Balancing your Centrelink Family Tax Benefit (FTB) and Child Care Subsidy (CCS) is an essential part of the Australian tax time process. Each year, Services Australia reconciles these payments to ensure families receive the correct entitlements based on their actual income for the financial year. This article will guide you through the process, eligibility, key dates, and provide a detailed scheme data table for 2024–25.
What Is Balancing?
Balancing, also known as reconciliation, is the process where Services Australia compares your estimated income with your actual income after the end of the financial year. This ensures you receive the correct amount of FTB and CCS, and any overpayments or underpayments are adjusted accordingly.
Why Is Balancing Important?
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Accuracy: Ensures you are paid the correct amount based on your real income, not just your estimate.
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Compliance: Fulfills your legal and financial obligations to the government.
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Avoid Debts: Prevents unexpected debts if you were overpaid during the year.
Key Dates for 2025
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FTB Balancing Starts: Early July 2025
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CCS Balancing Starts: Mid-August 2025
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Income Confirmation Deadline: 30 June 2026 for the 2024–25 financial year.
What You Need to Do
Step 1: Lodge Your Tax Return
Most families must lodge a tax return with the Australian Taxation Office (ATO). It’s recommended to wait until late July for your income information to pre-fill in myTax, making the process easier and more accurate.
Step 2: Confirm Your Income
If you do not need to lodge a tax return, you must inform Services Australia and confirm your family income online. If you had a partner during the year, their income details are also required.
Step 3: Use the Tax Time Checker
Services Australia provides a tax time checker tool to help families determine their specific requirements for balancing FTB and CCS.
Family Tax Benefit and Child Care Subsidy 2024–25
| Scheme | Maximum Annual Payment | Payment Frequency | Eligibility | Income Threshold (Full Rate) |
|---|---|---|---|---|
| FTB Part A | $6,442.25 per child (0–12) | Fortnightly or annual | Families with children 0–19 (in school) | $65,189 or less |
| FTB Part B | $4,909.36 per family | Fortnightly or annual | Single parents or one-income couples with children under 13 | $6,059 or less for secondary earner |
| Child Care Subsidy | Varies by income and hours | Fortnightly | Families using approved child care, income and activity tested | Income tested |
Balancing Process Explained
How Balancing Works
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Income Comparison: Your estimated income is compared to your actual income for the financial year.
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Adjustment: If you were underpaid, you’ll receive a top-up. If you were overpaid, you may owe a debt.
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Separate Balancing: FTB and CCS are balanced separately, and both require income confirmation for you and your partner (if applicable).
What If You Don’t Lodge a Tax Return?
If you’re not required to lodge a tax return, you must notify Services Australia by submitting a ‘Non-Lodgement Advice’ or a ‘Return Not Necessary’ notice. This is essential for your payments to be balanced and to avoid debts or missed entitlements.
Consequences of Not Confirming Income
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Debts: If your actual income is higher than estimated, you may have to repay some benefits.
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Missed Payments: If you don’t confirm income in time, you could lose out on your entitlements for the year.
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Extensions: In special circumstances, you can request an extension of up to 24 months to confirm income, but it’s not automatic and must be requested.
Eligibility Criteria
Family Tax Benefit (FTB)
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Part A: For families with dependent children aged 0–15, or 16–19 if studying full-time and not receiving other government payments.
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Part B: For single parents or one-income couples with a child under 13.
Child Care Subsidy (CCS)
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For families using approved child care services.
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Payment is based on family income, activity level (hours worked, studied, or volunteered), and type of child care.
Tips for a Smooth Balancing Process
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Check Your Details: Ensure your family income estimates and personal details are up to date with Services Australia.
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Wait for Pre-fill: Wait until late July to lodge your tax return for more accurate pre-filled information.
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Keep Records: Maintain records of your income and child care usage for the year.
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Use Online Services: Confirm income and update details online for faster processing.
FAQs
Q1: When does balancing for FTB and CCS start?
Balancing for FTB starts in early July and for CCS in mid-August each year.
Q2: Do I need to lodge a tax return to balance my payments?
Yes, unless you are not required to lodge, in which case you must notify Services Australia and confirm your income online.
Q3: What happens if I don’t confirm my income?
You may have to repay benefits or miss out on entitlements if you don’t confirm your income by the deadline.
Balancing your Family Tax Benefit and Child Care Subsidy is a crucial annual process to ensure fair and accurate payments. By understanding the steps, deadlines, and eligibility requirements, families can avoid debts and maximize their entitlements. Always keep your income details updated and respond promptly to requests from Services Australia to ensure a smooth balancing process.
Also Read:- Centrelink Child Care Subsidy Deadline: Confirm Family Income Before 30 June 2025
