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  • Government payments and allowances

    You must declare certain Australian Government payments, pensions and allowances in your tax return. This includes some tax-free payments and allowances.

    Most of these pensions, payments and allowances will pre-fill in your tax return if you lodge online. Always check your pre-fill information against your own records and add any missing information.

    If you received a Government grant or support payment during COVID-19 or disaster assistance payment, check if you need to include the amounts in your tax return.

    On this page:

    Taxable pensions, payments and allowances

    You must include these Australian Government pensions, payments and allowances in your tax return. This is not an exhaustive list. Examples include:

    • the age pension
    • carer payment
    • Austudy payment
    • JobSeeker payment
    • Youth allowance
    • Defence Force income support allowance (DFISA) where the pension, payment or allowance to which it relates is taxable
    • veteran payment
    • invalidity service pension, if you have reached age-pension age
    • disability support pension, if you have reached age-pension age
    • income support supplement
    • sickness allowance
    • parenting payment (partnered)
    • disaster recovery allowance (but not in relation to 201920 bushfires).

    For a full list of Australian Government payments, pensions and allowances that you must declare on your tax return, see:

    Tax-free government pensions or benefits

    Some Australian Government payments are tax-free but you still need to declare them in your tax return. We use this information to work out if you are eligible for any government benefits or concessions and tax offsets.

    Tax-free Australian Government pensions or benefits include:

    • carer payment where either:
      • both the carer and the care receiver are under age-pension age
      • the carer is under age-pension age and any of the care receivers has died.
       
    • disability support pension paid by Centrelink, if you are under age-pension age
    • invalidity service pension, if the veteran is under age-pension age
    • partner service pension where either  
      • the partner and the veteran are under the age-pension age and the veteran is receiving an invalidity service pension
      • the partner is under age-pension age, the veteran has died and was receiving an invalidity service pension at the time of death.
       

    For more information on the exempt payments you need to include in your tax return, see Tax-free government pensions or benefits in Special circumstances and glossary.

    See also:

    Last modified: 01 Jul 2021QC 62675