Statement of Tax Record (STR) for Child Care Subsidy (CCS)

What is the STR requirement for CCS?

For CCS approval, a provider must be considered fit and proper to handle public money. All new providers go through a fit and proper assessment. The STR will form part of this assessment. It demonstrates a provider’s engagement with the tax system.

The provider must supply the STR. Applicants will need to:

• request and obtain the required STRs for their business from the Australia Taxation Office (ATO)
• provide us with the STR as part of their application for CCS approval.

This requirement applies to:

• all new providers applying to administer CCS
• existing CCS approved providers, for example if requested as part of an audit or compliance review. 

How do I request an STR?

You can request an STR from the ATO using ATO online services or through your registered tax professional.

To request an STR, visit the ATO website.

How long does it take to receive an STR?

The ATO will issue an STR within 4 days of receiving your completed online application. The STR will state whether you have met or not met the criteria for a satisfactory tax record.

What is a satisfactory STR?

To receive a satisfactory STR from the ATO, you need to: 

• have current registration, including your Australian business number, GST, and tax file number (where required)
• have lodged at least 90% of each type of lodgement, including your income tax, business activity statement and fringe benefits tax that were due in the last four years, and
• pay any undisputed outstanding debts over $10,000 or set up a payment plan. 

Reasonable delays in lodgements due to extensions agreed to by the ATO will not affect a provider from receiving a satisfactory STR. 

Providers with an Australian tax record of less than four years

You must also meet additional conditions if you have an Australian tax record of less than 4 years. This could include newly established providers.

You will need to state in your STR application:

• whether you are an Australian resident for tax purposes
• that you will comply with and pay all their Australian tax obligations
• that you have no tax related convictions in the last four years inside or outside of Australia (applicable to Australian and foreign entities)
• that you are complying with, or do not have tax obligations, inside and/or outside of Australia.

Once the ATO receives the statements, an STR will be issued stating that you meet the criteria but have a record of less than four years. The STR will be based on the tax records that are available to the ATO.

What if I receive an unsatisfactory STR?

An unsatisfactory STR does not automatically mean that you are unfit to administer the CCS. The STR is considered with other sources of information to determine whether you meet fit and proper requirements.

If you receive an unsatisfactory STR, you can contact the ATO to make corrections where possible.

How long is the STR valid for?

An STR is valid from the date of issue, for:

• 12 months – for providers with an Australian tax record of four years or more
• 6 months – for providers with an Australian tax record of less than four years.

Who needs to provide an STR for my business structure?

Refer to the table below to find out who needs to provide an STR depending on your business structure.
 

Providing an STR for audit or compliance reviews

Existing CCS approved providers will need to provide an STR, if requested, as part of an audit or compliance review.

This request may be part of a review of their conditions of continued approval under Family Assistance Law.

If we request an STR from you, you will need to:

• request and obtain an STR from the ATO and provide to us
• provide an STR receipt if an STR has been requested, but not issued in time