Australia is getting ready to file tax returns for the 2024-25 fiscal year, but Centrelink has put out a notification about payment summaries that could impact a lot of recipients. Services Australia has issued a warning that payment summaries may change post July 1 which could create problems for individuals who prefer filing returns early.
Such changes to payment summaries are not the outlandish and can happen for many reasons. Services Australia General Manager Hank Jongen pointed out an example with a student on a Youth Allowance who moved in June but did not change their address until after the financial year reset.
“Of course, there is a need to notify us about their address changes, but with a big move, new arrangements, and part-time work, the new financial year clicking over is the last thing on their mind,” Jongen Reasoned.
Reason Changes Might be Made to Your Payment Information
Shifts in your living situation can have a major impact on the Centrelink benefits you receive, which also affects how the ATO measures your tax situation. Other factors that may change your payment summary include the following:
Change in relationship status, be it breaking up or getting together
Birth of a child
- Change of residence
- Change in employment status, including being employed or unemployed
- Other changes that are not typical
The agency also mentioned that it is important to follow up on these changes. “If you don’t tell us, we may pay you too much. This means you may get a debt and you’ll need to pay us back.”
Recommendation Not to File Your Tax Return Immediately
Centrelink recommends that beneficiaries hold off on filing tax returns immediately after July 1. This also gives time to other systems to adjust any needed changes to all the relevant information. Certain payments need to be updated on an annual basis after the financial year ends, and the processing of these updates can take days or weeks.
Steps To Take If Changes Occur To Your Payments Summary
By default, a notification letter is issued whenever a payment summary changes, detailing the reasons and adjustments made. Your next steps are based on your tax return filed status.
If You Filed Already: A tax return amendment is necessary. Ensure that the ATO has the appropriate information and always confirm whether the new pre-filled information aligns with your Centrelink letter before amending.
If You Did Not List To Filing: Your pre-filled information is supposed to be updated, and during filing, the Centrelink letter should be compared with the pre-filled information. If an inconsistency or mismatch is noticed, the information can either be manually edited or the ATO can be contacted.
Tax Season Scams To Look Out For
Tax season is upon us, and with that Centrelink has issued a notice concerning tax time scams. Fraudsters are taking on the identity of government-affiliated organization, Centrelink and ATO, and are sending out emails and texts that are designed to solicit bank information, and other documents and sensitive information.
f myGov messages are genuine, they will not request to click on links for sign in, and will not solicit for bank details, identity documents or any personal information. In doubt, a good default is to Stop, Check and Protect.
You can access your information safely through the official myGov app or by visiting my.gov.au.
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