Tax time is here, and if your family gets the Child Care Subsidy, there’s one extra thing worth knowing about. Each year, once the books close on 30 June, Services Australia balances your CCS - comparing what you were paid with what you were actually entitled to. It sounds more complicated than it is. Here’s the short version.
How CCS works (quick recap)
Your CCS is worked out using an estimate of your family’s annual income. That estimate runs all year - it’s used to figure out how much of your childcare fees are covered by the subsidy. Because it’s an estimate, the number might not be exactly right by the time the year wraps up. That’s what balancing is for.
What happens after 30 June
Once you lodge your tax return, Services Australia picks up your actual income and compares it to what was estimated. Three things can happen:
- They match - nothing changes, you’re good.
- Your income was lower than estimated - you get a top-up, because you were entitled to a bit more subsidy than you got.
- Your income was higher than estimated - you may owe some back, because you got a bit more subsidy than you were entitled to.
This happens to plenty of families, especially if your income changed during the year (going back to work, picking up extra hours, a pay rise, that kind of thing). It’s not a drama; it’s just the system tidying itself up.
What to do right now
There’s not much to it:
- Lodge your tax return when you’re ready after 1 July. That’s what kicks off the balancing. No separate CCS form, no extra steps - your tax lodgement does it automatically.
- If you use a tax agent, give them a heads up so you’re not waiting until October.
- If you’re not required to lodge a tax return, log in to myGov and let Services Australia know. If you don’t do this within 12 months of EOFY, your CCS can be disrupted.
- Jump into myGov and check your income estimate while you’re there. If your situation changed this year and your estimate didn’t keep up, it’s worth knowing what that might mean for your balancing outcome.
What about next year?
While you’re in myGov, it’s worth updating your income estimate for 2026-27 if anything has changed - a new job, different hours, a partner going back to work or stepping back. Keeping your estimate current means fewer surprises at this time next year.
Where to go for help
Services Australia is your best bet for anything specific to your situation:
- Head to servicesaustralia.gov.au/child-care-subsidy for CCS info.
- Log in to myGov to check your estimate and see any correspondence.
- Call the Families line on 136 150.
Our team can help you understand how your care days work with your CCS entitlement, and there’s more info on our CCS page.