Tax time can feel overwhelming, especially for families managing government benefits and child care subsidies. This guide walks you through everything you need to know to get ready, protect your information, and make the process as smooth as possible.
Understanding What You Need to Do
Before tax season starts, it’s essential to know what steps are required for you and your family.
Check If You Need to Lodge a Tax Return
The first step is to determine whether you need to lodge a tax return. Use the “Do I need to lodge a tax return?” tool on the Australian Taxation Office (ATO) website to find out. Most people who received income, government payments, or had a child support assessment will need to lodge a return.
Gather the Right Information
Collect all relevant documents, including:
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Payment summaries from Centrelink or your employer
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Bank statements
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Receipts for work-related expenses or donations
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Records of any government benefits or subsidies received
Having these documents ready will save you time and reduce stress when it’s time to lodge your return1.
Confirm Your Income for Benefits
If you received Family Tax Benefit (FTB) or Child Care Subsidy (CCS), you must confirm your income so Services Australia can balance your payments. If you had a partner during the financial year, they’ll need to do the same.
How to Lodge Your Tax Return
Once you’ve prepared your documents, it’s time to lodge your tax return.
Lodging Online with myTax
You can lodge your tax return online using myTax through myGov. It’s best to wait until late July, as most of your information (such as payment summaries and employer details) will be pre-filled by then. This reduces the risk of errors and the need to amend your return later.
What If You Don’t Need to Lodge a Return?
If you or your partner don’t need to lodge a tax return, you still need to tell Services Australia your income. You can do this through your Centrelink online account. Select “Advise non-lodgement of tax return” under the Family Assistance menu.
Special Cases: Child Support and Emergency Payments
Most parents with a child support assessment need to lodge a tax return. This ensures child support payments are calculated correctly. If you received emergency payments, make sure to include these amounts in your taxable income, as they may not pre-fill automatically.
Protecting Yourself Online at Tax Time
Tax time is a prime target for scammers. Here’s how to keep your information safe.
Use Secure Accounts
Always use your official myGov and Centrelink accounts to access services. Never share your login details with anyone.
Beware of Scams
Be cautious of emails, calls, or messages claiming to be from the ATO or Centrelink. Official agencies will never ask for your password or bank details via email or text.
Keep Software Updated
Ensure your computer and antivirus software are up to date to protect against malware and phishing attacks.
Balancing Family Tax Benefit and Child Care Subsidy
After the financial year ends, Services Australia balances your payments based on your actual income.
How Balancing Works
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Family Tax Benefit (FTB): Balanced after the final payment for the financial year. The ATO sends your income information, which can take up to 28 days after you receive your notice of assessment.
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Child Care Subsidy (CCS): Balancing starts from mid-August, once your family’s income and child care attendance information are confirmed.
What If You’re Separated?
If you separated from your partner during the year, Services Australia may need your ex-partner’s income details to balance your payments. Make sure to update your details if your circumstances change.
How to Claim Family Tax Benefit as a Lump Sum
If you didn’t receive FTB fortnightly, you can claim it as a lump sum.
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Deadline: You have until 30 June of the following financial year to submit a lump sum claim.
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How to Claim: Use your Centrelink online account through myGov to lodge your claim.
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Confirm Income: You and your partner must confirm your income by lodging a tax return or advising non-lodgement and providing your income details.
FAQs
1. Do I need to lodge a tax return if I only received government benefits?
Most people who received government payments or had a child support assessment need to lodge a tax return. Use the ATO’s “Do I need to lodge a tax return?” tool to check your situation.
2. How do I tell Services Australia if I don’t need to lodge a tax return?
Sign in to your Centrelink online account, select “Advise non-lodgement of tax return,” and provide your income details for the financial year.
3. What happens if I miss the deadline to claim Family Tax Benefit as a lump sum?
If you miss the deadline (30 June of the following financial year), you won’t be able to claim FTB for that year.
Key Tax Time Milestones
| Scheme/Step | When to Act | What to Do |
|---|---|---|
| Lodge Tax Return | 1 July onwards (best in late July) | Lodge online via myTax/myGov |
| Advise Non-Lodgement | 1 July onwards | Use Centrelink online account |
| FTB Balancing | After final FTB payment (July) | Wait for ATO to send income info (up to 28 days) |
| CCS Balancing | From mid-August | Confirm family income and attendance |
| Claim FTB Lump Sum | Up to 30 June next year | Submit claim via Centrelink online account |
Form Data: What You Need to Provide
To complete your tax return or advise non-lodgement, you’ll need:
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Gross income for the financial year
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Payment summaries from Centrelink and employers
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Details of any emergency payments received
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Partner’s income details (if applicable)
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Child care attendance information (for CCS)
Stay Informed and Protected
Tax time doesn’t have to be stressful. By preparing your documents, using secure online services, and staying alert to scams, you can make the process smooth and secure for you and your family.
Also Read:- Next $600 Centrelink Payment Confirmed – Check Eligibility & Payment Dates Now