You might have received amounts that you do not need to include as income on your tax return. We classify them into three different categories:
- exempt income
- non-assessable non-exempt income
- some other amounts that are not taxable and do not affect any calculation on your tax return.
The most common types of exempt and non-assessable non-exempt income are listed below. If you are not sure whether a payment you have received is exempt income, non-assessable non-exempt income or is another type of amount that is not taxable, phone 13 28 61.
Exempt income
Exempt Australian Government pensions, allowances and payments
- Carer adjustment payment (CAP)
- Carer payment where:
- both the carer and the care receivers are under age-pension age, or
- the carer is under age-pension age and any of the care receivers has died
- Defence Force income support allowance (DFISA) 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
- Disability support pension paid by Centrelink to a person who is under age-pension age
- Double orphan pension
- Invalidity service pension where the veteran is under age-pension age
- Partner service pension where either:
- the partner (excluding the non-illness separated spouse of a veteran) and the veteran are under age-pension age and the veteran receives an invalidity service pension, or
- the partner is under age-pension age and the veteran has died and was receiving an invalidity service pension at the time of death
- Veterans' Affairs disability pension and allowances, war widows and war widowers pension
- Wife pension where both the recipient and their partner are under age-pension age, or the recipient is under age-pension age and their partner has died
Lump sum bereavement payments received as part of any of the payments in the previous column are exempt only up to the tax-free amount. Phone 13 28 61 to find out how much of your payment is exempt.
Exempt Australian Government education payments
- Allowances for students under 16 years old, including the Austudy payment and those allowances paid under ABSTUDY, Youth Allowance, the Assistance for Isolated Children Scheme and the Veterans' Children Education Scheme
- Apprenticeship wage top-up
- The first $1,000 of an apprenticeship early completion bonus provided under a specified state or territory scheme for occupations with skill shortages
- Australian-American Educational Foundation grant
- Commonwealth scholarships or bursaries provided to foreign students
- Commonwealth secondary education assistance
- Commonwealth Trade Learning Scholarship
- Language, literacy and numeracy supplement
- Endeavour awards research fellowships or an Endeavour Executive Award
- Payments under the Military Rehabilitation and Compensation Act Education and Training Scheme 2004 for eligible young persons whose eligibility was determined under:
- paragraph 258(1)(a) of the Military Rehabilitation and Compensation Act 2004 and the eligible young person was under 16 years old, or
- paragraph 258(1)(b) of the Military Rehabilitation and Compensation Act 2004
- Pensioner education supplement and fares allowance paid by Centrelink
- Rent assistance paid to Austudy recipients
- Some scholarships and bursaries received by full-time students
- Supplementary allowances for students paid under the Assistance for Isolated Children Scheme
Other exempt Australian Government payments
- Australian Government disaster recovery payments
- Baby bonus paid by Centrelink
- Carer allowance paid under the Social Security Act 1991
- Child care benefit
- Child care rebate
- Child disability assistance under Part 2.19AA of the Social Security Act 1991
- DFISA bonus and DFISA bonus bereavement payment under Part VIIAB of the Veterans' Entitlements Act 1986
- Family tax benefit
- F-111 deseal/reseal ex-gratia lump sum payments
- Household Assistance Package payments which include:
- Clean Energy Advance
- Clean Energy Supplement payments
- Essential Medical Equipment payment
- Low Income Supplement
- Single Income Families Supplement
- Loss of earnings allowance paid under the Veterans' Entitlements Act 1986
- Lump sum pension bonus paid under the Social Security Act 1991 or the Veterans' Entitlements Act 1986
- Lump sum payment made under section 198N of the Veterans' Entitlements Act 1986
- Mobility allowance paid under the Social Security Act 1991
- Economic security strategy payment to families under the A New Tax System (Family Assistance)(Administration) Act 1999 or under the scheme determined under Schedule 4 to the Social Security and Other Legislation Amendment (Economic Security Strategy) Act 2008
- Economic security strategy payment under the Social Security Act 1991 or the Veterans' Entitlements Act 1986 or under the scheme determined under Schedule 4 to the Social Security and Other Legislation Amendment (Economic Security Strategy) Act 2008
- Back to school bonus and single income family bonus paid under the A New Tax System (Family Assistance) (Administration) Act 1999
- Training and learning bonus under the Social Security Act 1991
- Farmers hardship bonus under the Social Security Act 1991
- Education entry payment supplement under the Social Security Act 1991
- Payments under the scheme determined under Schedule 4 to the Household Stimulus Package Act (No 2) 2009
- Income support bonus under the Social Security Act 1991
- Income support bonus under the scheme prepared under Part VII of the Veterans' Entitlements Act 1986
- Income support bonus under the scheme determined under section 258 of the MilitaryRehabilitation and Compensation Act 2004
- The ex-gratia payment from the Australian Government, known as assistance for New Zealand non-protected special category visa holders, for a disaster that occurred in Australia during 2011-12 or 2012-13
- The ex-gratia payment from the Australian Government, known as the Disaster Income Recovery Subsidy, for floods that occurred in Queensland from 21 January 2013
- The ex-gratia thalidomide payment from the Australian Government
- Payment from the Thalidomide Australia Fixed Trust
- Payments from the Australian Government under the incentive payments scheme relating to certain private health insurance policies
- Payments to carers under the scheme determined under Schedule 4 to the Social Security and Veterans' Affairs Legislation Amendment (One-off Payments and Other 2008 Budget Measures) Act 2008
- Pension bonus and pension bonus bereavement payments under Part 2.2A of the Social Security Act 1991 or Part IIIAB of the Veterans' Entitlements Act 1986
- Pharmaceutical allowances paid under the Social Security Act 1991
- Pharmaceutical allowances paid under the Veterans' Entitlements Act 1986 that were paid before 20 September 2009
- Phone allowance paid under the Social Security Act 1991
- Phone allowance paid under the Veterans' Entitlements Act 1986
- Quarterly pension supplement paid under the Social Security Act 1991 or the Veterans' Entitlements Act 1986
- Remote area allowance
- Rent assistance
- Schoolkids Bonus
- Seniors concession allowance paid under the Social Security Act 1991 or the Veterans' Entitlements Act 1986
- Seniors supplement paid under the Social Security Act 1991 or the Veterans' Entitlements Act 1986
- Sugar industry exit grant where you complied with the condition of the grant not to own or operate any agricultural business within five years after receiving the grant
- Tobacco industry exit grant where you complied with the condition of the grant not to own or operate any agricultural business within five years after receiving the grant
- Utilities allowance paid under the Social Security Act 1991
- Utilities allowance paid under the Veterans' Entitlements Act 1986
- Veterans supplement paid under the Veterans' Entitlements Act 1986
- Outer regional and remote (OR&R) payment made under the Helping Children with Autism package
- Outer regional and remote (OR&R) payment made under the Better start for children with disability initiative
- Prisoner of War Recognition Supplement payment under Part VIB of the Veterans' Entitlements Act 1986
Exempt Australian Defence Force and United Nations payments
- Certain pay and allowances for Australian Defence Force personnel (your employer will advise you if an amount is exempt)
- Compensation payments for impairment or incapacity resulting from service with a United Nations armed force
- Compensation payments made under the Military Rehabilitation and Compensation Act 2004, except those that are income-related payments
- Pay and allowances for part-time service in the Australian Naval, Army or Air Force Reserve
- Some allowances paid to Australian Defence Force personnel who served in prescribed overseas areas (your employer will advise you if an allowance is exempt)
- Payments under the Defence Abuse Repatriation Scheme
Other exempt payments
- Certain annuities and lump sums which are paid to an injured person under a structured settlement
- Your share of certain profits or gains arising from disposal of investments by a venture capital limited partnership (VCLP), an early stage venture capital limited partnership (ESVCLP) or an Australian venture capital fund of funds (AFOF)
- Certain distributions from an early stage venture capital limited partnership
- Certain distributions from a pooled development fund
- Certain payments relating to persecution during the Second World War
- Certain profits or gains from disposal of shares in a pooled development fund
- Japanese internment compensation payments made under the Compensation (Japanese Internment) Act 2001 or the Veterans' Entitlements Act 1986
Non-assessable non-exempt income
The most common types of non-assessable non-exempt income are:
- the tax-free component of an employment termination payment (ETP)
- that part of the taxable component of a death benefit ETP paid to a dependant below the 2012-13 cap of $175,000
- the tax-free component of a superannuation benefit
- the taxed element of a superannuation income stream or lump sum received by a person 60 years old or older
- the taxed element of a death benefit superannuation income stream paid to a death benefit dependant where
- the deceased was 60 years old or older at the time of their death, or
- the recipient was 60 years old or older when the benefit was received
- a tax-free superannuation lump sum benefit paid to a person with a terminal medical condition existing at the time when the lump sum was received or within 90 days after its receipt
- National Rental Affordability Scheme payments or non-cash benefits paid (whether directly or indirectly, such as through an NRAS consortium of which you are a member) by a state or territory government or a relevant body established under a state or territory law
- a superannuation lump sum death benefit received by
- a dependant, or
- someone who is not a dependant but received the benefit because of the death of a member of the Australian Defence Force or an Australian police force (including Australian Protective Services) who died in the line of duty
- genuine redundancy payments and early retirement scheme payments shown as 'Lump sum D' amounts on your payment summary
- amounts on which family trust distribution tax has been paid (see question A4 Amount on which family trust distribution tax has been paid)
- interest or other earnings credited to a first home saver account that you hold or a payment to you from such an account
- government contributions paid under the First Home Saver Account Act 2008
- government super contributions
Tax-free income for temporary residents
If you are a temporary resident your foreign income is non-assessable non-exempt income, except income you earn from your employment overseas for short periods while you are a temporary resident.
You are a temporary resident if:
- you hold a temporary visa granted under the Migration Act 1958
- you are not an Australian resident within the meaning of the Social Security Act 1991, and
- your spouse (if you have one) is not an Australian resident within the meaning of the Social Security Act 1991.
If, at any time on or after 6 April 2006, you have been an Australian resident for tax purposes but not a temporary resident, you will not be entitled to the temporary resident exemptions from that time, even if you later held a temporary visa.
For more information, see Foreign income exemption for temporary residents - introduction.
Other amounts that you do not pay tax on
You do not pay tax on most child support and spouse maintenance payments.