Childcare Assistance Programme : Contents
Client debt
Debts should be recovered from the parent when the child continues to be present at the centre and a debt has arisen as a result of one of the following circumstances:
- change in client's income
- absences - when no charge is made for absences by the childcare centre
- change in application type
example if a client finishes training or ceases work and is now only eligible for 9 hours - change in care arrangement
- if the child or parent goes overseas we can only pay the subsidy if the costs are continuing. For example if an absence fee is charged. If the costs are not continuing the debt must be established from the day after the parent leaves the country.
- admitted/discharged from hospital
- imprisoned/held in custody
Note it is important that clear notes are put on CMS to show how the debt was created and who is responsible for the refund.
For more information see:
Legislation
- MSD's duty to recover debts section 362 Social Security Act 2018
- Beneficiary must notify change of circumstances section 113 Social Security Act 2018
- Review of entitlement and rate payable section 304 Social Security Act 2018
- Ministerial Direction on Debt Recovery
