Millions of Australians Alerted by Centrelink: Check All Details & “Need to do”

Millions of Australians relying on Centrelink benefits have been issued a critical reminder ahead of tax season. This notice, often referred to as the “Need to Do” warning, urges recipients to fulfill their tax-time responsibilities to avoid payment delays, incorrect benefit amounts, or even penalties.

In this comprehensive guide, we’ll break down the latest updates, eligibility requirements, what recipients need to do during tax time, and how to ensure you remain compliant with Centrelink and the Australian Taxation Office (ATO).

Quick Summary: Centrelink Tax-Time Warning 2024

Centrelink Tax-Time Warning: What You Need to Know

Centrelink, through Services Australia, has issued an annual but crucial warning to all welfare recipients during tax season. The reminder, referred to as the “Need to Do” alert, informs recipients of their obligation to either file a tax return or notify the ATO if they are not required to do so.

While it might seem like a routine procedure, missing this step could cause major disruptions in the form of delayed benefits, overpayment recovery, or fines.

Who Needs to Act on the Centrelink Warning?

Most people receiving Centrelink payments will need to engage with the ATO in some way during tax time. There are two main paths:

1. Lodge a Tax Return

2. Submit a Non-Lodgment Advice

Not everyone needs to lodge a return, but failing to take either step can be problematic.

You’ll likely need to lodge a return if:

• You earned income from part-time jobs, investments, or property.

• You want to claim deductions (charity donations, private health rebate, education expenses).

• You received additional support beyond Centrelink payments.

• You had tax withheld from your income during the financial year.

If none of the above applies and your income is below the tax-free threshold (around $18,200), you may be eligible to submit a non-lodgment advice instead.

Why Is This Important for Centrelink Recipients?

Centrelink uses your tax return to cross-check your income. This helps determine whether you’re still eligible for certain payments or if your benefit amount should be adjusted.

For example:

• If your actual income is higher than what you reported to Centrelink, you may need to repay benefits.

• If you underreported income, you could be penalized or see a delay in future payments.

• Failure to lodge a return or non-lodgment notice could result in suspension or reassessment of your payments.

Recent Payment Increases: Additional Reporting Requirements

Coinciding with this warning is the recent increase in Centrelink payments that took effect in early 2024. With many recipients now receiving higher amounts, it’s more important than ever to report changes accurately.

You should update Centrelink if:

• You start a new job or leave a job.

• Your income increases or decreases.

• You move house or have someone move in/out of your household.

• Your family structure changes (e.g., a child moves out or comes under your care).

Consequences of Ignoring the Warning

If you fail to file your return or submit a non-lodgment notice:

• The ATO might contact you requesting overdue information.

• Centrelink may suspend your payments until they confirm your income.

• You could be penalized or fined by the ATO.

• Future eligibility for certain Centrelink programs might be affected.

What Is a Non-Lodgment Advice?

If your only income was from non-taxable Centrelink payments and you had no tax withheld or deductions to claim, you may not need to lodge a return. In such cases, you must inform the ATO by submitting a non-lodgment advice. This tells them you’re not required to lodge and prevents future issues.

You can submit this online via the ATO portal or with the help of a registered tax agent.

How to Lodge a Return or Submit Non-Lodgment Advice

1. Lodging a Tax Return

• Via myGov: Link your ATO account to your myGov profile and lodge online.

• Through a Tax Agent: Accredited agents can assist with accurate filing.

• Tax Help Program: Free service for low-income individuals offered through the ATO.

2. Submitting a Non-Lodgment Advice

• Visit ato.gov.au

• Go to the “Non-Lodgment Advice” section

• Fill in your details and submit electronically

Tax-Time Best Practices for Centrelink Recipients

• Always keep a record of your income and payments throughout the year.

• Report changes to your income or family situation as soon as they occur.

• Link your myGov account to Centrelink and the ATO for easy tracking and updates.

• Seek professional assistance if you’re unsure about lodging.

FAQs: Centrelink Warning 2024

Q1: What happens if I forget to lodge or submit non-lodgment advice?

Your Centrelink payments may be delayed or suspended, and you may receive follow-up action from the ATO.

Q2: Do I need to lodge a return if I only received Centrelink payments?

Not always. If your income is below the threshold and you had no taxable income or deductions, you may only need to submit a non-lodgment advice.

Q3: Can I get help with lodging my tax return?

Yes, the ATO provides a Tax Help program for individuals earning under $60,000 annually. Registered tax agents are also available.

Q4: Where can I submit my non-lodgment advice?

Directly through the ATO website: ato.gov.au

Q5: What is the deadline to lodge my tax return?

Generally, by October 31, 2024 (unless using a tax agent).

Final Thoughts

This year’s Centrelink “Need to Do” warning is more than just a reminder—it’s a critical step in ensuring you continue to receive the correct payments and remain compliant with tax laws. Whether you need to file a tax return or submit a non-lodgment advice, acting now will save you trouble later.

Always keep your income records updated, report changes promptly, and seek assistance if unsure. The collaboration between the ATO and Centrelink ensures that support is targeted to those who need it most, but it also requires recipients to uphold their reporting duties in return.

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