Tax time is looming again, and even if you’ve been through it dozens of times, there are fresh warnings you shouldn’t ignore – especially if you’re an older Australian. Centrelink (via Services Australia) and the Australian Taxation Office (ATO) have issued new alerts as June 30 approaches, essentially saying: don’t assume this year will be the same as the last.

In fact, Services Australia has cautioned that “each year is different so your outcome may change each time”. In plain English, that means your tax refund (or bill) might look a little different this year than what you’re used to. Let’s break down why – and what it all means for your hip pocket as a senior.

A New Tax Time, A New Outcome?​

Every financial year brings changes – in your income, in tax laws, or both. One big example is the end of the Low and Middle Income Tax Offset (LMITO) in 2022, which many Australians didn’t notice until they lodged their 2023 returns. The LMITO was a handy tax offset of up to $1,080 that boosted many people’s refunds in previous years.

Now it’s gone, and the end of LMITO ultimately means you will pay more tax overall, and you’re likely to receive a smaller tax refund at tax time. Millions of Australians who got used to a nice bump in their refund suddenly found it missing last year. If you or your family members were among them, it was quite the unpleasant surprise!


But the offset isn’t the only reason your tax result can swing. Maybe you picked up some extra income – a part-time job to help with rising costs, or interest from savings (noting those interest rates have finally crept up a bit). Maybe you sold off some shares, downsized your house, or withdrew a larger chunk from your superannuation.

All these events can change your tax outcome compared to the year before. On the flip side, some of you might have less taxable income now – for instance, if you fully retired last year and stopped working. In that case, you might even drop below the tax-free thresholds and owe nothing at all.

For seniors, there’s actually a special tax offset (the Seniors and Pensioners Tax Offset, or SAPTO) that effectively raises the tax-free threshold. If Age Pension is your only income, you can earn quite a bit and still not pay tax. In fact, a single age pensioner can have taxable income up to around $33,000 and be exempt from paying tax, thanks to SAPTO. Couples have a slightly lower threshold (around $30,500 each).

So if you’re a full Age Pension recipient with maybe a little bank interest, you likely won’t owe a cent in tax – which is great news. However (there’s always a however!), if you have other income – say from investments, a rental property, or some consulting work – that pushes you above those amounts, you may need to lodge a return and possibly pay a bit of tax. The key point is, don’t assume what happened last year will repeat. “Each year is different,” Services Australia reminds us, and your refund or tax bill can change depending on your income and circumstances.

To avoid nasty shocks, it’s wise to reflect on what changed for you this past year. For example, did you start or stop any income streams? Were there any one-off payments? Government payments like Centrelink benefits can also change year to year (perhaps you became eligible for a seniors healthcare card, or your spouse started getting a pension). All these could tweak the final equation.

The ATO won’t send you a personalised heads-up of what’s different – that homework is up to us as taxpayers. But forewarned is forearmed: thinking ahead can save you from counting on a refund that doesn’t show up, or worrying about a tax bill that actually makes sense once you break it down.

And here’s a little silver lining: if you do end up with a smaller tax refund this year, it usually means you paid less tax during the year or earned a bit more income – not exactly a bad thing in itself. Of course, when you’re on a tight budget, it can feel like a loss if you were banking on that refund for a winter bill or a treat for the grandkids. The message here is to be prepared. As we’ll see, there are some concrete reasons your refund could take a detour – including if you owe money to certain government agencies.

An Australian tax form and documents – every year your tax outcome can change based on new rules and your personal situation.

The Centrelink-ATO Tag Team: Sharing Info and Balancing the Books​

Gone are the days when the ATO and Centrelink operated in separate universes. Now, they’re a bit of a tag team at tax time. Information flows between Services Australia (which administers Centrelink payments) and the ATO automatically. In fact, by late July each year, your Centrelink payment information will pre-fill in the ATO’s online tax return system (myTax). This means if you received taxable Centrelink payments – like JobSeeker, Age Pension, or others – they should already appear in your tax return data once it’s “tax ready.” (A quick tip: The ATO advises it’s easier to lodge after late July for this reason – so all the info from employers, banks, and government payments is pre-loaded for you. Lodging too early in July, though tempting, might mean you miss something and have to amend the return later.)

For most honest folks, this data-sharing is a boon – it helps ensure you don’t accidentally forget to declare a payment, and it streamlines the process. But there’s a flipside: it also means Centrelink and the ATO can work together when it comes to debts and overpayments. If you owe money to Centrelink, they can use your tax refund to recover that debt. Yep – your lovely tax refund can be snatched away to pay off money Centrelink says you owe.

This is not new, but Services Australia is making sure to flag it as a warning this year: “Sometimes we’ll use your tax refund to reduce the amount you owe us, even if you have a repayment arrangement in place.” In bureaucrat-speak, this process is called “offsetting” or a tax refund garnishee. Legally, the government is entitled to do it – “we have to recover money that’s owed to us,” the agency explains, and doing so at tax time can help people “plan ahead and minimise financial impacts”.

In other words, if you know you have a Centrelink debt, don’t start planning a big spend for your tax refund – because you might not get to see it. The refund (or part of it) could be applied to your debt instead, and you’ll receive a letter explaining that your refund was used as a “Credit offset to Centrelink” on your ATO notice of assessment.



Now, before anyone panics, let’s clarify what kinds of debts we’re talking about. This primarily kicks in for overpayments of benefits – for example, if you receive Family Tax Benefit or other family assistance, at the end of the year they check if you were paid the correct amount. That process is called balancing. If it turns out they paid you too much (maybe because your income estimate was low), they will recover the overpayment from any top-up you were going to get, or even from your tax refund. Only after clearing any debt will they pay you any remaining top-up or supplement.

This mostly affects families with kids (Family Tax Benefit and Child Care Subsidy recipients) – not so much full-age pensioners who don’t get those payments. In fact, Services Australia just revealed that more than 170,000 families on FTB and 240,000 families on CCS still needed to confirm their incomes for 2023–24 by 30 June 2025 so their payments can be balanced. “Most families get a top-up or supplement when we balance their payment, so act now and make sure you’re not missing out,” urges Hank Jongen of Services Australia.

It’s a timely reminder that if you (or your adult children or grandkids) receive those family payments, sorting out your income info by the deadline is crucial – otherwise you could miss out on money or even have to repay what you got during the year.



For seniors who aren’t dealing with family payments, the more likely scenario is an old Centrelink debt from something else. Perhaps you were overpaid on JobSeeker before you hit Age Pension age, or there was an accounting error on a past benefit. It could even be a debt from many years ago that hasn’t been fully repaid. The most notorious example in recent memory was the “robodebt” fiasco – a now-defunct (and deemed unlawful) scheme that wrongly claimed thousands of people owed money.

During those years, the ATO was roped in to garnishee tax refunds to recoup alleged debts. Many Australians were blindsided when their expected refund vanished to pay a debt they didn’t even truly owe. (Thankfully, robodebt has since been scrapped and refunds of those recovered payments issued – but the whole saga still leaves a bitter taste.) The lesson here is that the system will use any means to claw back what it’s owed. So if you do have an outstanding debt with Centrelink, be aware your refund is fair game.

Services Australia’s advice is to plan ahead: if you know you owe money and are worried about the impact, you can call their debt recovery line before you lodge, to discuss your options. In some hardship cases, they might hold off taking your refund – for example, if your repayments were paused due to a disaster or you’re under a formal review. But absent special circumstances, it’s basically “you owe us, we’ll take it.”

Now, not everyone will face this. If you’re an age pensioner with no outstanding debts or overpayments, your refund (if any) should land in your bank as usual. And remember, if Centrelink actually owes you (say you were underpaid a benefit), you’ll get that top-up after you and your partner (if applicable) lodge your tax returns or confirm you don’t need to lodge. It works both ways in that sense – tax time is true-up time.

The big picture message: Centrelink and the ATO are intertwined at tax time, making sure every dollar is accounted for, whether coming to you or going to them. It’s a far cry from the old days when you might tell one department one thing and the other would be none the wiser.

What Should Seniors Do at Tax Time?​

By now you might be thinking, “Alright, I get the warnings – but what do I actually need to do?” Good question. The answer will depend on your situation, but let’s go through the common scenarios for older Australians:

• Do I need to lodge a tax return? Many retirees find themselves asking this. If your only income is the Age Pension (and maybe a bit of bank interest or a part-pension), there’s a good chance you don’t have to lodge a tax return in the traditional sense. As mentioned, the seniors tax offset and tax-free threshold often mean you owe zero tax. However – and this is important – if you don’t need to lodge, you’re supposed to inform the ATO of that. This is done via a “Non-Lodgment Advice” form. It’s basically a short form or online submission saying, “I’m not filing a return for 2024-25 because I don’t need to.” Age pensioners who are fully reliant on the pension are generally not required to lodge a return, but still need to lodge a form with the ATO – a non-lodgement advice. This tells the ATO you’re not hiding or forgetting to lodge; you’ve explicitly stated no return is needed. If you skip this, the ATO might later send you letters asking, “Hey, where’s your tax return?” which nobody wants to deal with unnecessarily.
  
  The good news is the process is not too painful. You can do it online through your myGov account linked to the ATO, or by using a paper form. If you use a tax agent, they can submit it for you as well. And you don’t have to do it every single year if your situation doesn’t change – you can inform the ATO that you won’t need to lodge in future years until further notice. That’s handy for those permanently retired with no tax obligations.
  
  
• If you do have to lodge a return: perhaps you have a part-time job, or substantial investment income, or you sold a holiday home – then by all means, you must lodge one. The standard deadline for self-lodgers is 31 October each year (for the financial year ending the previous 30 June). If you use a registered tax agent (and are on their books by Oct 31), you usually get an extension to lodge, often as far as May the next year. Missing the deadline isn’t great – the ATO can impose fines that add up to over $1,600 for late lodgment in worst cases. So mark your calendar or have your accountant sorted if you need to lodge.
  
  One common question: I retired midway through the year – do I need to lodge? If you had a job for part of the year and taxes were withheld from your pay, you’ll likely want to lodge to potentially get a refund (or at least to square up any difference). Also, if you made any capital gains (for instance, selling investments) or received untaxed income (like some super withdrawals under 60, etc.), those may require a return. If in doubt, the ATO has an online tool called “Do I need to lodge a tax return?” that asks a few simple questions and gives you an answer. It takes into account things like government payments, your age, and income sources. This can be a quick way to double-check. And of course, you can always ring the ATO or consult an accountant for personal advice if it’s confusing.
  
  
• Get your paperwork (digital or otherwise) in order: Even if our finances are simpler in retirement than during our working lives, tax time still means gathering some info. For many seniors, that includes your Centrelink Payment Summary (nowadays usually available in your myGov account, rather than a paper in the mail). Centrelink payments are generally taxable only for certain benefits. The Age Pension is taxable, but many age pensioners don’t end up paying tax due to the offsets. Still, the amount you received needs to be reported (and as noted, it will likely pre-fill for you in myGov by late July). If you have private pension income from super, you might have a PAYG statement from your super fund. And don’t forget any bank interest, dividends, or other earnings – the ATO often pre-fills those too (they get that info from banks and companies), but always check against your records. The motto: Trust, but verify the pre-filled data.

• Timing matters: As mentioned earlier, it’s wise to wait until late July or even August to lodge if you’re doing it yourself, because by then most information (including Centrelink and health insurance data) will be loaded in the system. If you jump the gun on July 1st out of excitement (who are those eager beavers filing on day one?), you might find out something was missing and you’ll have to amend your return. Patience can pay off with a smoother experience.
  
  
• Use available help: If doing a tax return (or even that non-lodgment advice) feels daunting, remember there are resources. The ATO runs a Tax Help program from July to October, where accredited volunteers help people earning around $70,000 or less to lodge their returns online – and they can even help you tell the ATO if you don’t need to lodge. It’s free. These volunteers typically operate out of community centers, libraries or via phone. If you’re a bit anxious about using myGov or confused by MyTax, a Tax Help volunteer could guide you through. And of course, there’s no shame in going to a professional tax agent either, if you prefer someone else handle the nitty-gritty (just beware of fees and always use a registered agent).
  
  
• Special scenarios: Some seniors might have unique circumstances – like if you reached Age Pension age during the year, you might become eligible for SAPTO partway, which could affect your tax. Or if you worked and had tax withheld, but then went on pension, you could be due a decent refund because your taxable income for the year was lower than what your employer anticipated. It might be worth checking things like the Work Bonus for pensioners if you had employment income; while that affects your pension, not your tax, it’s all related in managing your finances.

The Work Bonus lets age pensioners earn a certain amount from work without reducing their pension – currently you can earn up to $204 per fortnight (singles) before it starts to taper your pension, and there’s even a temporary increase in the allowance (they gave a one-off boost to the Work Bonus bank). Earning within those limits means you keep your full pension and you might stay under tax thresholds. But if you exceed them significantly, both your pension and tax situation could change. The interplay gets complex, so again, getting advice if you juggle work and pension is worthwhile.

In short, the best way to navigate tax time is to be informed and proactive. Don’t wait for a problem to arise. Check whether you need to lodge, make sure Centrelink and the ATO have the info they need, and take advantage of help available. It’s not about doing the Tax Office a favor – it’s about ensuring you get the right outcome and don’t miss out on anything you’re entitled to.

Scams, Schemes and Things That Go Bump at Tax Time​

We can’t talk about tax time warnings without mentioning scams. Unfortunately, tax season has become open season for scammers, and they’re getting trickier every year. The ATO has explicitly warned Australians to brace for a “deluge” of fake emails and texts leading up to June 30. According to the ATO, there’s been a staggering 300% increase in impersonation scam emails compared to this time last year.

That’s right – triple the number of dodgy emails pretending to be from the tax office. Why the spike? Scammers know this is when we’re expecting communication from the ATO – whether it’s about our refunds, lodgments, or those friendly reminders – so we’re a bit on edge and perhaps less vigilant. They prey on that urgency and the flood of legitimate messages, hoping to slip in a fraudulent one when you’re not looking closely.

These scams take many forms. You might get a text message saying something like, “You’re due a $1,200 refund – click here to claim now!” or an email that looks eerily authentic with ATO logos, claiming you owe money and need to pay immediately. A common tactic is the “fake tax refund notification” – an email or SMS that says your taxable income was recalculated and you’re owed some money, with a link to a spoofed myGov login page.

If you follow the link and enter details, wham, they’ve got your credentials. One clue: the ATO has stated it will never send you a hyperlink in an unsolicited text or email. So if there’s a link asking you to log in or provide info, that’s a red flag. Also, they’ll never ask for your passwords, bank account or credit card over email/SMS.



Another pernicious scam is the fake bill or invoice scam – scammers impersonate tax agents or even other companies, sending what looks like a legitimate bill that’s tax-deductible, tricking people into paying for something that’s not real. They know a lot of folks are gathering receipts and might think, “Did I buy this service? Maybe my spouse did… well, it says due, better pay it before tax time.” Sneaky stuff!

Let’s not forget the classic phone call scam – many seniors have unfortunately encountered this. You get a call out of the blue, someone claiming to be from the ATO, often with a stern or urgent tone. They might say you have a tax debt and demand immediate payment, sometimes threatening arrest (the audacity!) if you don’t comply. These calls can be very convincing; they may even spoof the caller ID to show a Canberra area code or “ATO” as the name.

It’s all bogus. The ATO will never threaten you with immediate arrest or demand payment via unusual methods like gift cards or wire transfers, which are telltale signs of a scam. Real ATO communications are much more civil and by-the-book – you’ll typically get an official letter to your myGov account or a gentle reminder, not an ultimatum to pay right now under menace.

The extent of tax scams is truly sobering. In the first four months of 2025 alone, Australians lost about $119 million to scams of all types, and a huge chunk of that was due to phishing (fake messages to steal info). While the number of scam reports actually went down a bit (maybe we’re getting better at spotting them), the amount of money lost nearly tripled in phishing scams, which means the scammers are unfortunately successfully conning people out of larger sums. Older Aussies are often targeted because, let’s face it, the scammers assume seniors have nest eggs or are less tech-savvy (even though that’s a gross generalization).

So, what can we do? First, a healthy dose of skepticism is your best friend. As Services Australia itself advises: be “wary of emails, phone calls, texts and social media messages claiming to be from the ATO or myGov... If in doubt, don’t respond.”. Jane beyond next door sending you a Facebook message about tax would be odd – so is any direct message about your tax affairs that isn’t through official channels.

The ATO has an official app and of course the myGov portal; stick to those for checking any tax-related communications. If you do get a phone call that worries you, hang up and call the ATO’s known hotline yourself to verify – don’t use any number the caller gave you. Nine times out of ten, you’ll find out it was a scam call and you did the right thing by cutting it off.

Also, keep your guard up especially in the next few months. The ATO and consumer groups have warned that scammers ramp up activity in June, July, and August – basically the peak tax season. They rely on the fact that many people will be awaiting a tax refund or at least communication about their tax return.



One expert from CPA Australia noted that scammers often time their messages for when you’re likely distracted – “first thing in the morning” in your email inbox, or at night when you might be tired. And their messages can look legit, often using real ATO language like “urgent” and “action required”.

Some even include links to convincing copies of the myGov login page. Always double-check the sender’s email address and don’t click links. If there’s an email saying “log in to view a message,” it’s safer to manually navigate to the myGov website (type my.gov.au yourself) and log in fresh. If there really is a message for you, it’ll be in your secure inbox there. This simple step defeats a lot of scams.

Lastly, consider talking about this with friends and family – scam awareness is something we should spread. A quick chat with your golfing buddies or the community group about the latest scam one of you saw can help others be alert. And if you unfortunately ever do get caught by a scam, do report it (to Scamwatch or the ATO if tax-related) – it helps authorities warn others and sometimes even catch the culprits.

In summary, stay sharp against scams. It’s a shame we have to be on guard during a time when we’re just trying to do the right thing with our taxes, but that’s the reality. The more informed and cautious you are, the less likely you’ll fall prey to these vultures. As the saying goes, if something looks too good (or too scary) to be true, it probably is! When in doubt, get advice – even Services Australia and ATO have dedicated scam info pages to help you verify things. It’s better to take an extra minute than to lose thousands of dollars or your peace of mind.

Taking It All in Stride​

We’ve covered a lot: from why your tax refund might not be as fat as last year, to how Centrelink might claw back debts, to practical to-dos and staying safe from fraud. It’s a fair bit to digest, but the overarching theme is “be prepared, not scared.” Tax time doesn’t have to be an ordeal, even for those of us who don’t exactly look forward to firing up the calculator (or navigating myGov). By knowing the potential pitfalls and quirks – like the fact that the government will balance and reconcile everything each year, or that scammers are lurking – you can approach July with more confidence and less anxiety.

For many seniors, finances are tighter than ever due to the rising cost of living. That electricity bill sure isn’t what it used to be, right? So every dollar counts. If you’re due a refund, you want to get every bit of it you’re entitled to. And if there’s a chance you’ll owe a bit of tax, it’s better to know early and plan for it than to be blindsided. The good news is that the system also has safeguards to ensure you do get what you’re owed – like those family payment top-ups, or refunds of any excess tax you paid through the year. It works both ways.


One thing I find a bit comforting is that we’re all in the same boat during tax season. Young or old, everyone has to go through these motions. In fact, a lot of younger Australians could probably take a cue from seniors in terms of being organized and meeting deadlines – after all, you don’t get to our age without learning a thing or two about paperwork! The government’s warnings aren’t meant to alarm, but to inform. They basically don’t want you to assume “no news is good news” or to procrastinate on tasks like income confirmation or lodging, because that can lead to real financial pain (missing out on payments or incurring debts or fines). So, while it’s not exactly fun reading press releases about tax time, at least we can use that information to our advantage.

Let’s also cast an eye to the horizon: The tax landscape continues to evolve. Next year, for instance, some major income tax changes (the Stage 3 tax cuts) are set to kick in, which will simplify brackets and could affect income tax rates for many – not so much low-income pensioners, but if you have adult children working, they might see changes in their take-home pay. For seniors with income from investments, those changes might not directly hit you, but it’s all part of the ongoing saga of “tax reform” in Australia. One can hope that maybe one day lodging a tax return will be completely effortless or even unnecessary for most people (some countries pre-fill everything and you just confirm). We’re not quite there yet, but it’s getting easier bit by bit.

At the end of the day, whether you end up with a refund, a tax bill, or break even this year, the important thing is not to panic. Use the resources at hand, double-check anything that doesn’t make sense, and remember that both the ATO and Centrelink have channels to help you if you’re confused (yes, you might wait on hold for a while, but they do pick up eventually!). By staying informed – like you’re doing right now – you’re already ahead of the curve.

So, as tax time approaches, perhaps make yourself a nice cup of tea (or pour a glass of something stronger if that’s your style) and get your ducks in a row calmly. You’ve handled decades of life’s challenges; a tax return is not going to get the better of you. In fact, you might even find satisfaction in ticking it off the list, knowing everything is settled for another year.

And a final thought-provoking question to leave you with: given all these warnings and changes, how do you feel about the way our tax system treats seniors, and would you do anything differently this year to tackle tax time more confidently?