Centrelink online account help - Managing your tax deductions

How to add, update or cancel voluntary tax deductions from your Centrelink payment via your Centrelink online account.

You may have to pay tax if you get or will get any other taxable income in the tax year, such as income from employment. If you think you’ll need to pay tax, the following steps will help you set up a voluntary tax deduction from your Centrelink payment to the Australian Tax Office (ATO).

The ATO will refund any deduction you’ve made that is more than the tax you need to pay. You’ll get this at the end of the tax year.

The screenshots in this guide are from a computer. The page layout will look different if you’re using a mobile device.

Step 1: get started

Sign in to myGov and select Centrelink.

Select MENU from your homepage.

Select Payments and Claims followed by Manage Payments, then Manage Deductions.

Step 2: add a tax deduction

To add a voluntary tax deduction you must both:

  • be in receipt of a taxable payment
  • not have an existing tax deduction arrangement.

You can have other deduction arrangements in place. For example, you can have one or more Centrepay deductions in place but only one tax deduction arrangement.

To add a tax deduction, select Add. If you already have other types of deductions in place, you’ll need to select Add another.

If you have an existing tax deduction, go to:

  • Step 3 to update your tax deduction arrangement
  • Step 4 to cancel your tax deduction arrangement.

Managing tax deductions with your Centrelink online account – online help - Step 2a

The next page will ask you to select what type of deduction you would like to add. Select Tax, then Next to go to the Add Tax Deduction page.

Managing tax deductions with your Centrelink online account – online help - Step 2b

You can choose to have an amount or percentage deducted.

To have an amount deducted, select Have an amount deducted every fortnight. Then tell us both:

  • the dollar amount you want deducted
  • when you want the deduction to start.

Select Next to review and submit your tax deduction arrangement.

Managing tax deductions with your Centrelink online account – online help - Step 2c

To have a percentage deducted, select Have a percentage of my taxable payment deducted. Then tell us both:

  • the percentage you want deducted
  • when you want the deduction to start.

Select Next to review and submit your tax deduction arrangement.

Managing tax deductions with your Centrelink online account – online help - Step 2d

Step 3: update a tax deduction

To update a voluntary tax deduction you must both:

  • be in receipt of a taxable payment
  • have an existing tax deduction arrangement.

The Deductions summary page displays a summary of any current deductions you have in place.

To update your current tax deduction, select the pencil icon in the Action column.

Managing tax deductions with your Centrelink online account – online help - Step 3b

To have an amount deducted, select Have an amount deducted every fortnight. Then enter the dollar amount you want deducted.

We'll display what date the change will take place from.

Select Next to review and submit your tax deduction arrangement.

Managing tax deductions with your Centrelink online account – online help - Step 3b

To have a percentage deducted, select Have a percentage of my taxable payment deducted. Then enter the percentage you want deducted.

We’ll display what date the change will take place from.

Select Next to review and submit your tax deduction arrangement.

Managing tax deductions with your Centrelink online account – online help - Step 3c

Step 4: cancel a tax deduction

To cancel a voluntary tax deduction you must both:

  • be in receipt of a taxable payment
  • have an existing tax deduction arrangement.

The Deductions summary page displays a summary of any current deductions you have in place.

To cancel your current tax deduction, select the bin icon in the Action column.

Managing tax deductions with your Centrelink online account – online help - Step 4a

Select OK to cancel the deduction.

Managing tax deductions with your Centrelink online account – online help - Step 4b

Step 5: review and submit

We’ll give you a summary of the details you’ve provided.

Read the details on the page and make sure they’re correct.

If all the information is correct, read the declaration, then select I accept this declaration and Submit.

Select:

  • Back to update incorrect details
  • Cancel to stop and return to your homepage.

Get your receipt

We’ll give you a receipt ID to let you know your update was successful. Make a note of this number for your records.

Select:

  • the arrow in the Information you have provided row, to view the full details of the tax deduction
  • Return to Summary, to view all of your current deductions.

Managing tax deductions with your Centrelink online account – online help - Step 5b

To display full details of a current deduction, select the magnifying glass icon in the Action column.

Managing tax deductions with your Centrelink online account – online help - Step 5c

Select OK to close the tax deduction details.

Managing tax deductions with your Centrelink online account – online help - Step 5d

Select Back to go back to your homepage, then go to Step 6 to sign out.

Managing tax deductions with your Centrelink online account – online help - Step 5e

Step 6: sign out

From your homepage, you can complete other transactions or select Return to myGov to go back to your myGov account.

For your privacy and security, sign out when you’ve finished using your myGov account.

View other online account and Express Plus mobile app guides and video demonstrations about using your online account.

Page last updated: 4 May 2022