CCS Quick Guide to Overpayment
Many families across the country have had their Child Care Subsidy payments balanced for the first time, and for some, they will have received an overpayment.
Enrolment Hub we have broken down Department of Human Services General Manager Hank Jongen tips to help families understand what getting a Child Care Subsidy overpayment means:
Managing an overpayment
If families have received an overpayment, they will receive a letter from the Government, which for the vast majority of families will appear in their myGov inbox.
The letter will detail what subsidy they received, what they were entitled to and the difference, if any, between these.
As part of trying to help families avoid a debt, the Government automatically withholds (at least) five per cent of the CCS payment throughout the year. This withheld amount will be used at balancing time to offset any overpayments received. However, if your overpayment is greater than your withholdings, the family will need to pay this money back.
Families have 28 days to do this. The letter will also detail other repayment options available.
If a family does not repay their debt within 28 days, the government will set up an automatic deduction. They can recover the debt from a Families Family Tax Benefit or income support payment or future CCS payments.
Families can manage and view their debts online by selecting Money You Owe in their Centrelink online account through myGov or the Express Plus Centrelink mobile app.
Seeking a review of the decision
Families have the right to ask the Government to review the decision. The first step in this process is to ask the family to have a chat to the Department who will explain the balancing outcome and check the decision. If there has been a mistake, it may be possible to fix it, without having to start a formal process.
If a family still disagree with the decision, they can begin a formal review process. To formally review a CCS payment decision, the family must call 136 150, visit a service centre or complete a Review of Decision form.
During a review process the family may still need to make payments towards the debt. If the review finds they owe less money, and they have no other outstanding debt, they will receive a refund of any additional money paid. Families can also ask for the debt repayments to be paused throughout the review process.
How to reduce the chance of being overpaid
As we approach the mid-point mark of this financial year, it is a good time for families to think about their estimate. It’s important that families estimate their income as accurately as they can. It’s important to remember that bonuses, extra shifts over holiday periods, a change in relationship status, activity level decreases or a promotion can impact a family’s estimate and the subsidy they are entitled to. Income can be updated as often as they like.
Another option available to families is to increase the amount of CCS that we withhold. If a family increases this, the Government will withhold more of the regular payment going to their child care provider. This will mean child care fees will increase, however at the end of next financial year if a family has an overpayment and as a result a debt, the Government will use the withholdings to reduce the debt. For some families this could mean their overpayment is covered and no debt is raised.
If you are still unclear about anything, don’t forget our Accounts Team are ready to answer any of your questions. Just give them a call on 02 8123 2300.
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