4.6.1 General Provisions for Individual's Claims & Payments

Introduction

This section contains one topic on the general provisions applying to a person's claim (1.1.C.27) for, and payment of, CCB and covers:

• determining an effective CCB claim,
• conditional entitlement (1.1.E.30),
• notification of payment including CCR,
• payment options,
• approved care (1.1.A.90) lump sum option,
• approved care fee reduction option, and
• payment to a third party.

Determining an effective CCB claim

For a CCB claim to be effective, an applicant should:

• answer all the relevant questions, and
• submit all the relevant supporting documentation (see example).

Example: Residency details.

If any of the information requirements are not met, the applicant will be contacted and asked to provide that information. If the applicant does not provide requested information affecting their:

• eligibility, they do not receive CCB, or
• rate of CCB, they receive CCB at zero rate during the year. Any entitlement will be paid at the end of the income year, after income reconciliation if all the information required is provided, otherwise, the individual remains entitled to only the zero rate of CCB.

Act reference: FA(Admin)Act section 41 Overview

Policy reference: FA Guide 2.6 CCB Eligibility, 3.5 CCB Rate Calculation, 4.6.2 Approved Care CCB - Individual's Claim

Conditional entitlement

Individuals using approved services (1.1.A.90) are granted conditional entitlement once they:

• claim CCB, and
• meet all of the eligibility requirements.

Entitlement is confirmed once the individual's entitlement for that year has been reconciled after the end of the financial year.

Policy reference: FA Guide 2.6 CCB Eligibility, 6.4 Reconciliation

Notification of payment

Individuals will receive notification of details of the following payments:

• registered care (1.1.R.20),
• lump sum approved care,
• reconciliation adjustments to instalments,
• the amount of the person's entitlement to CCB, and
• the amount of the person's entitlement to CCR.

Notification will be sent providing details of the payment to the individual.

Payment options - approved & registered care

An individual using approved services can select the more convenient of the following 2 payment options for CCB, changing between them at any time and as often as they wish:

• child care fee reductions, or
• lump sum.

An individual using registered care can only be paid in arrears, after lodging a claim.

Generally the FAO encourages a family to receive their entitlement as a direct credit payment. If a family is facing special circumstances, however, they can receive their CCB payment by cheque.

Act reference: FA(Admin)Act section 49G Bank account details or statement to be provided for claims by individuals for child care benefit to be effective

Approved care lump sum option

Under the lump sum option, an individual pays their total child care fees throughout the year and then claims reimbursement at the end of the financial year, after lodging their and their partner's tax return, if required to lodge. The claim must include the TFN of the claimant and, where relevant, of any partner (1.1.P.30) the claimant has had during the financial year. The FAO calculates the individual's total CCB entitlement using actual:

• ATI (1.1.A.20) figures provided by the ATO,
• attendance information provided by services in their, weekly Attendance Record Reports (1.1.A.115), and
• total fee reductions received for that child.

The FAO cannot conduct this reconciliation until they have received both the individual's and their partner's modified tax return from the ATO and Attendance Record Reports from all relevant child care services.

Reconciliation for individuals who only used approved child care services commence in August of each year.

Approved care lump sum option individuals who elect to receive the zero rate of CCB only, do not have to provide their TFN to the FAO or have their tax return assessed.

Explanation: Eligibility for the zero rate of CCB does not depend on income.

Individuals who provide their TFNs at a later date will have their CCB entitlement reassessed.

Policy reference: FA Guide 2.6 CCB Eligibility, 4.1.1 TFN Requirements, 4.6.2 Approved Care CCB - Individual's Claim

Approved care fee reduction option

Under the fee reduction option, actual fee reduction payments for CCB are made direct to the service provider following the submission of online weekly Attendance Record Reports. The service provider uses the fee reduction amounts to reduce the child care fees due from the individual. An individual must apply for a CCB% assessment.

Individuals may apply for:

• more than zero rate - these individuals must provide an income estimate and TFN details, or
• zero rate during the year and any entitlement after the end of the financial year - these individuals must provide an income estimate and TFN details, or
• zero rate only - these individuals do not need to provide an income estimate or TFN details.

Policy reference: FA Guide 2.6 CCB Eligibility, 4.6.2 Approved Care CCB - Individual's Claim, 6.4 Reconciliation, 4.6.4 More Choice for Families - CCB, 4.6.4.20 No CCB as Reduced Fees - Any CCB Entitlement at End of Year

Payment to a third party

Payment of CCB to a third party is consistent with payment of FTB and baby bonus to a third party.

In the case of death of a recipient, any amount of CCB owing can be paid to a third party if the Secretary considers that they should be eligible. If the deceased person had a partner, the partner is the most appropriate person to pay. If the person did not have a partner, the payment should be made to the executor of the estate. If an executor has not been appointed, a relative of the deceased person or the new carer of the relevant child(ren) can be paid.

Act reference: FAAct section 46 Eligibility for CCB if a conditionally eligible or eligible individual dies

Policy reference: FA Guide 2.2.2 Death of an Individual Eligible for FTB, 2.6.4 CCB Eligibility - Death of an Eligible Child or Recipient, 4.1.2 Protection of Payment, 4.3.6 Payments to a Third Party

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Last reviewed: 2 July 2012