Child Care Subsidy (CCS) withholdings 007-17103126

Does the customer only have child care related debt(s), and is only receiving CCS payments?

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

Tell the customer:

• the standard debt recovery rate (20% of the weekly CCS entitlement) will automatically commence from their CCS entitlement, and
• as a lower amount of subsidy will be paid directly to their child care provider, the customer will have higher out-of-pocket fees for child care

If the customer:

• requests a change to the standard 20% CCS debt recovery rate, see Recovering Child Care Subsidy (CCS) debts in Process Direct, and/or
• has a voluntary debt repayment arrangement, go to Step 4

Otherwise, procedure ends here.

If the customer is:

• not current on any payment, explain they will need to enter into a voluntary debt repayment arrangement. If they do not, they will accrue interest on the debt. See Arranging cash repayments to recover debts
• current on a Families payment or other Income Support Payment, explain that automatic deductions will be withheld from their other payment. They will receive a letter to advise when repayments will start

Procedure ends here.

Tell the customer:

• their voluntary arrangement amount will be in addition to the standard 20% recovery rate
• the 20% recovery rate will be automatically withheld from their CCS entitlement and the voluntary arrangement amount will continue, and
• they can cancel their voluntary arrangement if they chose to, while repayment is being recovered from their CCS entitlement

Note: customers who use child care intermittently will be charged interest if no debt repayments are made. For example, children using vacation care only or the customer is CCS/CUR-CZR.

Does the customer want to cease the voluntary debt repayment arrangement?

• Yes, tell the customer they can cancel their voluntary arrangement via the:
• Money you owe service accessible from their Centrelink online account. Use the quick code > QC 41761, or
• the Express Plus Centrelink mobile app. Use the quick code > QC 41736
• No, DOC outcome of discussion. Procedure ends here

Make sure the customer understands the impact of increasing their nominal withholding amount.

Read the following script to the customer:

By increasing your CCS nominal withholding percentage you understand that a lower amount of subsidy will paid be directly to your child care provider and you will have higher out-of-pocket fees. You understand that amounts withheld will be used to reduce any overpayment you may receive during the financial year. You also understand that you cannot access any of the withheld amount until your payments are balanced at the end of the financial year and any amount remaining will be paid directly to you.

If the customer understands the impact and would like to proceed:

• Go to the Withholdings (NWH) screen. End date any existing entry one day before the new withholding entry
• Select Add
• Key Start Date (cannot be a past date)
• Key End date - this is a mandatory field. Record an end date where the customer nominates one, or 31/12/9999
• Key the customer nominated withholding amount
• Select a reason for the update from the drop down menu:
• Declaration of unsteady employment income, high variable income
• Substantial increase in estimated annual income
• Threshold at which the annual cap applies or the upper income threshold
• Accumulated withholdings was reduced or exhausted to offset an overpayment
• Declaration of steady employment arrangement, work hours and income
• Substantial decrease in estimated annual income
• Other
• Select Assess
• Select Finalise
• Record notes on the customer record including the (start and end dates, requested withholding amount. Copy and paste the above declaration which the customer agreed to into the notes, including a reason for the change)

Read the following script to the customer

Withholding some of your Child Care Subsidy is important as it helps reduce the likelihood of you getting a debt at the end of the financial year when we balance your payment. If you reduce the amount that we are withholding you understand you increase the likelihood of receiving an overpayment at the end of the financial year. Do you understand that any Child Care Subsidy you have been overpaid will be raised as a debt when your payments are balanced after the end of the financial year.

If the customer understands the impact and would like to proceed:

• Go to the Withholdings (NWH) screen. End date any existing entry one day before the new withholding entry
• Select Add
• Key Start Date (cannot be a past date)
• Key End date - this is a mandatory field. Record an end date where the customer nominates one, or 31/12/9999
• Key the customer nominated withholding amount
• Select a reason for the update from the drop down menu:
• Declaration of unsteady employment income, high variable income
• Substantial increase in estimated annual income
• Threshold at which the annual cap applies or the upper income threshold
• Accumulated withholdings was reduced or exhausted to offset an overpayment
• Declaration of steady employment arrangement, work hours and income
• Substantial decrease in estimated annual income
• Other
• Select Assess
• Select Finalise
• Record notes on the customer record including the (start and end dates, requested withholding amount. Copy and paste the above declaration which the customer agreed to into the notes, including a reason for the change)