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  • Tax-free government pensions and payments

    If you have a disability or you care for someone with a disability, you may be receiving an income tax-exempt pension, allowance or other payment.

    The disability support pension (if you are below age-pension age), the child disability allowance, the carer adjustment payment, Veterans' Affairs disability pensions and allowances and many other payments are tax-exempt income. These are just some of the types of income you don't pay tax on.

    You don't need to include these amounts in your assessable income but you still need to declare them at the correct item on your tax return.

    The payments are taken into account when working out your adjusted taxable income (ATI). Your ATI is an income test we use to work out your eligibility for certain tax offsets and the amount of those offsets.

    See also:

    Last modified: 07 Oct 2016QC 33263