4.6.4.20 No CCB as Reduced Fees - Any CCB Entitlement at End of Year

Summary

This topic explains the option families have (if they are conditionally eligible for CCB by fee reduction) to defer receiving fee reductions and to receive their CCB entitlement after the end of the income year when their actual income is known. These families can still choose to receive their CCR as a fortnightly payment directly to a nominated bank account or to one or more approved child care service/s or quarterly payment directly to a nominated bank account or after the end of the income year.

Who will benefit from this option?

This option will assist families who are unable to accurately estimate their income at the start of the income year, and wish to avoid a CCB debt, in particular those families whose incomes are less than the amounts stated in the table below but there is a possibility that these income limits could be exceeded. If the families provide an income estimate and their TFN to Centrelink, they can receive fortnightly CCR payments directly to a nominated bank account or to one or more approved child care service/s or quarterly CCR payments directly to a nominated bank account through the year and their CCB entitlement (if any) after reconciliation of CCB. Otherwise, they can claim their lump sum CCB and their annual entitlement to CCR after the end of the income year.

Number of children using care To be entitled to a payment of CCB your family income should be:
1 less than $156,914
2 less than $162,633
3 less than $183,655
More than 3 for each additional child using child care add $34,724

Reconciliation (1.1.R.10)

Individuals who choose this deferment option have to provide an income estimate as well as their TFN and bank account details to enable payment of any entitlement after the end of the income year. Any entitlement cannot be paid until the individual, and their partner if they have one, have lodged a tax return or have informed Centrelink that they are not required to lodge, and attendance information from the individual's child care service has been lodged and processed by Centrelink. In the case of individuals or partners whose income is less than the tax-free threshold and are subject to the low-income rules, they are reconciled using their most recent estimate in mid-November each year without having to lodge a tax return or advise Centrelink that they are not required to lodge.

Individuals who choose this option are not at risk of an overpayment. Their entitlement will not be paid until after their actual income is known. This option was introduced in 2003.

Act reference: FA(Admin)Act section 65EAAAA Individual may elect to have CCR paid in various ways

Policy reference: FA Guide 1.1.M.60 Minimum hourly rate (CCB), 1.1.R.10 Reconciliation of CCB entitlement (CCB), 4.6.1 General Provisions for Individual's Claims & Payments, 4.6.2 Approved Care CCB - Individual's Claim

Last reviewed: 3 July 2017