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  • Tax-free government pensions or benefits that are taken into account in the income tests



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    If you receive any of the government pensions or benefits listed below, then you must include at IT 3 the part of those pensions and benefits that are exempt from tax. In some cases, all of your pension or benefit could be exempt from tax, and in other cases only part of it might be.

    Do not include any part of these pensions and benefits that is a bereavement payment, pharmaceutical allowance, rent assistance or remote area allowance, or language, literacy and numeracy supplement.

    • Disability support pension paid by Centrelink to a person who is under age-pension age
    • Wife pension where both the recipient and their partner are under age-pension age or the recipient is under the age-pension age and their partner has died
    • Carer payment under Part 2.5 of the Social Security Act 1991
    • Pension for defence, peacekeeping or war-caused death or incapacity or any other pension granted under Part II or Part IV of the Veterans' Entitlement Act 1986
    • Invalidity service pension where 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, or
      • the partner is under age-pension age, the veteran has died and was receiving an invalidity service pension at the time of death
    • Income support supplement paid under Part IIIA of the Veterans' Entitlements Act 1986
    • Defence Force income support allowance payable to you on a day when the whole of your social security pension or benefit, which is also payable to you on that day, is exempt from income tax under section 52-10 of the Income Tax Assessment Act 1997
    • A special rate disability pension under Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act 2004
    • A payment of compensation under section 68, 71 or 75 of the Military Rehabilitation and Compensation Act 2004
    • A payment of compensation mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act 2004

    If you are not sure whether a government pension or benefit you have received is a tax-free government pension or benefit for the purpose of this question, see Income tests and how they affect you, or phone 13 28 61.

      Last modified: 29 Jun 2011QC 28061