Keeping your family income estimate up to date is one of the most important responsibilities for Australians receiving family-related Centrelink payments. Your estimate directly affects how much Family Tax Benefit and Child Care Subsidy you receive during the financial year. If the information is incorrect or outdated, it can lead to underpayments, overpayments, or unexpected debts later.
This detailed guide explains why family income estimates matter, when you should update them, and provides a clear step-by-step walkthrough on how to check, edit, and submit your estimate correctly using your Centrelink online account.
What Is a Family Income Estimate and Why It’s Important
Your family income estimate is your best prediction of your total family income for the entire financial year, including both your income and your partner’s income if you have one. This estimate is used by Services Australia to calculate how much family assistance you’re entitled to receive.
If your estimate is too low and your actual income ends up being higher, you may receive more money than you should during the year and later have to repay the difference. If your estimate is too high, you may receive less support than you’re entitled to. Updating your estimate when circumstances change helps keep payments accurate and avoids financial stress later.
Payments Affected by Your Family Income Estimate
Your estimate is used to work out several key Centrelink payments. These include Family Tax Benefit Part A, Family Tax Benefit Part B, and the Child Care Subsidy. In some cases, it can also affect additional supplements paid at the end of the financial year.
Because these payments are income-tested, even small changes in earnings can affect your fortnightly or monthly payment amounts.
When You Should Update Your Family Income Estimate
You can update your estimate at any time during the financial year, but it’s especially important to do so if your income changes. Common reasons to update include a pay rise, overtime, bonuses, reduced work hours, a new job, stopping work, or changes to your partner’s income.
Between April and June, you can also provide or update your estimate for the next financial year, which helps ensure payments continue smoothly from 1 July.
Step 1: Sign In to Your Centrelink Online Account
To start, sign in to your myGov account and select Centrelink from your linked services. Once inside your Centrelink online account, open the MENU, choose My family, then select Family assistance, followed by Family income estimate.
This section allows you to view your current estimate and make changes if needed. Make sure you’re viewing the correct financial year before proceeding.
Step 2: Review Your Current Income Estimate
On the family income estimate page, you’ll see your current estimated income for the selected financial year. If you have a partner, their income estimate will also be shown. Take a moment to review these figures carefully and compare them with what you realistically expect to earn for the full year.
If the estimate no longer reflects your situation, you should update it as soon as possible.
Step 3: Update Your Income Details
Select Update income estimate to begin editing. You’ll need to enter your best estimate of your total taxable income for the entire financial year. This should include income you’ve already earned and income you expect to earn for the rest of the year.
Income that usually needs to be included covers wages and salaries, self-employment income, business earnings, investment income, and some taxable lump sums. Certain Centrelink payments, such as Family Tax Benefit and Child Care Subsidy themselves, are not included in your estimate.
If you have a partner, you must also update their income details before continuing.
Step 4: Check for Alerts and Confirm Accuracy
After entering your income figures, the system may display alerts if the amounts appear unusual compared to previous years. These alerts are designed to help prevent mistakes. If prompted, review your information and adjust it if necessary.
Once you’re confident the details are accurate, proceed to the next step. Carefully review the summary screen to ensure all information is correct before submitting.
Step 5: Submit Your Updated Estimate
Before final submission, you’ll be asked to read and accept a declaration confirming that the information you’ve provided is correct to the best of your knowledge. After accepting the declaration, submit your update.
You’ll receive a receipt ID confirming that your changes were successfully submitted. It’s recommended you save this receipt ID for your records in case you need to refer back to it later.
Step 6: View Your Family Income History
Your Centrelink account also allows you to review past income estimates. From the family income estimate section, you can choose to view your family income history and select previous financial years. This can help you understand how your estimates compare to your final assessed income after balancing.
Reviewing past records is useful if you’re planning ahead or trying to avoid future overpayments.
Using the Centrelink App to Update Your Estimate
You can also manage your family income estimate using the Express Plus Centrelink mobile app. Once your app is linked to your myGov account, it offers a quick and convenient way to check, update, and submit changes without needing a computer.
The app is especially useful for quick updates when income changes unexpectedly.
Common Mistakes to Avoid
One common mistake is forgetting to update your estimate after a change in income, which can result in debts later. Another is underestimating income by excluding bonuses, overtime, or casual work. Always aim to provide the most realistic estimate possible, even if your income varies.
If you’re unsure what to include, guidance is available through Centrelink support channels.
Conclusion
Updating your family income estimate is a critical step in managing your Centrelink family assistance payments. By regularly checking, editing, and submitting accurate information, you can ensure you receive the correct payment amounts and avoid unexpected debts at the end of the financial year. Staying proactive with updates whenever your income changes helps keep your finances stable and your Centrelink records accurate.
Disclaimer: This article is for general information only. Payment eligibility and income assessment rules may change, and individual circumstances can vary. Always refer to official Services Australia information for the most accurate guidance.