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Important Update on Child Care Subsidy Payments
More than 240,000 families rely on the Child Care Subsidy (CCS) provided through Centrelink, a vital financial support system for many Australians. Recently, a significant number of families may have noticed a halt in their CCS payments due to a critical deadline that occurred last week.
Key Deadline for Income Confirmation
If you received the Child Care Subsidy during the 2023-24 financial year and failed to confirm your family’s income by 30 June, your payments would have been suspended. From 7 July onwards, any individual failing to meet this income confirmation requirement has seen their subsidy reduced to zero.
Confirming Your Income
Services Australia is urging those affected by this stoppage to promptly confirm their income for the 2023-24 financial year to have their payments reinstated. The agency emphasises, "Confirm your income now if your Child Care Subsidy has stopped."
You can confirm your income in two ways:
- Lodging a tax return
- Indicating that you are not required to lodge a tax return
If you do not need to lodge a tax return, you can notify Services Australia by accessing your Centrelink online account via myGov or using the Express Plus Centrelink app. Within the app, navigate to ‘More’ on your home screen, then choose ‘Advise’ for tax non-lodgement.
It is essential for recipients who had a partner during the 2023-24 year to ensure that their partner completes the income confirmation process as well.
Payment Restoration Process
Once you confirm your income, Services Australia can reinstate your CCS, assuming you still qualify for the subsidy. "Your CCS will resume from the first day of the next CCS fortnight after your confirmation," the agency stated. The CCS fortnight operates on a two-week cycle starting every second Monday.
However, you should be aware that if there’s a gap between your subsidy stopping and starting again, Services Australia will not provide backpay for this period.
Annual Income Balancing
At the end of each financial year, Services Australia conducts an income balancing process. This involves comparing the income estimates provided by families throughout the year with their actual income. Hank Jongen, general manager of Services Australia, explained, "This is how we verify you received the correct amount throughout the year."
Families typically have up to one year from the end of the financial year to confirm their income for the CCS. Services Australia will send notifications to remind recipients before this deadline. For example, those who received the subsidy during the 2024-25 financial year will need to confirm their family income by 30 June 2026 to avoid payment disruptions.
Action Required
If your Child Care Subsidy payments have ceased, it’s crucial to act swiftly to confirm your income to ensure the continuation of this essential support. For detailed information, recipients should refer to the Services Australia website or contact their customer service for guidance.
This process is crucial not only for reactivating the payments but also for maintaining the financial stability that many families depend on for their children’s early education and care.
