Child Care Subsidy (CCS) payments and adjustments 007-17103124

In most circumstances, CCS is generally paid directly to the provider and applied as a fee reduction to customer's fees. The customer (or their partner) needs to meet eligibility requirements for CCS for their entitlement to be determined.

In some circumstances, CCS arrears will be paid directly to the customer's nominated bank account. This can occur before or after reconciliation has occurred for the relevant year. Where reconciliation has already occurred for the relevant year, any subsequent arrears/top-up may be:

• paid to the customer, or
• used to recover any child care debts

See the Resources page for examples on how CCS can be paid.

In most circumstances, ACCS is paid directly to the childcare provider as fee reduction on behalf of the customer. From 12 July 2021, where a customer is eligible for any ACCS payments, all entitlement including their CCS entitlement will be paid directly to the child care provider when:

• reconciliation has not occurred for the customer for the relevant CCS year, and the first or second deadline has not passed, and
• the customer had a current complying written arrangement (CWA) for the period of payment, and
• ACCS entitlement has been approved

If a customer's ACCS is granted for a backdated period and they have met reconciliation conditions for that period, any arrears will be paid directly to the customer.

See the Resources page for examples on how ACCS can be paid.

Payment of CCS to the child care service is triggered by the lodgement of an attendance report.

In certain circumstances, ICT will place a payment lock on CCS arrears payable to a customer to prevent payments being made to a customer's nominated bank account. If a payment lock is:

• in place, it will display on the Payment Destination Summary (PAS) screen in Process Direct
• lifted, it will no longer display on the PAS screen

CCS arrears will have a payment lock applied if:

• a change circumstances (CoC) reassessment for a customer results in arrears over $10,000 (before debt offsetting has occurred), or
• a system update/issue requires ICT to place a payment lock on a customer's record to investigate arrears less than $10,000

The payment lock process allows the arrears payable to be checked before being released to the customer's nominated bank account.