Debts

A debt is created when a client or childcare centre is overpaid.

Debts can be recovered from the client or provider depending on the reason why the debt was created.

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 parent's income
• absences - when no charge is made for absences by the childcare centre
• change in parent's circumstances i.e. relationship status
• 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. The debt must be established from the day after the parent leaves the country.
• admitted/discharged from hospital
• imprisoned/held in custody

Debts should be recovered from the provider, when a debt has arisen from one of the following circumstances:

• child leaves the centre permanently - the childcare centre knowing the child has left cannot accept the money in good faith
• childcare centre is closed - centres may close during school holiday periods. This excludes statutory holidays
• caregiver is unavailable - for home based care providers there are occasions when the caregiver cannot provide childcare
• as a result of Twenty hours Early Childhood Education being paid to the centre for hours for which they also receive Childcare Subsidy

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.