June 30 marks the end of the financial year, and for families receiving the Child Care Subsidy, it’s also when Services Australia begins balancing your CCS. The process is more straightforward than it sounds, and if you follow a few clear steps now, you’ll have everything sorted before the new year gets underway.
Why the end of financial year matters for your CCS
CCS is calculated based on your family’s estimated annual income. That estimate is used all year to determine how much subsidy is applied to your childcare fees. After 30 June, Services Australia compares that estimate with your actual income - confirmed through your tax return - to determine your final entitlement for the year. This is called CCS balancing, and it happens every year.
What the balancing process can mean for your family
Depending on how closely your income estimate matched reality, you may see one of three outcomes:
- No change: Your estimated income was accurate and no adjustment is needed.
- A top-up payment: Your actual income was lower than estimated, meaning you were entitled to a higher subsidy rate. Services Australia will pay the difference.
- A debt: Your actual income was higher than estimated, meaning you received more CCS than you were entitled to. You’ll be asked to repay the difference.
Common reasons for a difference include returning to work after parental leave, a salary increase, a change in working hours, or a variation in your partner’s income.
Your EOFY CCS checklist
Step 1 - Log in to myGov and review your income estimate. If your circumstances changed during 2025–26 and your estimate didn’t reflect that, now is a good time to understand what your balancing outcome might look like.
Step 2 - Lodge your tax return as soon as you’re ready after 1 July. CCS balancing is triggered automatically once both partners (where applicable) have lodged with the ATO - there’s no separate CCS form to complete.
Step 3 - If you’re not required to lodge a tax return, confirm this with Services Australia through myGov. This step is important: if neither partner lodges or confirms within 12 months of EOFY, your ongoing CCS can be affected.
Step 4 - Check myGov for your balancing outcome. Services Australia will send correspondence when balancing is complete. Review it, and contact them directly if you have questions or need help managing a repayment.
Keeping your CCS accurate in 2026–27
The end of financial year is a good moment to think about the year ahead. If your family’s income is changing - a new job, a reduction in hours, a partner moving in or out of the workforce - update your income estimate in myGov early. A current estimate means a smaller gap at next year’s balancing.
Our CCS page has more detail on how the subsidy works for Kids Academy families, and our team is happy to help you understand how your care arrangement interacts with your entitlements.
For your specific CCS situation, contact Services Australia directly:
- Visit servicesaustralia.gov.au/child-care-subsidy for CCS information and balancing guidance.
- Log in to myGov to manage your estimate and review correspondence.
- Call the Families line on 136 150.