As tax time approaches in Australia, millions of Centrelink recipients are being urged to pay close attention to their Centrelink payment summaries before filing their 2024-25 tax returns. Centrelink has issued an important warning about the timing, accuracy, and availability of payment summaries, aiming to help taxpayers avoid mistakes, delays, and unexpected tax debts.
This detailed guide breaks down what you need to know about Centrelink payment summaries for the 2025 tax season, including how to access them, what to report, and practical advice to confidently and correctly lodge your tax return.
Why Centrelink Payment Summaries Matter for Your Tax Return
Each financial year, Centrelink beneficiaries receive a payment summary showing the taxable and non-taxable payments they received from Centrelink. These summaries provide crucial information for completing your tax return. The Australian Taxation Office (ATO) typically pre-fills this Centrelink income data into your online tax return through myGov by mid to late July.
Centrelink recommends that taxpayers wait until late July before lodging their tax returns. This allows time for all income information, including any late or corrected payment summaries, to be pre-filled. Lodging your tax return too early could lead to mistakes that will require time-consuming amendments.
Centrelink Issues Urgent Warning on Payment Summaries as Millions File Tax Returns in 2025
| Topic | Details |
|---|---|
| When Payment Summaries Are Available | Early July via Centrelink online account or Express Plus app |
| Delay in Payment Summaries | Possible due to system errors; letters sent if affected |
| Payments Pre-filled into Tax Return | Usually mid to late July; manual entry may be required if missing |
| Taxable vs Non-Taxable Payments | JobSeeker, Youth Allowance taxable; Family Tax Benefit non-taxable |
| Medicare Levy Exemption | Medicare Entitlement Statement available from July 1 for exemptions |
| Balancing Payments | Family Tax Benefit and Child Care Subsidy reconciled post-return |
| Advice to Avoid Tax Return Errors | Wait for payment summary and pre-filled income data before lodging |
| Scam Awareness | Beware phishing and fake government contacts during tax season |
Millions of Australians depend on Centrelink payments, and tax time can be stressful. Centrelink’s warnings on payment summary delays and advice to wait for accurate pre-fill data are vital for preventing errors and unexpected debts.
Knowing how to access your payment summary, what payments to report, and when to lodge your return will help you navigate the 2024-25 Australian tax season smoothly and confidently. Careful preparation and patience can make your tax return experience much less stressful.
What Is a Centrelink Payment Summary?
A Centrelink payment summary is a document that details most of the taxable and non-taxable payments you received from Centrelink throughout the financial year. It covers payments such as:
- JobSeeker Payment
- Youth Allowance
- Parenting Payment
- Disability Support Pension (if under Age Pension age)
- Carer Payment
- Special Benefits
- Farm Household Allowance
The summary shows payment amounts and any tax withheld to help the ATO calculate your tax liability accurately. However, some payments won’t appear on the summary and need to be reported manually, such as certain disaster recovery payments.
Importantly, Family Tax Benefit (FTB) payments are non-taxable and do not need to be included in your tax return unless you also received other taxable Centrelink payments.
When and How to Get Your Centrelink Payment Summary
You can access your Centrelink payment summary starting early July through:
- Your Centrelink online account linked to myGov
- The Express Plus Centrelink mobile app
- Some Centrelink service centres (self-service terminals)
- By phone request via Centrelink’s payment line
If you do not see your payment summary by mid-July, it could be delayed due to system processing errors. Centrelink will notify affected individuals by letter, advising not to lodge your tax return until you receive the payment summary to avoid mistakes.
Step-by-Step Guide to Handle Your Centrelink Payment Summary and Tax Return
Step 1: Wait for Your Payment Summary to Be Ready
Access your Centrelink payment summary from early July. If it’s delayed, Centrelink advises waiting until you get the summary before lodging.
Step 2: Confirm Centrelink Income Appears in Your Tax Return
Most Centrelink payments are pre-filled automatically in the ATO myTax platform by mid to late July. Check that your Centrelink income amounts are accurate before lodging.
Step 3: Report Any Payments Not in the Summary
Some payments such as disaster recovery allowances and pandemic leave payments may not be on your summary. You must include these manually on your tax return.
Step 4: Lodge Your Tax Return After All Income Is Complete
Only lodge your tax return once all your income, from Centrelink and other sources, is pre-filled or entered manually. This prevents the need for corrections or amendments.
Step 5: Check Eligibility for Medicare Levy Exemption
If you didn’t have Medicare coverage for part or all of the financial year, request a Medicare Entitlement Statement (MES) from July 1 to claim an exemption on your tax return.
Step 6: Expect Balancing of Estimated Payments
Centrelink balances Family Tax Benefit and Child Care Subsidy payments against your actual income after you lodge your tax return. Any under- or overpayments will be adjusted.
Which Centrelink Payments Are Taxable and Must Be Reported?
You must report the following Centrelink payments as taxable income in your return:
- JobSeeker Payment
- Youth Allowance (if for work or study)
- Parenting Payment
- Disability Support Pension (if under Age Pension age)
- Carer Payment
- Special Benefits and other allowances
Non-taxable payments you do not report include:
- Family Tax Benefit (Part A & B)
- Child Care Subsidy
- Rent Assistance
- Carer Allowance
- Crisis Payment
Accurately distinguishing taxable from non-taxable payments is crucial to avoid processing delays or ATO reviews.
FAQs About Centrelink Issues Urgent Warning on Payment Summaries as Millions File Tax Returns in 2025
Q: What should I do if my payment summary is delayed?
A: Wait for Centrelink to send the summary and do not lodge your tax return until you receive it. Contact Centrelink only if you urgently need the summary.
Q: Are all Centrelink payments taxable?
A: No. Only specific payments like JobSeeker and Youth Allowance are taxable. Family Tax Benefit and some other payments are non-taxable and should not be included in your tax return.
Q: How do I access my Centrelink payment summary?
A: Through your Centrelink online account linked to myGov, the Express Plus app, self-service terminals, or by phone request.
Q: Can Centrelink payments be pre-filled in ATO tax returns?
A: Yes. Most Centrelink payment information is pre-filled automatically by mid to late July. If not, you can manually enter the amounts from your payment summary.
Q: How can I protect myself from scams during tax time?
A: Beware of emails, texts, or calls claiming to be from Centrelink or the ATO asking for personal details. Always use official government websites or apps to access your information.
Practical Tips to Avoid Tax Return Mistakes with Centrelink Payments
- Wait for your payment summary before lodging to avoid amendments.
- Carefully check your payment summary for accuracy and completeness.
- Manually report any taxable payments not listed on the summary.
- Inform Centrelink promptly of any life changes that may affect your payments and tax status.
- Stay vigilant against scams by accessing tax and Centrelink services only through official portals.
- Seek professional advice from registered tax agents for complex situations.
