Approved Care - Payment Options
If you use approved care, you can choose to receive your Child Care Benefit the following ways:
Payment Options
- All of your Child Care Benefit as reduced fees - your Child Care Benefit will be paid to your child care service, who will pass it to you in the form of fee reductions so you pay less in fees.
This may suit you best if your family income is stable and unlikely to change. - Lump sum - you will pay full child care fees to your child care service during the year and after the end of the income year you may make a claim for Child Care Benefit as a lump sum.
Note: You must claim Child Care Benefit as reduced fees if you want to receive your Child Care Tax Rebate as a quarterly payment even if you are assessed at the zero rate of Child Care Benefit. If you choose to receive your Child Care Benefit as a lump sum payment, any Child Care Tax Rebate will also be paid as a lump sum at the end of that year.
Approved Care - Payment options to reduce the risk of an overpayment
There are three options to reduce the risk of an overpayment of Child Care Benefit, as determined after the end of the financial year. Selecting a payment option will help you to reduce or recover any potential overpayment. You can change your payment option at any time during the financial year.- Receive a zero rate of Child Care Benefit and any entitlement at the end of the financial year.
You can choose to receive a zero rate of Child Care Benefit throughout the year and be assessed for any entitlement after the end of the financial year. You must lodge an income tax return before you can be paid.
This might suit you best if your family has a medium to high income and your income is likely to increase. - Adjusting your future Child Care Benefit percentage to recover or reduce any potential overpayment
This is a good idea if your family income increases during the year. We can check if you have already been paid too much, and adjust your Child Care Benefit percentage for the rest of the year, to recover or reduce the risk of overpayment. - Rounding your Child Care Benefit percentage
This choice is available to you if you receive your Child Care Benefit as reduced fees
Contact us to discuss the options or request a claim form.
See also: Reduce your risk of being overpaid
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