More than 240,000 families receive the Child Care Subsidy through Centrelink and some may have found their payments recently stopped due to a crucial administrative requirement that many Australian families overlooked. The suspension of this popular payment has created significant financial stress for thousands of households across the country, with many parents now facing the prospect of paying full childcare fees.
The payment disruption stems from a key deadline recipients had to meet last week, specifically the June 30, 2025 income confirmation requirement. This annual process, while routine for government agencies, has caught many families off-guard, resulting in immediate financial consequences that could impact household budgets for weeks or months to come.
Understanding the Income Confirmation Requirement
If you received the Child Care Subsidy in the 2023-24 financial year and didn’t confirm your family’s income by June 30, your payments would have stopped. This confirmation process is not merely a bureaucratic formality—it’s a critical step that ensures families continue receiving the financial support they’re entitled to for childcare expenses.
The income confirmation process serves multiple purposes within the Centrelink system. It allows Services Australia to accurately calculate subsidy rates based on actual family income rather than estimates, ensures compliance with eligibility requirements, and helps prevent overpayments that could result in future debt recovery actions.
From July 7, your Child Care Subsidy will have reduced to 0 per cent, meaning affected families are now responsible for paying the full cost of childcare services. For many families, this represents a sudden increase of hundreds or even thousands of dollars in weekly expenses, creating an immediate financial crisis.
The Scope of the Problem
The scale of this issue extends beyond just the Child Care Subsidy. Over 400,000 Australian families must confirm their income with Centrelink before 30 June to avoid losing payments, with more than 170,000 families receiving FTB and 240,000 on CCS have not yet confirmed their income at the time warnings were issued.
This represents a significant portion of Australian families who rely on government assistance to manage childcare costs and family expenses. The Child Care Subsidy alone supports hundreds of thousands of working families, enabling parents to maintain employment while ensuring their children receive quality care and early education.
The Family Tax Benefit component of this issue adds another layer of complexity, as families who do not confirm their income may lose top-up payments, yearly supplements or even face repayment demands. This multi-faceted impact means some families could face both immediate payment suspensions and future debt obligations.
Immediate Steps to Restore Payments
For families currently experiencing suspended payments, Services Australia said recipients needed to confirm their family income for the 2023-24 income year now so that it can start paying them again. The restoration process is designed to be straightforward, but it requires prompt action from affected families.
“You can confirm your income online by lodging a tax return or telling us you don’t need to. If you had a partner at any time during 2023-24, they need to do this too.” This requirement extends to both members of a couple, ensuring that all household income is accurately reported and assessed.
For families who don’t need to lodge a tax return, the process is even simpler. If you don’t need to lodge a tax return, you can confirm your family income by advising Services Australia that you’re not required to lodge, using your Centrelink online account through myGov or the Express Plus Centrelink app.
How to Confirm Your Income Status
The confirmation process varies depending on individual tax obligations. Families required to lodge tax returns must complete this process through the Australian Taxation Office, either independently or through a registered tax agent. Once the return is lodged, the information automatically flows through to Services Australia systems.
For families not required to lodge a tax return, the process can be completed entirely through Centrelink’s digital platforms. The myGov website provides a secure portal where families can access their Centrelink accounts and complete the income confirmation process in minutes.
The Express Plus Centrelink mobile app offers the same functionality, allowing busy parents to complete the process during their commute or while waiting at childcare pickup. The app’s user-friendly interface guides users through each step, ensuring all required information is provided accurately.
Understanding the Annual Balancing Process
Each financial year, Services Australia undertakes a process called balancing. The agency compares a family’s estimated income with their actual income. This process is fundamental to the integrity of the family payment system and ensures that subsidies are calculated based on actual rather than projected circumstances.
Most families overestimate their income, which usually results in top-up payments or supplements. This means many families who complete the confirmation process will actually receive additional payments, making the administrative requirement financially beneficial rather than merely compliance-focused.
Confirming income ensures families receive what they are entitled to. Without this confirmation, funds will remain unclaimed. This underscores the importance of the process—it’s not just about maintaining current payments but also about accessing additional entitlements that may be owing.
Financial Consequences of Non-Compliance
The financial implications of missing the income confirmation deadline extend far beyond temporary payment suspensions. Families affected by the Child Care Subsidy suspension face immediate increased out-of-pocket expenses for childcare, which can range from hundreds to thousands of dollars per week depending on the number of children and hours of care required.
“If families miss the 30 June deadline, their fortnightly Child Care Subsidy payments will stop and they’ll have to pay full child care fees from 7 July 2025”. This immediate impact can create cash flow problems for working families, potentially forcing some parents to reduce work hours or seek alternative childcare arrangements.
For Family Tax Benefit recipients, the consequences can be even more severe. “Families may have to repay all the Family Tax Benefit they received during the 2023-24 financial year, and their fortnightly payments may stop”. This dual impact of lost future payments and potential debt recovery represents a significant financial risk for affected families.
System Reliability and Processing Times
Services Australia has assured families that their systems are fully operational and capable of handling the volume of confirmations required. Centrelink and the ATO systems are fully operational to handle submissions and declarations, with processing occurring rapidly once confirmations are submitted.
The government has emphasized the reliability of their digital platforms, encouraging families to use online services for faster processing. The myGov portal and Centrelink mobile app have been upgraded to handle increased traffic during peak periods, ensuring families can complete their confirmations without technical difficulties.
Recovery timeframes for suspended payments vary depending on the method of confirmation and individual circumstances. Families who confirm their income through digital channels typically see payments restored within one to two weeks, while those requiring manual processing may experience slightly longer delays.
Prevention and Future Planning
To avoid similar disruptions in future years, families should maintain awareness of annual administrative requirements and ensure their contact details remain current with Services Australia. The agency typically provides multiple reminders through various channels, including mail, email, SMS, and notifications within online accounts.
Services Australia has already contacted families to remind them of this obligation. However, many families have not yet responded. This highlights the importance of regularly checking communications from government agencies and responding promptly to administrative requirements.
Setting calendar reminders for key dates, such as the June 30 income confirmation deadline, can help families stay ahead of requirements. Many families also benefit from engaging with qualified financial advisors or accountants who can provide guidance on both tax obligations and Centrelink requirements.
Support and Assistance Available
Families struggling with the income confirmation process or facing financial hardship due to payment suspensions have several support options available. If individuals are unsure whether they need to lodge a return, they should contact the Families line. Staff can help clarify requirements and provide appropriate options.
Services Australia operates dedicated phone lines for families, providing personalized assistance for complex situations. The agency also maintains a network of service centers where families can receive face-to-face support from trained staff members.
Community organizations and financial counseling services can provide additional support for families experiencing financial stress due to payment disruptions. These services often offer free advice on budgeting, debt management, and accessing emergency financial assistance.
Looking Forward: Ensuring Continuous Support
The current situation serves as a reminder of the importance of maintaining compliance with Centrelink requirements to ensure uninterrupted access to family payments. Government officials continue to urge families to complete this process before 30 June. Delays beyond that date could lead to loss of benefits and increased out-of-pocket expenses.
While the deadline has passed, affected families should take immediate action to restore their payments and minimize financial disruption. The confirmation process remains available, and Services Australia continues to process applications as they are received.
For families who have successfully confirmed their income, the experience highlights the value of staying engaged with government communications and maintaining accurate records. As the childcare landscape continues evolving, these administrative requirements ensure that support reaches the families who need it most while maintaining the integrity of public funding systems.
The 240,000 families affected by this issue represent a significant portion of Australian working families who rely on government support to balance work and family responsibilities. By understanding the requirements and taking prompt action when needed, families can ensure continued access to the financial support that enables both parents to work and children to receive quality care and education.