Pensioners and senior Australians
Senior Australians, pensioners or mature workers may be eligible for one or more of the following offsets:
Senior Australians and pensioner tax offsets
The senior Australians and pensioner tax offsets can reduce the amount of tax you are liable to pay. To be eligible for either of these tax offsets you have to meet certain conditions relating to your age, income and eligibility for an Australian government pension.
If you have claimed the senior Australians tax offset you cannot also claim the pensioner tax offset.
In some cases you may not have to lodge a tax return any more.
There are different criteria to determine eligibility for the senior Australians tax offset and the pensioner tax offset.
You may meet all the eligibility criteria for the senior Australians tax offset and also receive an eligible Commonwealth pension, allowance or payment such as an age pension. Where you are eligible for both tax offsets, you can only claim the senior Australians tax offset.
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From 1 July 2012, individuals previously eligible for the pensioner tax offset (PTO) will be eligible for the senior Australians tax offset (SATO). To reflect this merger, SATO will be known under the new name of senior and pensioner tax offset (SAPTO).
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Mature age worker tax offset
The mature age worker tax offset aims to encourage and reward mature age workers who stay in the workforce by offering a tax break of up to $500.
To be eligible for the mature age worker tax offset you must:
- be an Australian resident for tax purposes
- be aged 55 years or more at the end of the income year, and
- have received net income from working of less than $63,000 during the income year.
Reportable employer super contributions are included in your net income from working to determine your entitlement.
The mature age worker tax offset can only reduce your tax liability to nil. Any unused portions cannot be refunded or transferred to another taxpayer. This offset should not be confused with the Senior Australians tax offset or the pensioner tax offset. Some people may be eligible for more than one of these.
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For more information on eligibility and how to calculate the offset, refer to Mature age worker tax offset - overview.
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As part of the 2012 Budget, the government announced that from 1 July 2012, eligibility for the mature age worker tax offset will be confined to taxpayers born before 1 July 1957.
This means taxpayers must have turned 55 prior to 1 July 2012 to receive this offset.
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Tax offsets - home
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Last Modified: Friday, 29 June 2012