More than 400,000 Australian families are at risk of missing out on vital financial support from Centrelink.
Specifically, over 170,000 families receiving the Family Tax Benefit (FTB) and 240,000 families benefiting from the Child Care Subsidy (CCS) have yet to confirm their income for the 2023–24 financial year. The deadline to do so is June 30, 2025.
Consequences of Missing the Deadline
For Family Tax Benefit (FTB) Recipients:
- Repayment Obligations: You may have to repay some or all of the FTB received during 2023–24.
- Loss of Additional Payments: Missing out on any top-up, arrears, or supplement payments.
- Lump Sum Claims: If planning to lodge a lump sum claim, it must be submitted before June 30; otherwise, it will not be accepted.
For Child Care Subsidy (CCS) Recipients:
- Cessation of Payments: CCS payments will stop if income is not confirmed.
- Reduction to 0%: From July 7, 2025, your CCS will reduce to 0%, requiring you to pay full child care fees.
How to Confirm Your Income
To confirm your 2023–24 family income, follow these steps:
- Lodge Your Tax Return: Submit your 2023–24 tax return with the Australian Taxation Office (ATO).
- Advise Non-Lodgement: If you don’t need to lodge a tax return, inform Services Australia by:
- Using your Centrelink online account through myGov.
- Utilizing the Express Plus Centrelink mobile app.
- Selecting ‘Advise tax non-lodgement’ within the app.
Understanding the Balancing Process
Each year, Services Australia compares your estimated income with your actual income, a process known as balancing.
Most families tend to overestimate their income, leading to potential top-up or supplement payments at the end of the financial year. Confirming your income ensures you receive any additional funds you’re entitled to.
Key Financial Details
| Benefit | Details |
|---|---|
| FTB Part A Maximum | $288.82/fortnight (13–15 years); $222.04 (0–12 years) |
| FTB Part B Maximum | $188.86/fortnight (under 5); $131.74 (5–18) |
| Annual Supplements | $916.15 per child (Part A); $448.95 per family (Part B) |
| $1,000 Bonus | One-off April 2025 payment to eligible families |
| 2025 Income Threshold | $65,189/year for full FTB Part A |
| CCS Reduction | Reduces to 0% from July 7, 2025, if income not confirmed |
| Deadline | June 30, 2025, to confirm income and lodge any lump sum claims |
Avoiding Overpayments and Debts
Failure to accurately report income can lead to overpayments, resulting in debts owed to Centrelink.
Many families have faced unexpected bills due to underestimating their income or not understanding the need to declare all income sources. To avoid such situations:
- Regularly Update Income Estimates: Ensure your income estimates are current and accurate.
- Report All Income Sources: Include all forms of income, including government support payments.
- Seek Assistance: If unsure, contact the Services Australia Families line for guidance.
Confirming your income by June 30, 2025, is crucial to secure your Family Tax Benefit and Child Care Subsidy entitlements.
Timely action ensures you receive all eligible payments and avoids potential debts. Don’t miss out—confirm your income today.
FAQs
What happens if I miss the June 30 deadline?
If you don’t confirm your income by June 30, 2025:
- FTB Recipients: May have to repay some or all of the FTB received in 2023–24 and will lose any additional top-up, arrears, or supplement payments.
- CCS Recipients: CCS payments will stop, and from July 7, 2025, your CCS will reduce to 0%, requiring you to pay full child care fees.
How do I know if I need to lodge a tax return?
Use the ‘Do I need to lodge a tax return?’ tool on the ATO website. If you’re still unsure, contact the Services Australia Families line for assistance.
Can I still claim FTB as a lump sum?
Yes, if you didn’t claim FTB during the 2023–24 financial year, you can lodge a lump sum claim. However, it must be submitted before June 30, 2025.