The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

7.2.10 Debt recovery of CCS/ACCS by offsetting - prior to reconciliation

Summary

This section contains information relating to debt (1.1.D.60) recovery by setting-off against future CCS or ACCS payments. This type of debt recovery will occur prior to reconciliation (1.1.R.10).

Debt incurred by approved provider

An approved provider (1.1.A.90) may incur a debt if a child care service of the provider:

  • substitutes a session of care report (1.1.S.35) with an updated report and the amount of CCS or ACCS initially paid was more than what should have been paid, or
  • cancels a session of care report and an amount of CCS or ACCS has already been paid to the provider for that report.

A debt incurred by the actions of an approved child care service is owed by the approved provider that operates that service. The debt amount will firstly be automatically offset (at a default of 50%) against the future payments made to that service that undertook the action that led to the debt being incurred. If the payments to that service are insufficient to recover the debt owed in a reasonable period, payments to other services operated by that approved provider may be offset, up to 50%, to recover the debt.

Example: An approved provider operates 3 services (A, B and C). Service A submits a session report and is paid an amount of CCS. Service A then substitutes that report with another and the amount of CCS initially paid was more than what should have been paid. The debt amount (the difference between what was paid and what should have been paid) will be automatically offset (at a default of 50%) against future payments made to service A. If the payments to service A are insufficient to recover the debt owed in a reasonable period, payments made to services B or C may be offset, up to 50%, to recover the debt.

Act reference: FA(Admin)Act section 71C Debts in respect of CCS or ACCS—overpayment, section 82 Methods of recovery, section 87A Setting off debts of an approved provider against child care service payments

Debt incurred by individual

An individual (1.1.I.90) may incur a debt if:

  • they report a change in circumstances that might affect their eligibility or entitlement (1.1.E.30) to CCS or ACCS
  • the ATI (1.1.A.20) has been underestimated for the income year, or
  • they (and their partner (1.1.P.30) or ex-partner) fail to meet reconciliation conditions set out in FA(Admin)Act section 103A.

Debts raised during the year will not have any recovery action taken until reconciliation. There are instances where debts (of any amount) that occur during the year are raised and become recoverable, however, this only occurs at the individual’s request. In these instances, the individual must enter into a payment arrangement within 28 days (which, if they are current CCS only customers, will include automatic 20% withholdings from their ongoing CCS entitlement), or interest may be applied.

Act reference: FA(Admin)Act section 71C Debts in respect of CCS or ACCS—overpayment, section 82 Methods of recovery, section 103A CCS reconciliation conditions

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