Child Care Benefit (CCB) overpayments arising from reconciliation and lump sum claims 107-04100020

A debt may result due to:

• Child Care Benefit (CCB) reconciliation
• re-reconciliation, or
• CCB lump sum claim recalculation

A Child Care Rebate (CCR) entitlement is calculated during CCB reconciliation or lump sum claim. It may be used to offset a CCB reconciliation overpayment. A CCR debt is separate to CCB.

Debt offsetting during family assistance reassessment, reconciliation and claim processing may reduce or totally offset the overpayment.

Did the customer have an existing CCF or CCR debt in the same financial year?

• Yes, go to Step 2
• No, go to Step 3

Existing CCF or CCR debts at reconciliation for the same financial year:

• the Debt Management and Information System (DMIS) will update and include any other debts in the recalculation
• the debt will have a status of F-Reco (Finalised included in reconciliation) on DMIS. A re-reconciliation can adjust the amount owed on a reconciliation debt. In some cases this can result in an over recovered debt. A Manual Follow up (MFU) activity will appear on the Activity List (AL) screen. See Refunding debt repayments
• at reconciliation, undetermined debts relating to CCF or CCR for the same financial year are finalised. All outstanding activities related to the debt will complete. Undetermined DMIS debt covering two financial years with reconciliation covering the first year:
• the debt covering the first financial year will be finalised and will retain the original debt ID
• the debt covering the second financial year remains undetermined. It will have a new debt ID
• the two debts will remain linked

• Overpayment reason field codes:
• 'FRC' - (FA Reconciliation)
• 'FRA' - (FA Information received from ATO), or
• 'FRR' - (FA Re-reconciliation)
• Start date field. This field equals the first Monday on or after 1 July of the relevant financial year
• End date field. This field equals the first Sunday on or after 30 June of the relevant financial year
• Section act field equals section 71C Family Assistance (Administration) Act
• Source code field = 'FAOSYS'
• Benefit Type: 'CCF'

• Yes, the system will waive debt and record details on DMIS. No letter will issue. Go to Step 6
• No, go to Step 5

The system will send a letter detailing the debt amount to the customer. Go to Step 6

For a deceased customer:

• send a Q417 letter (Initial Account including statement of recoverable amount)
• address the letter to 'The Executor of the Estate of the late (deceased's name)'
• Payment Assurance Operations will take over recovery action

If the ATO cancels the Notice of Assessment after the CCB reconciliation/recalculation is finalised, withholdings will end.

When the ATO sends new income details, re-reconciliation or lump sum claim recalculation occurs. CCF and/or CCR debt also finalises on DMIS and will include any previous debt amount.