If you receive a Centrelink payment and you or your partner earn money from employment, you must report that income to Centrelink every fortnight. Reporting correctly is the most important thing you can do to avoid overpayments, debts, and fraud penalties.
The Golden Rule: Report What You Were Paid, When You Were Paid
In 2020, Centrelink changed the reporting rules to make them much simpler. You now report the income you actually received during your 14-day Centrelink reporting period, rather than the hours you worked.
If your employer pays you on a Tuesday, and that Tuesday falls inside your Centrelink reporting period, you report that entire payslip. If your payday falls outside the reporting period, you do not report it until the next fortnight.
Gross vs. Net Income: Which Do You Report?
You must always report your Gross Income. Gross income is the total amount of money you earned before tax, Medicare, or other deductions are taken out.
If you report your Net income (the money that actually lands in your bank account), Centrelink will calculate your payment incorrectly, and you will eventually receive a debt notice when they cross-check your data with the ATO.
How to Report
You must report on your specific reporting date. Centrelink will send you a reminder via SMS or the app. You can report using:
- The Express Plus Centrelink mobile app (the easiest method).
- Your Centrelink online account through myGov.
- The Centrelink phone self-service line.
What Happens if You Report Late?
If you forget to report on your scheduled date, Centrelink will pause your payment. Your money will not be processed until you submit your report. Once you report, your payment will usually arrive in your bank account within 1 to 2 business days.
If you repeatedly report late, Centrelink may suspend or cancel your payment entirely, requiring you to submit a new claim.
Reporting Self-Employment and Business Income
If you are a sole trader, freelancer, or run a small business, you do not report your income fortnightly using the standard app feature. Instead, you must provide Centrelink with a Profit and Loss statement (usually every 3 months) or your latest tax return. Centrelink will then average your annual business income and apply a fortnightly amount to your income test.