Navigating the complexities of Centrelink payments can be a daunting task for many Australians, especially for those who rely on these payments to make ends meet.

It's crucial to stay on top of Centrelink to ensure you receive the correct amount you're entitled to.

However, there's a common mistake countless Australians have been making, and it could have significant consequences on their Centrelink payments.

Services Australia Community Information Officer Justin Bott highlighted a widespread misconception that could be costing Aussies.

Many individuals believed that Services Australia could monitor their bank balances and other financial assets in real time.

Centrelink recipients do not report changes to their financial circumstances, which could lead to delayed payments.

Centrelink sends payouts to Australians during certain periods and circumstances. Image Credit: Pro Bono Australia

'We don't have the ability to see these things. It's up to you to let us know about changes that could affect your payment,' Mr Bott shared.

'You need to let us know of changes to your circumstances within 14 days.'

Forgetting to report these changes could lead to consequences.

If uninformed about any changes, Services Australia may overpay you and end up returning any excess funds.

This blunder could lead to unexpected debts and financial stress, which could be challenging for those on a fixed income.

It's essential to understand that if you receive a Centrelink payment, plan to claim a payment or owe money to Services Australia; you must report any changes.

These changes include job changes, a new address, or even banking information.

For those who are working, accurately report your earnings for each entitlement period.

Failing to do so could result in incorrect payment amounts and the aforementioned issues of overpayment.

Moreover, Aussies should also advise Services Australia about changes to their financial assets, such as bank accounts and shares.

While minor fluctuations in bank balances do not need reports, an increase in the balance by more than $2,000 should be reported to the agency.

The same goes when Aussies see an increase in the value of other types of assets by $1,000.

For recipients of part payments, it's essential to report any reductions in asset values.

These changes could increase Centrelink payments.

Interestingly, Aussies don't need to worry about reporting fluctuations in the market value of their shares.

Services Australia automatically updates this information every March and September.

However, Aussies still need to report if they changed the number of shares they own.

Lastly, Bott recommended paying close attention to the letters you receive from Services Australia—both online or in your mailbox.

These communications should inform Aussies about the changes they need to make and help everyone stay compliant with the reporting requirements.

In summary, the key takeaway for all Centrelink recipients is to proactively report any changes to their circumstances within the stipulated period.

By doing so, you can avoid financial stress and receive your payments on time.

Aussies, including seniors, may report changes on their Centrelink accounts by using the myGov app or by calling Centrelink's phone self-service.

Key Takeaways

• Services Australia highlighted a common misunderstanding that the government agency could see individuals' bank balances.
• Centrelink recipients should inform the agency about any changes to their circumstances that could affect their payments.
• Failing to notify Services Australia within 14 days of such changes could lead to overpayments.
• Changes that need to be reported include adjustments to personal circumstances, financial assets, and employment income to ensure proper management of Centrelink benefits.

Have you updated your Centrelink details yet? Share your experiences with Centrelink in the comments section below!

 

[mylittletibbies]

I have always been aware that Centrelink didn't have access to your bank accounts, but it is amazing how many people.brlieve that they do.
However the tax office can access your bank accounts if they think they have need to, so I would imagine Centrelink would as well if they were investugsting you for any reason.

 

[Parrot]

I know the ATO can access one’s Bank account and seeing Centrelink are under the same Umbrella I would not be a bit surprised if they too could get a look in.. ?

 

[novezar]

If we all won powerball or lotto, then we wouldn't have to worry about Centrelink at all.
It's funny with them, that in many cases, the staff think that they know more than you do of your own situation.
Our example was, where the super company we were with, well they advised us,&, which they did, turned our super funds over to another company with heaps of info etc.
When the deal was done & the dust settled, we went to Centrelink with every piece of info., account numbers, balance of units, the portfolios we were invested therein including the roll'd over totals & all of that jazz.
The processor at Centrelink said we didn't have enough info as she knew more than we did. Ha ha ha. She knew "Jack Shit" about ZERO.
3 trips it took us to get the mess sorted. In the end, who was right & who was wrong. Only one guess & it wasn't her.
Of course, no apologies from her at all for all confusion she put us in.
To think, we pay their wages with our tax. Makes one wonder.

 

[Fay1946]

I was told by my accountant to make sure I didn't have over $10,000 in my bank as Centrelink could look at it, keep it under that. Obviously I must have had it wrong.

 

[Isis]

My finance people do that for me. But it is a disgrace that they are dragging their feet and we pay the price.literelly

 

[mylittletibbies]

If we all won powerball or lotto, then we wouldn't have to worry about Centrelink at all.
It's funny with them, that in many cases, the staff think that they know more than you do of your own situation.
Our example was, where the super company we were with, well they advised us,&, which they did, turned our super funds over to another company with heaps of info etc.
When the deal was done & the dust settled, we went to Centrelink with every piece of info., account numbers, balance of units, the portfolios we were invested therein including the roll'd over totals & all of that jazz.
The processor at Centrelink said we didn't have enough info as she knew more than we did. Ha ha ha. She knew "Jack Shit" about ZERO.
3 trips it took us to get the mess sorted. In the end, who was right & who was wrong. Only one guess & it wasn't her.
Of course, no apologies from her at all for all confusion she put us in.
To think, we pay their wages with our tax. Makes one wonder.

Centrelink don't do apologies, don't accept responsibility for their own stuff ups. Somehow it always ends up our fault, even when its not.
All government departments are the same.
Twelve days ago I paid my daughter's carer ($7000) and lodged a claim for reimbursement, I spent over two hours trying to download the attached invoice with no luck. On the Monday morning I spent over an hour on the phone with one of their operators and after all that time we finally got the message that it had gone through.
Thank goodness. success. No, when I checked my account no funds.
Another phone call and told the claim was rejected as they said I didn't attach the invoice. I said their system had said it had. So somebody was going to ring me.
Comes Friday no phone call. I sent an email and attached another copy of the invoice. Finally yesterday I got a reply that it was received last Ftiday, uploaded to my daughters file, and passed onto the appropriate department for payment. Still waiting .
Am also still waiting for reimbursement from.PATS for seven trips to hospital appointments since the beginning of January, almost $700. for my daughter
They're very busy, so they say.
Very frustrating

 

[mylittletibbies]

I was told by my accountant to make sure I didn't have over $10,000 in my bank as Centrelink could look at it, keep it under that. Obviously I must have had it wrong.

Yes he's definitely wrong and he should know better.
You can have up to $314.000 in cash and other assets, such as car, furniture etc before you loose anything off your pension, if you are a home-owner or $566,000 for a.couple. Even more if you aren't a home-owner.
Tine for a new accountant I think.

 

[Towing]

Some companies their share prices change at least once a week. There is probably thousands of companies listed.

 

[freedy50]

That's one think the anti technology people would hate.
A government department keeping a watch on your bank account!! Although a lot of them think it already happens anyway.

 

[Veggiepatch]

Interestingly, Aussies don't need to worry about reporting fluctuations in the market value of their shares.

Nor should they. Playing the share market is a form of gambling and is no different to punting on the horses. There is copious amounts of information for both market players and punters alike. That is not the case with poker machines, lotteries, keno or lotto which are totally random events and never follow a trend. Ever seen form guide on a pokie?

According to Services Australia:-

Lump sums may be exempt from the income test if they meet all of these:

• unlikely to happen again
• hard to predict
• not for a service or work provided.

They include any of these:

• a one off gift, prize, reward, lottery win, or amount of superannuation
• an inheritance
• a payout from a property settlement, or for damages to property or personal effects
• flood, bushfire and drought assistance
• some redress payments, such as for negligence
• compensation from an Australian trust.

However, no specific mention of shares.

 

[Rickcb63]

On a pension your allowed a lot more than $2k balance up, couple combined and homeowners $470k
couple combined non home ownership $722k
single home ownership $314k
single non home ownership $566k
for each $1000 exceeding the limit your pension will decease by $3.00 per fortnight

 

[Rickcb63]

I was told by my accountant to make sure I didn't have over $10,000 in my bank as Centrelink could look at it, keep it under that. Obviously I must have had it wrong.

That’s why you do your own homework !

 

[Scaveola]

So what do you do if the balance of your savings account fluctuates up and down? I manage to save a fair bit of my pension as I don't have many expenses. Are you supposed to inform Centrelink if you save some of your income?

 

[Jest]

pretty simple, stay awake

 

[Robyn M for Mary]

Centrelink is not the only one we need to watch. I received a message from them last Saturday saying my pension was going to be cut basically in half because of a (incorrect) massive increase in my AMP allocated pension. My daughter helped me to work out that there was a mistake to the tune of $200,000 at AMP. Fortunately I was able to contact my financial advisor and he was able to sort it out for me but my next payment is going to short by $150 because the supposed increased money was there for approximately a week.

 

[summadale]

That's one think the anti technology people would hate.
A government department keeping a watch on your bank account!! Although a lot of them think it already happens anyway.

Well back in the ‘90s i Used to show dogs, there was a person who worked for well it was called Dept Social Securities, she called a friend to say, your family maintenance is in your account.

 

[Macarj]

Interestingly, Aussies don't need to worry about reporting fluctuations in the market value of their shares.

Nor should they. Playing the share market is a form of gambling and is no different to punting on the horses. There is copious amounts of information for both market players and punters alike. That is not the case with poker machines, lotteries, keno or lotto which are totally random events and never follow a trend. Ever seen form guide on a pokie?

According to Services Australia:-

Lump sums may be exempt from the income test if they meet all of these:

• unlikely to happen again
• hard to predict
• not for a service or work provided.

They include any of these:

• a one off gift, prize, reward, lottery win, or amount of superannuation
• an inheritance
• a payout from a property settlement, or for damages to property or personal effects
• flood, bushfire and drought assistance
• some redress payments, such as for negligence
• compensation from an Australian trust.

However, no specific mention of shares.

For the pension you do have to tell them the value of your shares when applying for the pension. I was way under

 

[Cheezil]

Centrelink don't do apologies, don't accept responsibility for their own stuff ups. Somehow it always ends up our fault, even when its not.
All government departments are the same.
Twelve days ago I paid my daughter's carer ($7000) and lodged a claim for reimbursement, I spent over two hours trying to download the attached invoice with no luck. On the Monday morning I spent over an hour on the phone with one of their operators and after all that time we finally got the message that it had gone through.
Thank goodness. success. No, when I checked my account no funds.
Another phone call and told the claim was rejected as they said I didn't attach the invoice. I said their system had said it had. So somebody was going to ring me.
Comes Friday no phone call. I sent an email and attached another copy of the invoice. Finally yesterday I got a reply that it was received last Ftiday, uploaded to my daughters file, and passed onto the appropriate department for payment. Still waiting .
Am also still waiting for reimbursement from.PATS for seven trips to hospital appointments since the beginning of January, almost $700. for my daughter
They're very busy, so they say.
Very frustrating

Yes but if you owe them money they probably expect it asap & cut payments off quickly if we told them all the bs excuses they use on us!

 

[Cheezil]

Dreading the time I needto deal with them in just over 3yrs time for a pension as the online process filling forms is a nightmare (did it a couple yrs ago for low income health card) & it wont accept written answers/explanation/question marks if u don't understand - you just can't proceed without going thru all the bs!
Then as so many have said they tell you they haven't received a particular item when in fact they effin' well have been sent it!
They do everything they possibly can to make things near impossible & thus to avoid paying, approving, etc!
So much stress & frustration, I'm sure they want us to die before we get paid at all!