Don’t lodge your tax return yet—ATO and Centrelink issue key warning

It’s that time of year again—the end of the financial year, when many Australians find themselves rummaging through drawers for receipts and dusting off the calculator.

For some, it’s also a moment to reflect on where the year’s expenses have gone.

But for others—particularly those receiving government payments—there’s something even more important to consider before clicking ‘lodge’ on their tax return.

Why you shouldn’t rush your tax return

It’s tempting to get your tax return out of the way as soon as the calendar flips to July 1. But here’s the tip: patience pays off.

The Australian Taxation Office (ATO) and Centrelink recommend waiting until late July before lodging your return.

Why? Because by then, most of your income details—including Centrelink payments and employment income—will be automatically pre-filled in your myGov account.

This reduces the risk of errors, saves you time and helps avoid the hassle of chasing missing details.

If you lodge too early, you might miss key information that has yet to be uploaded. That could lead to delays in your refund—or worse, an unexpected bill.

What Centrelink recipients need to know

If you receive Centrelink payments, such as the Family Tax Benefit (FTB) or Child Care Subsidy (CCS), you will need to take a few extra steps at tax time.

Here’s what to remember:

• Check if you need to lodge a tax return: Use the ATO’s online tool to find out. If you or your partner need to lodge, wait for your details to be pre-filled in myGov.
  
• Payment summaries: Most Centrelink payments will be automatically added to your return by mid-July. You can also access your payment summary via your Centrelink online account or the Express Plus Centrelink app. This summary will show taxable and non-taxable payments, and any tax withheld.
  
• Manual entries: Some payments, such as disaster relief assistance, may not be included in your pre-filled data. You’ll need to manually enter these into your tax return.
  
• Medicare levy exemption: If you were not eligible for Medicare for all or part of the year, you can request a Medicare Entitlement Statement (MES) from July 1. This is required to claim the Medicare levy exemption on your return.

Balancing your FTB and CCS

At the end of each financial year, Services Australia compares your estimated income with your actual income to ensure you received the correct amount of benefits. This is known as ‘balancing’.

Balancing begins in July for the FTB and from mid-August for the CCS. If you have a partner, they must also lodge their tax return.

If you or your partner are not required to lodge, you can simply confirm your income online via your Centrelink account or app.

Stay safe: Watch out for scams

Tax time is a favourite season for scammers. Be alert to emails, texts, calls or social media messages pretending to be from the ATO, Centrelink or myGov. Scammers often create convincing fake websites. 

Keep in mind, myGov will never ask you to:

• Click a link to sign in
  
• Enter bank details via email or text
  
• Provide identity documents through a link
  
• Share your personal or sign-in information

When in doubt, don’t respond and never click suspicious links. Always access your account by typing my.gov.au into your browser or using the official app.

What has your experience been at tax time?

Have you made a mistake in the past or found a system that works well? Have you come across any scam messages recently?

Share your tips or experiences in the comments below—your story might help someone else avoid a tax-time misstep. Let’s all stay informed and cautious as we head into the new financial year.

Also read: EOFY rush sparks costly tax mistakes—are you falling for them? ATO warns