EOFY CCS Checklist: What to Do Before and After 30 June
End of financial year is the most consequential time in the CCS calendar. The income estimate you have been using all year gets compared to your actual income. Subsidy overpayments become debts. Underpayments become top-ups. And families who have done nothing wrong — but had an income change they didn't fully account for — can find themselves owing thousands of dollars.
This guide walks through what to do before 30 June, what to do after, and how to set yourself up well for the new financial year. Each item explains why it matters, not just what to do.
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Part 1: Before 30 June
1. Review your income estimate one more time
Your income estimate is the single most important variable in your CCS. If your actual income for the year ends up higher than your estimate, you will owe the difference back. If lower, you will receive a top-up.
In the final weeks of the financial year, you have enough information to make an accurate estimate. You know what you have already earned, and you can project the remaining weeks.
What to check:
- Your and your partner's salary and wages year to date (from payslips)
- Any bonuses or commission received since your last update
- Rental income received
- Dividends and managed fund distributions (especially if your fund makes a June distribution — common for ETF and managed fund holders)
- Reportable fringe benefits on your income statement (check with your employer or payroll)
- Any capital gains realised during the year (shares sold, investment property sold)
If your projection suggests your actual ATI will be materially higher than your current estimate, update it now. Every week between now and 30 June that runs on an accurate estimate is a week that does not contribute to a potential debt.
See How Income Estimates Affect Your CCS and How to Change Your CCS Income Estimate Without Debt.
2. Check for investment income you may have overlooked
This is the most common source of surprise EOFY debt.
Rental income is included in ATI net of expenses — but it must be included. If you own a rental property and have not updated your estimate to include the net rental income, you are likely underpaying.
Dividends and managed fund distributions are included in ATI in the year they are paid. Many ETF and managed fund holders receive a June distribution that lands in the same financial year as most of their wages — adding a lump of income that many families forget to account for.
Capital gains are included in ATI in the year the asset is sold. If you sold shares or an investment property during the year, the capital gain (net of any CGT discount) is included in your ATI.
Reportable fringe benefits from salary packaging — including EV novated leases — are added back to ATI. This catches many families off-guard. See EV Novated Lease: Impact on CCS.
3. Review your withholding rate
By default, Centrelink withholds 5% of your CCS each fortnight as a buffer against balancing debts. This means you pay a slightly higher gap throughout the year — but your balancing exposure is reduced.
If you are confident your estimate is accurate, you might consider reducing withholding. If you suspect you may have underestimated, keeping withholding at 5% (or increasing it to 10% or 15%) reduces your balancing debt.
You can review and change your withholding rate in myGov under Child Care Subsidy settings.
See CCS Withholding Explained.
4. Confirm activity hours are current
If your work or study situation has changed during the year and you have not updated your activity details, fix this before 30 June. An outdated activity record can affect your entitlement assessment for any period it was on file.
The 3 Day Guarantee means most families are insulated from activity test changes — 72 hours is the floor. But if you are accessing 100 hours and your activity has changed, this matters.
5. Check your partner's details too
Both partners' income and activity details matter. A salary increase your partner received in November that was never updated will show up at balancing. Make sure both records are current before 30 June.
Part 2: After 30 June
1. Lodge your tax return — and prompt your partner to do the same
CCS balancing cannot occur until both partners' tax returns have been lodged and processed by the ATO. The earlier you lodge, the earlier balancing occurs, and the earlier any top-up is paid or any debt is confirmed.
You do not need to wait until the ATO's October deadline. Most families can lodge through myTax from mid-July once their income statement is marked "tax ready" by their employer.
2. Monitor your myGov inbox for the balancing notice
Once both returns are processed, Centrelink reconciles the year and sends a balancing notice to your myGov inbox. This notice will tell you:
- Whether your actual income was higher or lower than your estimate
- Whether you owe money or are receiving a top-up
- How much
- The payment or repayment timeline
3. If you have a debt, review payment options
A CCS balancing debt does not need to be paid immediately in full. Centrelink can arrange a repayment plan if the amount is significant. Contact Centrelink on 136 150 to discuss your options.
Before paying, check that the income figures used in the balancing assessment are correct. Errors do occur — particularly if your partner's return was processed with incorrect figures, or if reportable fringe benefits were double-counted. If the assessment looks wrong, contact Centrelink before arranging payment.
4. If FTB is also affected, review both adjustments together
CCS and Family Tax Benefit balancing are separate processes but often arrive around the same time. If your income was significantly different from your estimate, both may be adjusted. Review both outcomes together to understand your full financial position.
Part 3: New financial year setup
Once the new financial year begins, set a fresh income estimate before care continues:
- Set a new income estimate for the new year based on your expected ATI. Do not let the old year's estimate carry forward unchanged — it may no longer reflect your actual income.
- Confirm or update childcare enrolments if your child is starting at a new service or changing days.
- Check updated CCS income thresholds — the income test parameters can change from year to year. Check the new year's thresholds to understand your expected CCS percentage.
- Review your withholding rate — if you had a large debt or top-up, reconsider whether your default 5% withholding is appropriate for the new year.
Complete checklist
Before 30 June:
- Project full-year ATI and update income estimate if it has drifted
- Check for investment income, dividends, capital gains, and fringe benefits
- Review withholding rate if you suspect underpayment of subsidy
- Confirm activity hours are accurate in myGov
- Check partner's income and activity details are also current
After 30 June:
- Lodge tax return (and prompt partner to do the same)
- Monitor myGov inbox for balancing notification
- Review balancing outcome and check the figures are correct
- If debt: review payment options and contact Centrelink if needed
- If FTB also affected: review both adjustments together
New financial year:
- Set new income estimate for the new year
- Confirm or update childcare enrolments
- Check updated CCS income thresholds
- Review withholding rate for the new year
Frequently Asked Questions
I lodged my tax return in July but haven't received a balancing notice. How long should I wait?
Balancing requires both partners' returns to be processed and data shared with Centrelink. If your partner has not yet lodged, that is the bottleneck. If both returns have been lodged, allow four to six weeks. If it has been longer than eight weeks since both returns were processed and you have heard nothing, contact Centrelink on 136 150.
Can I lodge a tax return for CCS balancing before the ATO deadline?
Yes. There is no requirement to wait for the ATO's October lodgement deadline. You can lodge through myTax or a registered tax agent as soon as you have the information needed. Lodging in July or August typically produces balancing outcomes in August or September.
My balancing notice says I owe money but I updated my income estimate during the year. Why do I still have a debt?
Updating your estimate limits how much overpayment accumulates after the update date, but it does not recalculate past payments. If your income was underestimated for any period during the year — even weeks before you updated — those weeks will reflect a higher CCS rate than you were actually entitled to, and the difference is settled at balancing. See How to Change Your CCS Income Estimate Without Debt.
When does the FTB supplement get paid?
The FTB Part A and Part B supplements are paid as a lump sum after your tax return is lodged and Centrelink completes reconciliation — typically four to six weeks after both partners' returns are processed. For most families who lodge in July or August, this means the supplement arrives in August or September.
Can I estimate what my balancing outcome will be before the notice arrives?
Yes. Compare your actual year-to-date ATI (from your income statement or payslips) to the estimate Centrelink has on file. The difference, applied to your total CCS payments for the year, gives you a rough sense of exposure. The CCS Checker's Year Impact Planner is designed to model this more precisely.
This is general guidance only. For personalised advice, contact Services Australia at 136 150 or visit servicesaustralia.gov.au/child-care-subsidy.