Child Care Subsidy (CCS) overpayments arising from reconciliation 007-19022134

Select Process Direct > CCS Reconciliation Dashboard >Enter CRN > Relevant Year to display the latest reconciliation result for CCS.

Reconciliation can result in:

• Arrears
• Debt
• No change

If the Child Care Subsidy (CCS) reconciliation result is an overpayment, see Item 2, otherwise, procedure ends here.

CSS overpayments resulting from reconciliation will be raised automatically in Process Direct and display in DMIS.

• Overpayment reason: field codes:
  • CRC - (Financial Year Assessment)
  • CNL - (Income Tax Return not lodged)
• Start date: equals the first Monday on or after 1 July of the relevant financial year
• End date: equals the first Sunday on or after 30 June of the relevant financial year
• Section act: equals section 71C Family Assistance (Administration) Act
• Source code: = FAOSYS
• Benefit Type: = CCP

Once the CCS overpayment has been ‘DET’ermined, if it is not repaid in full, it will fall in to the debt hierarchy for recovery. See Debt recovery general information.

• A previous debt from CCS reconciliation for the same financial year will be automatically updated on the Debt Management and Information System (DMIS) regardless of its status, and the previous negative adjustment included in the recalculation
• The debt will have a status of CRC in Process Direct and DMIS
• If re-reconciliation results in an existing reconciliation debt being reduced, it may become over-recovered. Any over-recovered amount will be applied to another outstanding debt where appropriate and if any over-recovered amount remains it may be refunded. See Refunding debt payments
• At reconciliation, all undetermined debts relating to income changes CCS for the same financial year will be included. If an undetermined debt relating to a change in income spans two financial years, reconciliation will cover the first financial year,
  • the debt that covers the first financial year will be finalised and will retain the original debt ID
  • the debt that covers the second financial year will remain undetermined and will be given a new debt ID
  • the two debts will remain linked

If the reconciliation (or re-reconciliation) results in a total calculated reconciliation debt less than the small debt waiver threshold, the system will automatically waive the debt as SDW (small debt waiver) and record details on DMIS.

The customer will be sent an automatic reconciliation outcome letter with details of the debt amount and payment options. Procedure ends here.

Australian Taxation Office (ATO) cancels a Notice of Assessment used in CCS reconciliation.

The ATO can cancel a customer/partners Notice of Assessment for a number of reasons.

To identify if a customer/partners Notice of Assessment has been cancelled:

• on the CCS reconciliation dashboard, the latest instance may show Cancelled
• in Customer First, FAO Income for Previous Year (FIPY) will show NA cancelled, noting there may be multiple pages

When a reconciliation recalculation results in a debt and the ATO cancels the Notice of Assessment after the CCS reconciliation/recalculation is finalised and the date is:

• prior to the 1st deadline, withholdings for the debt will end
• after the 1^st deadline, the debt recovery process will automatically commence for ‘family income not confirmed’, this means all CCS paid for the relevant year being reconciled will be raised as a debt and recovered at the 2nd deadline if the ATO has not provided updated income information
• when new income details are received from ATO, CCS re-reconciliation occurs, the CCS debt is re-calculated based on the new calculation (this could mean the debt is either removed, reduced or increased)

If a customer contacts about the ATO cancelling their (or their partner/ex-partners) notice of assessment, ask them to contact the ATO to find out more information. The customer should not attempt to lodge their tax return again.

If the customer has been told by the ATO that the Notice of Assessment has been reassessed, and an initial reconciliation or re-reconciliation has not occurred manually, request the income details from the ATO:

• Use Fast Note - select Auto Text, use > Families > Enquiry > ATO income details required
• Complete the required fields to send a request to the ATO Liaison Team (TAP) for action

The Fast Note will add the keyword ACTTAP.

Tell the customer the required information will be obtained from the ATO. The outstanding assessment should be finalised within 10 working days.

Customers can go online to check if reconciliation has completed. Check if the customer wants to register for self service online.

Procedure ends here.