4.7.2 CCB Payment of Advances to Approved Services

Note: This section does not apply to services that have commenced operating under CCMS.

Summary

This section contains one topic on payment of CCB advances to approved services (1.1.A.90), and covers:

• quarterly advances to approved services,
• advances for LDC, FDC, and occasional care, and
• advances for OSHC and vacation care.

Policy reference: FA Guide 1.1.T.70 Types of care (CCB)

Quarterly advances to approved services

Approved services with families opting to receive their CCB entitlement in the form of reduced child care fees will receive quarterly advances from the FAO, paid monthly by direct credit. The FAO will produce a payment advice for the service outlining the amount of CCB to be paid. Advances to a service are based on the acquitted level of the service's statement for payment that was submitted 2 statements before the quarter or term for which payment is to be made.

Example: The advance for the July quarter is based on the statement for payment that the service submitted for the January quarter.

Exception: Vacation care advances are based on the average daily usage for the term break immediately before the advance.

If the acquittal process indicates that the:

• FAO owes the service money for the statement period, the service is paid an adjustment, or
• service owes the FAO money, the amount owing is subtracted from the service's advance for the next period (see example).
• Example: If the acquittal of the advance for the July-September quarter shows the service owes the FAO $500, this amount is subtracted from the advance for the January-March quarter.

Advances for LDC, FDC & occasional care

For LDC, FDC and occasional care, quarterly advances are paid in 3 monthly instalments on the first day of each month.

Exception: January payments are made in mid-December to avoid possible disruption during the Christmas-New Year period.

Example: The following table shows how the advance for the January to March 2001 quarter will be paid.

Advances for OSHC & vacation care

For OSHC care and vacation care, quarterly advances are based on a 4 term cycle. Payments are made for each of the terms or vacation break. OSHC providers' quarterly advances are split into 3 monthly payments. Vacation care services receive only a single payment, comprising 100% of their advance for the vacation period, paid on the first day of the period.

Exception: Tasmania has 3 terms instead of 4. They only have 3 statement periods per year for payment and advances.

Example 1: The following table shows how the advance for the first term of 2001 to an OSHC service will be paid.

Example 2: The following table shows how the advances for 2001 will be paid to a vacation care service.

Act reference: FA(Admin)Act Part 8A Division 2 Advances to approved child care services

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Last reviewed: 2 January 2009