Combined family income for Child Care Subsidy (CCS) 007-17103114

CCS is an income tested payment, families need to provide an income estimate for each financial year. The amount of CCS a family can get may change as their income changes. The combined family income is used to work out the percentage of CCS.

During the year, a family's CCS percentage is based on estimated annual income. This is known as an estimated Adjusted Taxable Income (ATI).

It is the same income estimate used to assess entitlement for other Family Assistance payments, such as Family Tax Benefit (FTB). The income estimate must reflect the financial circumstances of the customer (and their partner, if they have one) for the entire financial year.

All customers are required to provide an income estimate for CCS, regardless of their income support status.

It is important that families estimate their annual family income as accurately as possible to receive their correct rate of CCS through the year and reduce the risk of being overpaid.

Families should check their estimated income regularly and update it as soon as their circumstances change.

Different reconciliation processing applies for ex-partners for Child Care Subsidy (CCS) for the 2018/19 year and from the 2019/20 year onwards. This also applies to if a customer or partner dies. See Reconciliation of Child Care Subsidy (CCS) for more details.

A checking process occurs after the end of the financial year, where the amount of CCS a family has received throughout the year will be checked against the amount that they should have received based on their actual family income. This process is known as payment balancing or reconciliation.

CCS is reconciled at the end of the relevant financial year. The customer's correct CCS rate is worked out using:

• actual income details transferred from the Australian Taxation Office, and
• child care attendance details provided by the child care provider during the financial year

Families can reduce the risk of overpayment during reconciliation by providing an accurate income estimate. To assist customers reduce the risk of an overpayment throughout the year a CCS withholding percentage will apply.