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Child Care Subsidy Payments Halted for Families: What You Need to Know
Over 240,000 families in Australia depend on the Child Care Subsidy (CCS) available through Centrelink, but many may have recently seen their payments suspended. This situation arises due to a crucial deadline for confirming income that was missed last week.
If families received the CCS during the 2023-24 financial year and did not confirm their income by 30 June, their payments would have ceased. Effective 7 July, those who failed to meet this requirement will see their subsidy drop to zero per cent.
Services Australia emphasises the urgency for recipients to confirm their family’s income to reactivate their payments. "Confirm your income now if your Child Care Subsidy (CCS) has stopped," a Services Australia representative advised.
How to Confirm Your Income
There are two primary methods to confirm income:
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Lodging a Tax Return: Families can confirm their income by submitting a tax return for the income year 2023-24.
- Non-Liability Notification: If a tax return is not necessary, recipients can notify Services Australia that they are exempt from lodging by accessing their Centrelink online account through myGov or the Express Plus Centrelink app.
For app users, it is straightforward: simply select ‘More’ from the home screen, followed by ‘Advise’ tax non-lodgement.
Reactivation of Payments
Once the income confirmation is submitted, Services Australia can reinstate the CCS as long as eligibility is maintained. Payments will resume from the first day of the next CCS fortnight after income confirmation. It is important to note that if there is a lag between the stoppage and resumption of the CCS, back payments will not be provided for this interval.
Year-End Balancing and Future Deadlines
Every year, Services Australia conducts a balancing process, comparing the estimated income provided by families with their actual income to ensure accurate payments throughout the year. Hank Jongen, a general manager at Services Australia, explained, “This is how we verify that you received the correct amount during the year.”
Typically, families have one year following the end of the financial year to confirm their income for the CCS. Services Australia sends out reminders before this deadline. For instance, families who received the subsidy in the 2024-25 financial year must confirm their income by 30 June 2026 or face the risk of their payments being halted.
Key Takeaways
- Deadline: Missed income confirmation deadlines can lead to the cessation of Child Care Subsidy payments.
- Actions Required: Confirm your family income through tax return submission or by notifying Services Australia of non-lodgement.
- Payment Reactivation: Payments will resume based on confirmed income without back payments for any gaps.
- Annual Process: Be proactive in the income balancing process and adhere to confirmation deadlines to avoid disruption in subsidies.
This proactive approach will ensure continuous support for families relying on the Child Care Subsidy, safeguarding their financial stability while managing childcare costs. If you currently receive the subsidy and have experienced payment interruptions, addressing this matter swiftly is crucial.
