Centrelink alerts millions of Aussies to act on this crucial step immediately
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As the financial year drew to a close, many Australians are turning their attention to tax time—a period fraught with confusion and stress, especially for those receiving payments from Centrelink.
Services Australia has issued a crucial reminder for millions of Aussies: it's time to get your affairs to avoid potential issues with your Centrelink benefits.
It's important to know that most Centrelink payments, including the age pension, jobseeker payment, and parental leave payment, are considered taxable income.
‘If you get a payment from us, you may need to do things every financial year at tax time,’ Services Australia said.
However, not all payments from Centrelink are taxed.
Services Australia highlighted that the Family Tax Benefit, Child Care Subsidy, and Additional Child Care Subsidy are among the few that are non-taxable.
This distinction is crucial for accurately reporting your income to the Australian Taxation Office (ATO).
Services Australia emphasised the need for recipients to either lodge a tax return or submit a non-lodgement advice if they don't need to file a return.
Non-lodgement advice informs the ATO that you won't be submitting a tax return for the year. This is necessary to ensure that your records are up-to-date and that you don't receive unnecessary follow-up from the tax office.
To streamline the process, Services Australia advises waiting until your payment summary information is pre-filled in myTax, the ATO's online tax service.
‘If you’re lodging a tax return, you can see your Centrelink payment summary information in the ATO’s myTax now,’ Services Australia said.
‘If you get other income and payments, they should pre-fill from late July.’
‘Using pre-filled information helps you get your tax return right and avoid having to amend and re-submit it again later. If you can, wait to lodge until late July.’
If you're eager to lodge your tax return before the 'Tax Ready' status is indicated, be prepared to manually gather and calculate your financial information.
While this can be done, it's generally recommended to wait until all data is pre-filled to minimise errors.
Recognising that tax time can be overwhelming, the ATO offers a helping hand through its free Tax Help program.
This service is available to individuals earning $60,000 or less annually with simple tax affairs. Accredited volunteers can assist with various tasks, including lodging your tax return online, creating a myGov account, lodging an amendment, claiming a refund of franking credits, or notifying the ATO of non-lodgement.
You can access this support online, by phone, or in person at Tax Help centres nationwide.
You can also check whether your payment is taxable here and check whether you need to lodge a tax return here.
Have you had any experiences with lodging your tax return as a Centrelink recipient? What tips can you share to make the process smoother? Share your stories and advice in the comments below!
Services Australia has issued a crucial reminder for millions of Aussies: it's time to get your affairs to avoid potential issues with your Centrelink benefits.
It's important to know that most Centrelink payments, including the age pension, jobseeker payment, and parental leave payment, are considered taxable income.
‘If you get a payment from us, you may need to do things every financial year at tax time,’ Services Australia said.
Centrelink advised millions of Aussies to settle their tax payments for the year. Credit: Shutterstock
However, not all payments from Centrelink are taxed.
Services Australia highlighted that the Family Tax Benefit, Child Care Subsidy, and Additional Child Care Subsidy are among the few that are non-taxable.
This distinction is crucial for accurately reporting your income to the Australian Taxation Office (ATO).
Services Australia emphasised the need for recipients to either lodge a tax return or submit a non-lodgement advice if they don't need to file a return.
Non-lodgement advice informs the ATO that you won't be submitting a tax return for the year. This is necessary to ensure that your records are up-to-date and that you don't receive unnecessary follow-up from the tax office.
To streamline the process, Services Australia advises waiting until your payment summary information is pre-filled in myTax, the ATO's online tax service.
‘If you’re lodging a tax return, you can see your Centrelink payment summary information in the ATO’s myTax now,’ Services Australia said.
‘If you get other income and payments, they should pre-fill from late July.’
‘Using pre-filled information helps you get your tax return right and avoid having to amend and re-submit it again later. If you can, wait to lodge until late July.’
If you're eager to lodge your tax return before the 'Tax Ready' status is indicated, be prepared to manually gather and calculate your financial information.
While this can be done, it's generally recommended to wait until all data is pre-filled to minimise errors.
Recognising that tax time can be overwhelming, the ATO offers a helping hand through its free Tax Help program.
This service is available to individuals earning $60,000 or less annually with simple tax affairs. Accredited volunteers can assist with various tasks, including lodging your tax return online, creating a myGov account, lodging an amendment, claiming a refund of franking credits, or notifying the ATO of non-lodgement.
You can access this support online, by phone, or in person at Tax Help centres nationwide.
You can also check whether your payment is taxable here and check whether you need to lodge a tax return here.
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