Debts

A debt is created when a client or 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
• 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
• admitted or discharged from hospital
• imprisoned or 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 OSCAR centre knowing the child has left cannot accept the money in good faith
• OSCAR 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

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.