Search this site

Tips for searching this siteSearch documents

Making payments

Figure 4: Steps in the payment and recovery process
Flow diagram of the payment and recovery process— submission of session reports, passing on a payment, statements and end of year reconciliation.

When will payments be made?

Providers can submit session reports at any time during the week using their child care software or the PEP. Receipt of each report will be acknowledged.

Payment will be processed at 9.00 am (AEST) each Monday morning for sessions of care that occurred in the previous week and which have been reported before 9.00 pm (AEST) on the Sunday evening.

A session of care must only be reported once. For example, a report could be submitted on Wednesday evening for sessions of care that occurred on Monday through to Wednesday and a subsequent report could be submitted on Friday for sessions of care that occurred on Thursday and Friday.

Session reports submitted after 9.00 pm (AEST) on the Sunday will be processed and paid as they are submitted (but after the Monday morning weekly processing has been completed).

Table 8: When session reports need to be submitted to receive payment

Session report received

Payment processed

Before 9.00 pm (AEST) on Sunday for care provided in the previous week

The following Monday morning

After 9.00 pm (AEST) on Sunday for care provided in the previous or earlier weeks

Upon receipt

If a session report is varied (up until 28 days after the start of the week to which the report relates), payment adjustments will be processed and paid when the variation is submitted.

Once a session report has been processed, the determination of entitlement will be available through the provider's child care software or the PEP and the payment advice will be issued.

How are payments received?

To receive Child Care Subsidy payments on behalf of families for a given week, the provider must have current provider and service approvals and have submitted an enrolment and a session report for the eligible children.

Payments are made directly into the provider's nominated bank account, and providers will receive a payment advice with details of decisions about (determinations of) entitlements, calculations and payments.

What notification is given of the payment?

When a session report has been processed and a determination of entitlement made, the provider will receive a notification of the payment. This payment advice will be sent at the same time as the payment is dispatched and will indicate:

  • calculation and determination of entitlement
  • offsets (amounts taken as payment towards a debt owed) and withholding amounts
  • total payments to be made to the provider
  • any payments being made direct to the individual.

Providers can also view the entitlements that have been calculated for each child through their child care software or the PEP at any time.

Are any payments made to families?

Child Care Subsidy and Additional Child Care Subsidy are paid to providers to pass on to parents as a fee reduction. However, there are circumstances where Child Care Subsidy or Additional Child Care Subsidy is paid to parents.

In most cases families establish their eligibility and entitlement to Child Care Subsidy with Centrelink before their children start attending child care. In these circumstances Child Care Subsidy is paid to providers to pass on to families as a fee reduction from the outset. The department expects providers will charge the parent based on the eligibility and entitlement details available at that time.

The department does not recommend that providers invoice families using estimates of fee reduction before Child Care Subsidy eligibility and entitlement is confirmed. This is because the actual amount of Child Care Subsidy paid (if any) may vary for a range of reasons.

Where care is provided before the parent has had their eligibility and entitlement assessed, any backdated Child Care Subsidy amounts are paid directly to the parent once Centrelink confirms their eligibility. This is because it is expected they will have already paid full child care fees to their provider for this period. Subsequent subsidy amounts will be paid to the provider.

If the service decides to not charge the family full fees while the family's entitlement to Child Care Subsidy is being assessed, the service is responsible for recovering any unpaid amounts from the family.

Direct payments to parents can also occur when changes in circumstances directly affect the family's entitlement to Child Care Subsidy.