CCB entitlement has been deducted from their fees.
Calculating fortnightly payments for CCR
From July 2011, the fortnightly payments for each income year will be based on an individual's CCB fee reduction amount. For individuals in receipt of a nil amount of CCB, the full 50% CCR will be paid up to the annual limit. After the end of the income year, an individual's annual CCR entitlement will be determined after an individual's CCB entitlement is determined at reconciliation.
For individuals in receipt of a more than a nil amount of CCB, Centrelink will withhold a reduction amount of 15% to provide a reserve to minimise an individual's debt that may be determined after the end of the income year. The reserve withheld will be reconciled at the end of the financial year and any outstanding amounts will be paid to the individual.
Calculating quarterly payments for CCR
For the first 3 quarters of each income year, the quarterly payments for the CCR will be based on an individual's CCB fee reduction amount. After the end of the income year, an individual's annual CCR entitlement will be determined after an individual's CCB entitlement is determined at reconciliation. Any quarterly payments made throughout the year will then be deducted from this actual entitlement and any remaining CCR will be paid (including any quarters not paid) to the individual or a debt raised if the individual has received too much CCR throughout the year.
Determining annual entitlement for CCR
A determination of entitlement for CCR for costs of care provided in an income year is made once a determination of entitlement for CCB or a determination of no entitlement for CCB because of zero rate for that year is made. If an individual is not eligible for CCB then they will not be entitled to CCR.
Act reference: FA(Admin)Act Part 3 Division 4AA CCR, section 65EA Determining entitlement, or no entitlement, to CCR-eligibility for CCB by fee reduction, section 65EAAAA Individual may elect to have CCR paid in various ways, section 65EB Determining entitlement, or no entitlement, to CCR-eligibility for CCB for past period, section 65EC Later determinations of entitlement to CCR, section 65EAA Quarterly payments of CCR
Notification of payment
Individuals will receive notification of:
- the amount of each fortnightly CCR payment,
- the amount of each quarterly CCR payment, and
- the determination of their annual CCR entitlement.
Notification providing details of the payment will be sent to the individual.
Act reference: FAAct section 57EAA Eligibility for CCR-for a week, section 57EA Eligibility for CCR-for a quarter, section 84A Amount of the CCR-for an income year, section 84AA Amount of the CCR-for a quarter, section 84AAA Amount of CCR-for a week, section 84AAC Component of formula-reduction percentage
FA(Admin)Act section 65EAC Notices relating to quarterly payments of CCR, section 65EE Notice of determination
Payment to a third party
Payment of CCR to a third party is consistent with payment of CCB and FTB to a third party.
Act reference: FAAct section 46 Eligibility for CCB if a conditionally eligible or eligible individual dies
FA(Admin)Act section 219TF Payment of amounts to payment nominee