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  • Government payments and allowances

    There are certain Australian Government payments, pensions and allowances that must be declared on your tax return. These include:

    • the age pension
    • carer payment
    • Austudy
    • Newstart
    • 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
    • disaster recovery allowance.

    In some circumstances the disaster recover allowance is not taxable and is not declared on your tax return.

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

    Tax-free government pensions or benefits

    Some 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 government pensions or benefits include:

    • carer payment under Part 2.5 of the Social Security Act 1991 (this is not the carer allowance under Part 2.19 of the Social Security Act 1991)
    • 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: 15 Jun 2020QC 62675