Every year at tax time, many Australians turn into the hare, rushing to lodge their tax return as soon as 1 July arrives.
But if you get an income support or family payment, the tortoise has the better approach.
If people expect a tax refund, they often want their Centrelink payment information as soon as possible, so they can lodge their tax return and get their refund quickly.
Waiting a little longer can make the process easier and more accurate. Most of the information you need, including income and Centrelink payment details, is not pre-filled in the ATO’s myTax until late July.
Some taxable Centrelink payments won’t prefill in myTax or show on your Centrelink payment summary. You should check what you got and manually include in your tax return.
Lodging too early can mean relying on incomplete information, which can lead to mistakes, delays and the need to amend your return later.
For the 2023–24 financial year, more than 142,000 people amended their tax return after lodging in the first two weeks of July.
Slow and steady really can win the race. Waiting until your information is pre-filled helps you lodge once and lodge right. At tax time, getting it right matters more than getting it done early.
A common tax time question people contact us about
One of the most common questions we get in the leadup to 30 June is: Is my payment taxable — and does that mean I need to lodge a tax return? Let’s save you the phone call and get straight into it.
You can find a list of what payments are taxable and non-taxable on our website. But just because your payment is taxable, that doesn’t mean you need to lodge a tax return.
The simplest way to find out if you need to lodge is to use the ‘Do I need to lodge?’ tool on the ATO’s website which you can use from 1 July for the 25/26 financial year. It asks you some questions, and it tells you what you need to do.
Bottom line? What you need to do at tax time depends on your situation. Some people need to lodge a tax return. Others just need to advise they are not required to lodge and confirm their income with us.
Wherever you land, the best place to start is my.gov.au/taxtime — it’s packed with tips and info tailored to your circumstances.
Family balancing - the devil is in the details
For families getting Family Tax Benefit or Child Care Subsidy, your income over the financial year affects how much financial support you’re entitled to.
Each year, Services Australia balances these payments by comparing your estimated income with your actual income. It sounds simple, but small differences can have a big impact.
The good news is, most families get a top-up, a supplement payment, or no change when their balancing is done.
Supplement payments for people who get Family Tax Benefit can be hundreds of dollars, but the amount does depend on their circumstances.
What happens next
Once you lodge, the Australian Taxation Office shares your income details with Services Australia, which can take a few weeks.
Balancing begins from early July for Family Tax Benefit and from mid-August for Child Care Subsidy, once data from child care providers is available.
If you’re not required to lodge a tax return, you still need to confirm your income with Services Australia so your payments can be balanced. Not doing this could delay your balancing or you could miss out on top ups or supplements.
You can do this quickly and easily online using ‘Advise non lodgment of tax return’ through myGov or using the Express Plus Centrelink mobile app.
If you pay or get child support and don’t need to lodge a tax return, you need to confirm your income in your Child Support online account through myGov. You need to do this even if you didn’t have any income.
Set yourself up and stay safe
Tax time is not just about the past financial year. It is also your opportunity to avoid problems and unpleasant surprises next time.
Keeping your family income estimate up to date throughout the financial year is one of the most effective ways to reduce the risk of a debt. Even small changes to your circumstances can affect your payments.
Taking five minutes to check your details now could save you thousands.
To help reduce the risk of overpayments for Child Care Subsidy, we withhold 5% of your subsidy each fortnight. This helps in case your income estimate is too low. You can adjust this withholding amount online to better suit your circumstances.
Even with this in place, if you underestimate your income even slightly you could have been paid more than you should have, leaving you with a debt.
A final word of warning, tax time means an increase in scams. Stop. Check. Protect.
Be cautious of messages claiming to be from myGov, Services Australia, or any other government departments, especially if they ask you to click links or share personal information.
If you’ve shared your myGov sign in details or other personal information, contact Services Australia immediately so your account can be secured.
Always access your myGov account directly through my.gov.au or the official app.
Originally published by Yahoo Finance on 20 June 2026.