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  • Government payments and allowances

    Work out which taxable and tax-free government payments, pensions and allowances you need to declare in your tax return.

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    About government payments and allowances

    You must declare certain taxable and tax-free Australian Government payments, pensions and allowances in your tax return. You include some tax-free payments and allowances because we use this information to work out your eligibility for tax offsets and other benefits.

    If you lodge online we pre-fill most of these pensions, payments and allowances in your tax return.

    You will need to check if you need to include in your tax return amounts you receive from:

    Taxable pensions, payments and allowances

    You must include taxable Australian Government pensions, payments and allowances in your tax return. Examples include:

    • 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 are age-pension age or over
    • disability support pension, if you are age-pension age or over
    • income support supplement
    • sickness allowance
    • parenting payment (partnered)
    • disaster recovery allowance (but not in relation to 201920 bushfires).

    This is not an exhaustive list. For a full list of Australian Government payments, pensions and allowances, 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.
       

    This is not an exhaustive list. For a full list of tax-free Australian Government pensions and benefits, see:

    Last modified: 02 Jun 2022QC 62675