The new financial year heralds a time when millions of people get to submit their tax returns to the Australian Taxation Office (ATO). However, this is also a time when some Centrelink recipients could see their payments change.

Adjustments to payment summaries after July 1 aren't uncommon and can be due to a range of factors. Services Australia general manager Hank Jongen told Yahoo Finance this happened recently to a student receiving Youth Allowance who moved house in late June.

"Obviously, they needed to tell us about their changed address, but among the big move and new arrangements, and working part-time, the new financial year had clicked over before they notified us of their new circumstances," he said.

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Sadly for this student, they lodged their tax return almost immediately after July 1, which contained the wrong information.

Because their circumstances had changed before the end of the financial year, this needed to be reflected in their tax return for 2024-25.

Changes in living arrangements can affect how much Youth Allowance you receive, which can affect how the ATO assesses your tax.

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Why Centrelink payment summaries may change after July 1

Services Australia said that student is just one example of how your payment summaries could change soon after the start of a new financial year.

The government body stressed this is why you have to make sure you stay up-to-date with any changes in your life.

"If you don’t tell us, we may pay you too much. This means you may get a debt and you’ll need to pay us back," Centrelink said.

These changes include whether you become single, get into a relationship, have a child, change address, get a job, lose a job, or anything else that's unexpected.

There are also certain payments that need to be updated each financial year, and can take a few days or weeks to be changed in the system.

This is why you should wait a few weeks after July 1 to lodge your tax return as the Centrelink system needs time to make sure all your information is correct.

What should I do if my payment summary has changed?

If your payment summary has changed, you'll receive a letter in the mail explaining what has been adjusted.

Centrelink said there are two options at your disposal, but it will depend on whether you have lodged your tax return or not.