Each year, Services Australia performs a vital process known as “balancing” — a financial reconciliation that can result in either a cash top-up or a repayment notice.
With the financial year running from 1 July 2024 to 30 June 2025, the 2025–2026 period has now begun, and the balancing process is officially underway.
This balancing exercise is designed to ensure that families received the correct amount of government support during the previous year. Two primary payments — the Family Tax Benefit (FTB) and the Child Care Subsidy (CCS) — are each balanced separately.
Why Balancing Matters for Families
Balancing compares your estimated income from the previous year with your actual income as reported to the Australian Taxation Office (ATO). Depending on how close your estimate was to reality, this could lead to:
- A top-up (if you received less than you were entitled to)
- No change
- A debt (if you were overpaid)
It’s important not to panic if you believe a debt is likely. Centrelink offers repayment arrangements and support for financial hardship cases.
Steps to Take: Confirming Your Income
To begin the balancing process, you and your partner must either:
- Lodge a tax return, or
- Declare that you’re not required to lodge one
You can use the Express Plus Centrelink app or your Centrelink online account through myGov for these declarations. If you’re separated, Centrelink will rely on your ex-partner’s income estimate or final income as provided to the ATO.
Even if you don’t need to do anything for FTB, you may still need to act for CCS, as they are balanced separately.
Balancing Timeline and Processing Delays
| Payment Type | Balancing Starts | Important Notes |
|---|---|---|
| Family Tax Benefit (FTB) | Early July 2025 | Based on tax return or income declaration |
| Child Care Subsidy (CCS) | Mid-August 2025 | Requires info from childcare providers |
ATO may take up to 28 days to provide final income details to Centrelink. It’s advised not to call for updates — instead, track progress via your Centrelink app or online account.
Separated? Here’s What to Know
If you’ve separated, Centrelink still needs to balance both your and your ex-partner’s income. Fortunately, you are not required to contact your ex-partner directly. You can call Centrelink at 136 150 to handle this part of the process.
Worried About Owing a Debt?
Centrelink encourages people not to panic. If an overpayment occurred:
- You’ll receive a notification via myGov inbox or post
- Any top-ups or supplements may be used to reduce your debt
- Repayment plans can be arranged in case of financial difficulty
If you have a repayment plan already in place, it doesn’t exempt you from balancing deductions — but Centrelink will still work with you.
How to Avoid a Debt Next Year
Here’s how you can stay in control of your Centrelink payments:
- Keep your income estimate updated during the year
- Choose the right FTB payment option (full, partial, or none)
- Increase the CCS withholding percentage through your online account (default is 5%)
By keeping your details up-to-date and adjusting withholdings, you increase your chances of receiving a top-up instead of an overpayment notice.
Centrelink’s annual balancing process is a routine but critical step in ensuring that families receive accurate government support.
While it can result in a pleasant cash boost, it may also highlight an overpayment that needs to be addressed.
Staying informed, proactive, and up-to-date with your income and payment options is the best way to avoid debt and maximize your benefits in the next financial year.
FAQs
What is Centrelink’s balancing process?
It’s a yearly income review where Centrelink compares your estimated and actual income to adjust Family Tax Benefit or Child Care Subsidy.
When does balancing begin for FTB and CCS?
Balancing for FTB starts in July, while CCS balancing begins mid-August, after receiving data from childcare providers.
What if I get a debt letter from Centrelink?
Don’t worry. Centrelink offers repayment plans and can apply any supplements or top-ups toward the balance you owe.