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CCBUpdate on CCB Over Advances
By the Community Child Care Co-operative

Has your service received a letter from the Department of Education, Employment and Workplace Relations (DEEWR) about over advances of Child Care Benefit (CCB) quarterly advance payments which occurred when you transitioned to the Child Care Management System (CCMS)? The Community Child Care Co-operative is aware that some services are concerned about this letter.

Why the debt?
Prior to the introduction of the CCMS, CCB fee reduction was provided quarterly in advance to services. You then were required to provide statements of families' child care usage to the Family Assistance Office (FAO) and any overpayments or underpayments were recovered from subsequent quarterly advances.

When services transitioned to CCMS there were no longer quarterly advance payments which could be used to acquit over advances from previous quarterly payments. As such, services who received over advances from their last quarterly payments under the old system, owe money to the Commonwealth. As many services transitioned at the beginning of the year when numbers are often down, some services may owe significant amounts.

How do you pay it back?
DEEWR will deduct it weekly from your CCB payments over a 12 month period. The letter they have sent you tells you the total amount you owe, how much will be taken out each week and the date they will start taking it out from.

What you have to do if you get an over advance:
  1. Respond to the letter from DEEWR within 21 days from when you receive it.

  2. Community Child Care recommends you check the amount DEEWR has calculated. You can do this by comparing the over advance amount shown on the Statement Acquittal Report for the particular period with what is on your letter. Remember to use the LAST supplementary report if you have sent supplementary claims in for that period.

  3. Adjust your budget for the next 12 months to take into account the debt.

  4. If your debt is very large and you have not previously reconciled your CCB under the old system it may be worthwhile asking your accountant to do this – you may discover your debt can be reduced.
More questions? Contact the CCMS Recovery Team on 1800 306 182 or email them at COSoveradvances@deewr.gov.au

Our thanks to Community Child Care Co-operative for contributing this article.
 
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