T1 Seniors and pensioners tax offset 2025

Things you need to know

Seniors and retirees (including self-funded retirees) may be eligible to claim a tax offset if you meet both conditions:

• eligibility for Australian Government pensions and similar payments
• rebate income amounts.

However, you can't claim this tax offset if you're in jail for the whole of 2024–25.

If you have a spouse, you:

• also need to work out whether they are eligible for the tax offset
• may not get the SAPTO even if you meet all the eligibility conditions, as we base the amount of the tax offset on your individual rebate income, not your combined rebate income.

For the definition of:

• spouse, see Tax time definitions.
• rebate income and the worksheet to work it out, see Rebate income 2025.

If you're eligible for this offset, we use the information you provide at this question we will calculate the amount of the offset for you.

Use our beneficiary tax offset and seniors and pensioners tax offset calculator to:

• work out whether you're eligible for this tax offset
• get an estimate of your tax offset.

Beneficiary tax offset and seniors and pensioners tax offset calculator

Eligibility for Australian Government pensions and similar payments

Condition 1: Do any of the conditions in the following table apply to you in 2024–25?

Table: Condition and explanation

Condition	Explanation
A	You show at question 6 in your tax return, either: an Australian Government pension or allowance from Centrelink a pension, allowance or benefit from the Department of Veterans' Affairs (DVA).
B	You met the Centrelink age pension age requirement and are eligible for an Australian Government age pension during 2024–25, but don't receive it because you didn't make a claim, or because of the income test or the assets test, and you satisfy one of the following: you have been an Australian resident for age-pension purposes for 10 years or more, of which 5 years of these years are continuous you have a qualifying residence exemption because you arrived in Australia as a refugee or under a special humanitarian program you receive a partner allowance, a widow allowance, or a widow B pension immediately before turning age pension age you're a woman who was widowed in Australia, and you and your late partner are Australian residents when your late partner died you're currently in Australia, and you have been an Australian resident for at least the last 2 years you're a woman and on 19 March 2020 you're either receiving a wife pension and you weren't receiving a carer allowance a special needs widow B pension you're a woman and on 31 December 2021 you're receiving a widow allowance you would qualify for an age pension under an international social security agreement. To work out whether you're eligible for a social security or Centrelink pension, go to Services Australia websiteExternal Link. For all other enquiries on the seniors and pensioners tax offset, contact us.
C	You met the veteran pension age test and are eligible for a pension, allowance or benefit from Veterans’ Affairs during 2024–25, but don't receive it because you haven't made a claim, or because of the income test or the assets test, and you're either: a veteran with eligible war service a Commonwealth veteran, allied veteran or allied mariner with qualifying service. If you're not sure whether you're eligible for a payment, visit the Department of Veterans' affairs websiteExternal Link.

If your answer to any of the criteria is:

• Yes, you have met condition 1, continue to Condition 2.
• No, you're not eligible for this tax offset, see Where to go next.

Rebate income amounts

Condition 2: Rebate income amounts

You meet this condition if any of the following applies to you in 2024–25:

• You don't have a spouse, and your rebate income was less than $52,759.
• You have a spouse, and the combined rebate income of you and your spouse was less than $87,620.
• At any time in 2024–25 both of the following apply
  • you and your spouse had to live apart due to illness or because one of you was in a nursing home
  • the combined rebate income of you and your spouse was less than $100,104.

Your combined rebate income is the total of:

• your rebate income
• your spouse's rebate income
• the amount on which a trustee of a trust was liable to pay tax in respect of your spouse because your spouse was under a legal disability, such as being an undischarged bankrupt or a person who was declared legally incapable because of a mental condition.

If your answer to any of the criteria is:

• Yes, you meet condition 2, continue to Completing your tax return.
• No, you're not eligible for this tax offset, go to question T2 Australian superannuation income stream 2025.

Completing your tax return

To complete this question, follow the steps.

Step 1

Work out which of the following code letters applies to your circumstances at any time in 2024–25.

Seniors and pensioners tax offset code letters

Code letter	Explanation
A	You're single, separated or widowed.
B	You and your spouse: are both eligible for the seniors and pensioners tax offset had to live apart due to illness or live apart because one of you was in a nursing home.
C	Your spouse wasn't eligible for the seniors and pensioners tax offset, and you and your spouse either: had to live apart due to illness live apart because one of you was in a nursing home.
D	You and your spouse: live together, and are both eligible for the seniors and pensioners tax offset.
E	You and your spouse: live together, and your spouse isn't eligible for the seniors and pensioners tax offset.

 

Step 2

Work out the letter code to use if more than one applies to your circumstances.

Does more than one code letter apply?

• No, print your code letter from Step 1 in the TAX OFFSET CODE box at question T1 – label N. Go to Step 3.
• Yes, use the first code letter that applies to you in the Table: Senior and pensioners tax offset code letters, unless one of the 2 following circumstances applies to you
  • Both A and B apply, and your spouse's taxable income was less than $18,334 – print code B in the TAX OFFSET CODE box at question T1 – label N.
  • Both A and D apply, and your spouse's taxable income was less than $12,494 – print code D in the TAX OFFSET CODE box at question T1 – label N.
    
    Your spouse's taxable income is the amount you show at Spouse details – married or de facto – label O in your tax return.

Step 3

Complete this step if you or your spouse is a veteran, war widow or war widower.

Are you or your spouse a veteran, war widow or war widower?

• No, go to Step 4.
• Yes, select the veteran code letter that applies to you
  • V – you're a veteran, war widow or war widower
  • W – your spouse is a veteran, war widow or war widower
  • X – both V and W apply to you and your spouse.

Print the code letter in the VETERAN CODE box at question T1 – label Y.

Step 4

You must read Income tests 2025 and complete all income tests questions.

Step 5

If you have a spouse during 2024–25, you must complete Spouse details – married or de facto in your tax return.

Any unused portion of tax offset

If both you and your spouse are eligible for the SAPTO and one of you doesn't use it all, the unused portion may be available for transfer to the other person. We will work this out for you automatically when you lodge your tax return and transfer any entitlement.

To work out whether there is any unused spouse’s seniors and pensioners tax offset available to transfer to you, we don't take your spouse’s other credits and tax offsets into account.

The maximum SAPTO amounts for an eligible couple depends on your circumstances. If you:

• live apart due to illness, the maximum tax offset is $2,040 each
• live together, the maximum tax offset is $1,602 each.

Pensioner ages and tests

To be eligible for an Australian Government age pension from Centrelink, on 30 June 2025 a pensioner must be 67 years or olderExternal Link.

To be eligible for a pension, allowance or benefit from Veterans' Affairs, you must meet the veteran pension age test and on 30 June 2025 be 60 years old or older.

You meet the veteran pension age test if one of the following applies to you, and you're eligible for a pension, allowance or benefit under the Veterans' Entitlements Act 1986:

• you have eligible war service, that is, service in World War II or operational service as a member of the Australian Defence Force
• you're a Commonwealth or allied veteran who served in a conflict in which the Australian Defence Force was engaged during a period of hostilities, that is, in World War II, Korea, Malaya, Indonesia or Vietnam
• you're an Australian or allied mariner who served during World War II
• you're the war widow or widower of a former member of the Australian Defence Force.

Pension, allowance or benefit includes:

• disability pension
• service pension
• white or gold Repatriation health cards for treatment entitlements.

If you're not sure if you meet the veteran pension age test, visit the Department of Veterans' affairs websiteExternal Link.

Where to go next

• Go to question T2 Australian superannuation income stream 2025.
• Return to main menu Individual tax return instructions 2025.
• Go back to Taxable income or loss 2025.