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Preparing for Tax Time: Essential Tips for Centrelink Recipients
As the financial year draws to a close, the time for tax returns approaches once again. Many individuals find themselves unprepared despite making promises to stay organised throughout the year. For those receiving payments from Centrelink, it’s essential to understand the necessary steps to ensure a smooth tax return process.
Key Actions for Centrelink Recipients
1. Understanding Tax Obligations
During the period from July to October, all eligible individuals, including partners, may be required to submit a tax return. To assess your obligation, the Australian Taxation Office (ATO) offers an informative tool on its website that can help clarify whether you need to lodge.
2. Utilising ATO Resources
If you do need to lodge, details related to your income from Services Australia and employment should be available for pre-filling through the ATO’s myTax platform via myGov by late July. It is advisable to wait until then, as this can significantly reduce errors and save time—allowing you to lodge your return with automatically filled details.
3. Accessing Payment Summaries
Centrelink recipients can view their payment summary, which includes information on taxable and non-taxable payments received throughout the financial year. This summary typically becomes accessible from early July either through your myGov account or the Express Plus Centrelink mobile app.
4. Reporting Non-Listed Payments
Not all payments are included in the payment summary; some, such as disaster payments, require manual entry when completing your tax return.
5. Medicare Levy Exemptions
If you are not eligible for Medicare for part or all of the year, you may need to request a Medicare Entitlement Statement (MES) starting July 1. This statement is crucial for claiming a Medicare levy exemption on your tax return, as it enables the ATO to determine your eligibility for the levy.
Balancing Family Tax Benefits
For families receiving Family Tax Benefit (FTB) or Child Care Subsidy (CCS), a comparison of estimated income against actual income will be conducted at the end of the financial year to ensure the correct payment amounts were received. This process begins in July for FTB and mid-August for CCS. Most families will see their payments balanced after filing their tax returns. If you or your partner do not have to lodge a return, you can confirm your income status through your Centrelink online account.
Staying Vigilant Against Scams
As tax time approaches, the risk of scams escalates. It’s essential to remain vigilant against fraudulent emails, phone calls, texts, and social media messages purporting to be from the ATO, myGov, or other government departments. Scammers often create fake websites designed to mimic official platforms to harvest personal information.
To safeguard yourself, remember:
- Never respond to unsolicited messages requesting personal information.
- Do not click links from unknown or unverified sources.
You can securely access your myGov account via the official app or through my.gov.au.
Conclusion
As tax time approaches, Centrelink recipients should take proactive measures to ensure compliance with tax obligations and safeguard against scams. By leveraging ATO resources and understanding the required processes, you can navigate tax season smoothly. Always be cautious of potential scams and protect your personal information. Ensuring that all necessary documentation is prepared ahead of your tax return can save time and lessen the chance of mistakes.
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