Shannen Findlay

The BIG change coming to Centrelink on July 1

The BIG change coming to Centrelink on July 1


Those receiving Centrelink payments will soon automatically be required to report their employment income – and the government estimates it could save taxpayers up to $2.1 billion dollars.

In this year’s budget speech, the treasurer Josh Frydenberg announced the government expects to bank in the massive savings over five years by “simplifying and automating” the social security reporting system.

From July 1st, welfare recipients who are also employed will automatically input their fortnightly income, rather than calculating and reporting what they earn in order to earn their payments.

The decision to automate Centrelink’s “Single Touch Payroll” system and share income data across a number of departments will help calculate the correct amount of money that is owed to welfare recipients.

This announcement by the treasurer came under the same speech that is the federal budget’s single biggest savings measure in 12 years.

The $2.1 billion savings is expected to “greatly reduce” the likelihood of people receiving Centrelink payments to be overpaid, and in result be chased for the money back, the government said.

Eligibility measure and maximum payment rates will not be impacted.

Older Australians will also be receiving $282 million for 10,000 home care packages to help people remain in their homes. Frydenberg announced that topping up retirement accounts will be made simpler and less complex for seniors.

This policy will aim to help those who are struggling while living independently.

What do you think of the government's decision to automate this payment? Let us know in the comments below.