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The role of Centrelink

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Centrelink is the government agency that helps to deliver services, support and financial assistance to those in need, for 10 Australian governmental departments under one roof.

It distributes nearly $87 billion in social security payments on behalf of those 10 government departments.  Nearly seven million Australians use Centrelink's services.

Among other services, Centrelink provides financial support through the distribution of allowances, rebates, offsets and even bonuses for Australians – from families, to carers, pensioners and veterans, the unemployed and students.

This system of financial social support is one of the reasons Australians (and some foreigners temporarily in Australia) pay tax. Aside from the funding of public amenities, a proportion of income tax go toward the social services listed below, which you can find out more about by clicking on the links.

Family allowances
Covers family tax benefits A and B, dependant spouse offsets, beneficiary offsets.

Childcare rebates
Covers the baby bonus and childcare benefits.

Health
Medicare, the private healkth insurance rebate and the medical expenses offset

Education offsets
Designed to cover primary and secondary school children

Mature workers allowances
Covers the seniors tax offset and the mature age workers offset.

Pensioners' tax offset
Offsets for pensioners

Low-income earners
Help for Australians with a low income

First home savers
Bank accounts with incentives for first home buyers by way of government contributions and lower taxes.

Defence force rebates
For people serving with the Australian Defence Force or UN

Environmental offsets
Designed to encourage the introduction of green techniques into Australian households

Remote area offsets
Offsets for living in remote parts of Australia

Housekeeper offsets
Offsets for people who employ a housekeeper.

These benefits aren't entirely tax-free handouts, though.  However, if you receive one (or more) of a number of allowances, benefits or social security payments from Centrelink, you can reduce the amount of tax you need to pay through the beneficiary tax offset.

Last reviewed 30/07/2012

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