Parents are being warned they’re at risk of missing out on their Family Tax Benefit or Child Care Subsidy for an entire year if they don’t confirm their income in the next few days.
With the end of the financial year looming, and free childcare ending next month it means the Child Care Subsidy (CCS) is set to kick in again – and there are a few things you need to do so you don’t risk getting a debt or missing out on payments.
Lodging a tax return for CCS and FTB
According to Services Australia, families must confirm their income by lodging a tax return with the ATO by June 30, 2020 if they received FTB or CCS in the 2018-19 financial year. If you don’t you’ll miss out on your FTB supplements and top-ups for that year and your CCS will reduce to zero from July 13.
You many also have to repay all of the FTB and CCS you received for the 2018-19 financial year (and this includes CCS paid on your behalf to your childcare provider).
What is the Child Care Subsidy?
The Child Care Subsidy is a means-tested subsidy paid directly to your child care service, reducing the fees parents pay. Parents pay the service provider the difference between the fee charged and the subsidy amount.
During Covid-19 the government provided free child care, giving new funding directly to child care operators. While these arrangements are in place, the CCS does not apply, because those who sent their children to child care pay no fee directly. Free child care is set to end next month, which means the CCS will resume.
If you’re new to child care
If you’re new to child care, you should claim the CCS as soon as you can, because from July 13, 2020, free child care will end and you’ll pay full fees, unless you’re getting CCS.
To claim CCS, sign into MyGov and follow the prompts.
If you were getting Child Care Subsidy previously
If you were already getting CCS before April 6 this year, it will automatically start again, if:
- You’re still eligible
- Your enrolment is current and confirmed
What do I need to do now?
You need to follow these five steps before CCS starts again to make sure you’ve stayed eligible and you’re paid the right amount.
- Give Services Australia your 2020-21 family income estimate.
- Check your activity hours.
- Make sure your child is immunised.
- Check your child’s enrolment
- Confirm your income for 2018-19 if you need to.
Just remember, you must confirm your 2018-19 income by June 30, 2020, otherwise your CCS won’t restart again on July 13, 2020.
What about Family Tax Benefit?
Services Australia will start balancing payments for Family Tax Benefit (FTB) payments when the financial year ends. From next month, most families will need to confirm their income, but not everyone has to do the same thing, it depends on your circumstances.
To balance the payments of both FTB and CCS, Services Australia compares how much FTB and CCS you received with how much you’re entitled to. For more information on balancing payments, head to Services Australia.
(Source: Services Australia)
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