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  • Amounts not included as income

    You might have received amounts which aren't included as income in your tax return. However, those amounts may be used in other calculations and may need to be included elsewhere in your tax return.

    We classify the amounts you don’t include as income into three different categories:

    Exempt income

    Exempt income is income on which you don't pay tax. However, certain exempt income may be taken into account when calculating the tax losses of earlier income years that you can deduct and the adjusted taxable income of your dependants.

    Exempt income includes:

    • certain Australian Government pensions, including the disability support pension paid by Centrelink to a person who is under age-pension age
    • certain Australian Government allowances and payments, including the carer allowance and the child care subsidy
    • certain overseas pay and allowances for Australian Defence Force and Federal Police personnel
    • Australian Government education payments, such as allowances for students under 16 years old
    • some scholarships, bursaries, grants and awards
    • a lump sum payment you received on surrender of an insurance policy (for mortgage protection, terminal illness or a permanent injury occurring at work) where you are the original beneficial owner of the policy. Typically these payments are not earned, expected, relied upon or occur periodically.

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    Non-assessable, non-exempt income

    Non-assessable, non-exempt income is income on which you don't pay tax. It doesn't affect your tax losses.

    Non-assessable, non-exempt income includes:

    • the tax-free component of an employment termination payment (ETP)
    • genuine redundancy payments and early retirement scheme payments shown as 'Lump sum D' amounts on your income statement.
    • super co-contributions
    • volunteer firefighter government support payments for the 2019–20 bushfires
    • government relief and recovery payments and benefits relating to the 2019–20 bushfires – for example, the Disaster Recovery Allowance.

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    Other amounts that are not taxable

    Generally, you don't have to declare:

    • rewards or gifts received on special occasions, such as cash birthday presents and gifts from relatives given out of love (however, gifts may be taxable if you receive them as part of a business-like activity or in relation to your income-earning activities as an employee or contractor)
    • prizes you won in ordinary lotteries, such as lotto draws and raffles
    • prizes you won in game shows, unless you regularly receive appearance fees or game-show winnings
    • child support and spouse maintenance payments you receive.

    See also:

    Last modified: 14 Feb 2020QC 31936