CCR - how does it work now that they will pay directly to the centre????

[AnyDream]

They are going to withhold 15% of the normal rebate amount, which will then be reconciled at the end of the tax year. So, according to my DIY accounting, I'm expecting to pay 57.5% of what I would normally pay (because 15% of 50% is 7.5%). So I've paid the FDC lady 57.5% of the usual amount and we'll see how good my accounting was when she gets her paperwork back from the office.

[Miss E]

Thanks MD, I hadn't come across that one.

[briggsy's girl]

Someone pm me after 6 tonight to remind me to come back to this

[Floweryfields]

I'm a director - from what I can understand, one I've submitted and retrieved after the changes come in, the CCR will then apply to accounts. If I issue statements in advance and I haven't submitted and retrieved, then the CCR amount will not show up on the statements yet.

So last week, it didn't show for those families, but today, after retrieving last weeks usages, it is showing the CCR amount for these families.

[briggsy's girl]

ok, i back!

as ausgirl has said, the first week of the year (fortnight for some centres) there was no CCR on the statements as it's not paid in advance. any bill you get for child care paid before it's used has an estimate for CCB - if your circumstances change, you may end up having received too little or too much CCB in that week and your centre will generally adjust the bill once they have submitted usage and confirmed your entitlement

CCR is paid in arrears - AFTER you've used it. so child care centres will only get confirmation of the details after you've used the care. each centre is going to have their own protocol on how they administer this - some may charge you for your position at the centre in advance (so today july 12 they make you pay next weeks care - july 18-22). the same bill may include CCR from two weeks ago (so july 4-8)
then each week, your ccb would be charged for the next week, your ccr would be for the arrears period

others, because CCR is set up for the full financial year) may estimate CCR entitlement along with CCB for the weeks in advance - and any CCR you've missed the past couple of weeks will become a credit on your account towards the out of pocket expenses you have

does that make sense?

[Astrid]

I did the same as you MaryDean. Calculated the difference myself and paid that. Not sure when my centre will be submitting, so it will be interesting to see how it comes out.

ETA: BG - yep that makes sense, but is kind of messy. Hopefully once all flowing in and out of the accounts, what we have to pay will be clear.

[briggsy's girl]

yeah hopefully it won't be too long before it all makes more sense

unfortunately (fortunately?) i don't use child care, so i'm only being exposed to everything from a "put it in place" side of things, not a "this is how it will be implemented" side of things

oh and yeah, MD, you're right about the calculations! i haven't been telling customers we'll hold 15% of their entitlement back - just saying 42.5% of out of pockets will be paid to child care, 7.5% held til tax time. i don't like telling people they get 50% but 15% of THAT held back. it's easier to make it black and white (and i haven't had anyone say wtf? to me yet lol)

[Mum2SweetCs]

BG, I changed my CCR to directly debit from my current fees but I cannot find anywhere on the family assist website that says what my childcare frequency is? it tells me to call a number.

I am sure I changed it, should I be getting a confirmation?

I talked to my childcare director but they havent heard anything yet (do they have to chase it up or I do?)

I dont get CCB (ie its 0%), so does that mean its just simply 50% off my current fees?

Thanks

[AnyDream]

yeah hopefully it won't be too long before it all makes more sense

unfortunately (fortunately?) i don't use child care, so i'm only being exposed to everything from a "put it in place" side of things, not a "this is how it will be implemented" side of things

oh and yeah, MD, you're right about the calculations! i haven't been telling customers we'll hold 15% of their entitlement back - just saying 42.5% of out of pockets will be paid to child care, 7.5% held til tax time. i don't like telling people they get 50% but 15% of THAT held back. it's easier to make it black and white (and i haven't had anyone say wtf? to me yet lol)

So...at tax time, when I've paid the centre that extra 7.5% all year, I'm assuming that those funds will be returned to me via some kind of centrelink reconciliation process?