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Daycare centre holding back CCR, even though I don't claim CCB?


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#1 Hands Up

Posted 24 February 2017 - 01:00 PM

Hi, as the title says, my centre is holding back the last 15% of CCR for both my kids, despite not getting CCB.

When I challenged this they said they would lift the system block, but that I had to chase up the CCR for the last two weeks not paid.

My last interaction with Centrelink was unbelievably painful, and given this is not a Centrelink decision but a centre one, I'm not sure it would help anyway.

So, would you email the centre's head office (it's part of a large chain). I've tried several times with the centre director (in person and over email) and she's not budging. It's weird. She's normally very helpful. I should add that the first time I asked her she told me point blank that 15% was held back for all CCR recipients, so her knowledge is lacking in this area.

I don't want to cause an issue for her, but this is playing havoc with our short-term budgeting, and I do not want to sit on the phone for three hours with Centrelink.

#2 qak

Posted 24 February 2017 - 01:19 PM

I thought it was Centelink that holds the 15%, not the centre, but it seems to be only if you are claiming CCB at >0

https://www.humanser...ild-care-rebate

I think you should clarify this with Centrelink, they can pay the CCR directly to you in any case.

#3 barrington

Posted 24 February 2017 - 01:20 PM

 Hands Up, on 24 February 2017 - 01:00 PM, said:

My last interaction with Centrelink was unbelievably painful, and given this is not a Centrelink decision but a centre one, I'm not sure it would help anyway.

My understanding is that you give the CCC your CRN.  The CCC cannot change how much CCB and/or CCR you are entitled to or want to claim.  They simply submit attendance data and are paid a lump sum by the government.  The balance of the fees is paid by the parents.

#4 Hands Up

Posted 24 February 2017 - 01:24 PM

Yes that's what I thought to, but it seems to be that the system at the centre automatically assumes that each parent has CCB and cuts it off at 85%. Now the centre is saying it's my issue to sort out, but I really don't think it is.

So would you go to head office about this, as my take on it is that they are effectively holding my CCR and not paying it (as Centrelink know I don't get CCB).

#5 afterlaughter

Posted 24 February 2017 - 01:30 PM

I thought if your estimated income was above the CCB limit then the 15% was not held back but if your estimated income made you eligible for CCB but you chose to be paid at 0% rate then the 15% was withheld.

#6 boymumma

Posted 24 February 2017 - 01:30 PM

Are you me? I was on the phone to CL for 90mins this morning trying to figure out why we're only receiving 35% of CCR, instead of the full 50%. In our case, we finally figured out it was because I had updated our income estimate late in the financial year (Jan this year) so they're withholding 15% to reconcile at EOFY, and it'll all reset after that. Have you recently updated your income estimate?

ETA Daycare told me of over 120 accounts there are about 3 that were tricky like mine, so it's not a common thing thus it took a while for me, daycare and CL to figure it out.

Edited by boymumma, 24 February 2017 - 01:33 PM.


#7 Hands Up

Posted 24 February 2017 - 01:32 PM

Ha ha I don't even know how to update the income estimate. I've never bothered as we have no hope of getting CCB, so it's irrelevant.

#8 barrington

Posted 24 February 2017 - 01:54 PM

 Hands Up, on 24 February 2017 - 01:24 PM, said:

Yes that's what I thought to, but it seems to be that the system at the centre automatically assumes that each parent has CCB and cuts it off at 85%. Now the centre is saying it's my issue to sort out, but I really don't think it is.

So would you go to head office about this, as my take on it is that they are effectively holding my CCR and not paying it (as Centrelink know I don't get CCB).
It is your issue to sort out directly with centrelink.  The centre cannot amend or change any of your centrelink details or entitlements.  Any money 'held back' is done so by centrelink, not the centre or its system.

#9 Hands Up

Posted 24 February 2017 - 01:58 PM

^^^ The Director has already told me that their own system holds back 15% from all families regardless of their CCB situation. Surely this isn't right?

#10 barrington

Posted 24 February 2017 - 02:06 PM

All childcare computer systems are linked to Centrelink in order to upload enrolment and attendance data.  She's probably meaning that Centrelink does the holding back, and it affects the calculation of fees owing through the computer system.

#11 Hands Up

Posted 24 February 2017 - 02:40 PM

So after 32 minutes on hold, Centrelink have confirmed that they have released the funds as per usual and showed me where I can find it online. They have said the problem absolutely sits with the centre. At least this way I know I'm progressing the right way.

#12 27plus

Posted 24 February 2017 - 03:17 PM

 Hands Up, on 24 February 2017 - 02:40 PM, said:

So after 32 minutes on hold, Centrelink have confirmed that they have released the funds as per usual and showed me where I can find it online. They have said the problem absolutely sits with the centre. At least this way I know I'm progressing the right way.

Yes it would be the Centre.  They are not changing the percentage on their system.

It can be changed very easily (I do this for my work and do it all the time).

#13 27plus

Posted 24 February 2017 - 03:22 PM

Just a thought - if they charge you in advance (as we do) do they show an estimate of the rebate for the week/s in advance?

If they don't just underpay 50% if that is easily to calculate on your end.

If they do estimate it, the 50% should be showing not 35%, otherwise their outstanding fees balance would not  be correct.

#14 Fresh Start

Posted 24 February 2017 - 03:33 PM

Since by now you have clarified it is the centre I would be asking what gives them authority to withhold. As far as I know they have no such authority under what little regulation there is.

And EVEN if you did end up with an overpayment of CCR because of CCB Centrelink will chase you not the centre so they shouldn't be withholding for any customers - even if they get CCB.

And finally, why would she tell you to chase up the last two weeks with CL when she has told you the centre withheld it not Centrelink.

The centre need to give you that money as Centrelink deems it has been paid to you as it went to the centre as per your request. You will never be able to get tha moe y out of the government now.

In your shoes I'd report them for holding that money, and I'd encourage anyone else in the centre who is affected to do so as well.

#15 Hands Up

Posted 24 February 2017 - 03:43 PM

Yes I've now sent a strongly worded email to head office so hopefully I get a quick response. They are a good centre but their invoicing is shocking. I went over my credit card limit a couple of months ago as they withdrew $2700 one week instead of $416. After a lot of back and forth they paid the overdrawn fee. There have been other, smaller mistakes.

I'd change to me paying them rather than direct debit but if I do you don't get 50% off for planned holidays..... so a bit stuck really.

#16 Hands Up

Posted 24 February 2017 - 03:45 PM

Also the Centrelink employee told me it happens a lot. Centres applying a blanket 15% hold back regardless of CCB, and then families having to chase. Crazy.

#17 jobo77

Posted 24 February 2017 - 04:09 PM

Can't you change it so you just pay the centre the full amount weekly/fortnightly and have the CCR paid to you directly by the govt? I did that as I didn't trust my centre to get it right after numerous invoicing errors.

#18 BornToLove

Posted 24 February 2017 - 04:50 PM

 jobo77, on 24 February 2017 - 04:09 PM, said:

Can't you change it so you just pay the centre the full amount weekly/fortnightly and have the CCR paid to you directly by the govt? I did that as I didn't trust my centre to get it right after numerous invoicing errors.

Same here. I love our child care providers, but keeping the books is not their forte.

We get quarterly CCR reimbursements but I think you can get reimbursed more frequently.

#19 Fresh Start

Posted 24 February 2017 - 04:51 PM

 Hands Up, on 24 February 2017 - 03:43 PM, said:

I'd change to me paying them rather than direct debit but if I do you don't get 50% off for planned holidays..... so a bit stuck really.

Cheeky buggers. Is Perpetual's plan an option? If so you can't change it to take effect now (CCR rules say you have to keep the same payment method for the financial year barring exceptional circumstances) but you can change it now effective 1/7.

#20 Hands Up

Posted 24 February 2017 - 04:52 PM

Yes, I will do next financial year (they don't let you make changes during the financial year).

#21 Hands Up

Posted 24 February 2017 - 04:53 PM

Snap Nasty Start. We posted the same time.

I have to keep the direct debit to get the discounts, but I am absolutely changing the CCR payment method next year!

#22 ednaboo

Posted 24 February 2017 - 05:49 PM

 jobo77, on 24 February 2017 - 04:09 PM, said:

Can't you change it so you just pay the centre the full amount weekly/fortnightly and have the CCR paid to you directly by the govt? I did that as I didn't trust my centre to get it right after numerous invoicing errors.
Same. No 15% withheld too. I get the rebate weekly iirc.

Edited by ednaboo, 24 February 2017 - 05:50 PM.


#23 SplashingRainbows

Posted 24 February 2017 - 05:54 PM

 jobo77, on 24 February 2017 - 04:09 PM, said:

Can't you change it so you just pay the centre the full amount weekly/fortnightly and have the CCR paid to you directly by the govt? I did that as I didn't trust my centre to get it right after numerous invoicing errors.

I've always done this. I pay 100% of the fee to the centre. Centrelink pays me the 50%. That way I can easily check the centres calculations and account balance.

#24 qak

Posted 24 February 2017 - 06:00 PM

I pay the 100% and get to 50% back the following week too.

I wouldn't have thought it would be legal for the centre to withhold 15% - it's not their money!

#25 SeaPrincess

Posted 24 February 2017 - 11:00 PM

Why would the centre hold it back? The centre isn't directly involved in any of the EOFY reconciliation.

ETA we were in the same position, but quarterly payment direct to us, and we never had anything withheld.

 Hands Up, on 24 February 2017 - 04:52 PM, said:

Yes, I will do next financial year (they don't let you make changes during the financial year).

Make sure you check when to do this - it's usually April - June for the following financial year.

Edited by SeaPrincess, 24 February 2017 - 11:13 PM.





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