• Amounts not included as income

    You may have received amounts that aren't subject to tax, so they aren't included as part of your assessable income, but they may be used in other calculations on your tax return.

    The tax treatment of these amounts depends on whether they are classified as:

    Exempt income

    Exempt income is income on which you don't need to pay tax. However, exempt income may be taken into account when calculating the tax losses of earlier income years that you can deduct and the adjustable 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 benefit
    • 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.

    See also:

    Non-assessable, non-exempt income

    Non-assessable, non-exempt income is income you don't need to pay tax on. It doesn't affect your tax losses, but may be taken into account when calculating your liability for the Medicare levy surcharge and the adjustable taxable income of your dependants.

    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 payment summary
    • super co-contributions.

    Other amounts that are not taxable

    Generally, you do not have to declare:

    • rewards or small gifts such as cash birthday presents (however, gifts may be taxable if they are large amounts or 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: 23 May 2016QC 31936