Tax time tips

Between July and October each year, most of us need to take action at tax time. We either need to lodge a tax return or tell the Australian Taxation Office (ATO) if we don’t have to. Services Australia helps millions of Australians who get a Centrelink, Medicare and Child Support payment or service navigate what they need to do at tax time. “The best place to start is go to my.gov.au/taxtime to find tips about how to prepare at tax time based on your circumstances,” Services Australia general manager Hank Jongen said. Do you need to lodge a tax return? Mr Jongen said just because a payment is taxable, doesn’t mean you have to lodge a tax return. “Use the ATO’s ‘Do I need to lodge a tax return?’ tool on their website, ato.gov.au to find out,” he said. If you don’t need to lodge a tax return, you need to tell the ATO and, in some cases, Services Australia too. Wait for the pre-fill “My biggest tip is don’t rush to get your tax done,” Mr Jongen said. When preparing to lodge your tax return, you’ll need to know the details of any taxable and non-taxable payments you got from Services Australia. Most taxable and non-taxable payments will show on your Centrelink payment summary. It also shows any tax that’s been withheld. You can access your Centrelink payment summary from early July in your Centrelink online account through myGov or the Express Plus Centrelink mobile app. But you shouldn’t need your Centrelink payment summary to lodge, as most things should pre-fill for you. "The best time to lodge your tax return is from late July when most of your income information has been pre-filled into your return," Mr Jongen said. “It’s a good idea to double check your pre-filled information is correct and all your income has been included before you lodge.” If you get Family Tax Benefit (FTB) or Child Care Subsidy (CCS) Well over a million families get either Family Tax Benefit (FTB) or Child Care Subsidy (CCS). At the end of each financial year, Services Australia compares the income estimate families provide during the year with their actual income. “This is called balancing and it’s how we check you got paid the right amount during the year,” Mr Jongen explained. “We do this from July for FTB and from mid-August for CCS. “Put simply, most families need to confirm their income before we can balance their payments. “You can do this by lodging your tax return. "If you have a partner, they’ll need to do this as well. "Otherwise you can tell us online if you or your partner don’t need to lodge. “My quick tip is to use our tax time tool to understand what you need to do at tax time. "Check out servicesaustralia.gov.au/familytaxtime to help as every family is different.” What about Medicare and Child Support? If you’re not eligible for Medicare for all or part of the financial year and want to claim the Medicare levy exemption, you can ask us for a Medicare Entitlement Statement (MES). You need a MES to apply for the Medicare levy exemption in your tax return. The ATO will then decide if you need to pay the Medicare levy. Applications opened 1 July and may take up to eight weeks to be processed. People who paid child support will also need the amount they paid in the financial year for their tax return. If your Child Support online account is linked to myGov, you can sign in once your last payment is made for the financial year to find the total amount you paid. Watch out for scams “Scams can be rife around tax time – so be vigilant, be aware and stay safe,” Mr Jongen said. Scammers may tell you to click on a link or ask you to enter your myGov sign in details so they can steal your personal information. “Beware of emails, phone calls, texts and social messages claiming to be from myGov, Services Australia, the ATO or other government departments," he said. "If in doubt, don’t respond and definitely don’t click that link.” To safely access your myGov account and linked services, use the official myGov app or sign in at my.gov.au. Get ahead for next financial year – set up a deduction for tax Another tip is to set up a voluntary deduction for tax from your eligible taxable Centrelink payment to avoid getting an unexpected tax bill. “Not all payments are taxable, and by default, we don’t take tax out of most of our taxable payments, like Youth Allowance, Jobseeker Payment or the Age Pension,” Mr Jongen said. “But you can ask us to. "This can help reduce the amount of tax you may have to pay at tax time. “You can set up a voluntary deduction for tax when you submit a claim, or at any time during the financial year. "You can do this using your Centrelink online account through myGov."

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