INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-15 - NON-ASSESSABLE INCOME  

Division 52 - Certain pensions, benefits and allowances are exempt from income tax  

Subdivision 52-A - Exempt payments under the Social Security Act 1991  

Operative provisions

SECTION 52-10   How much of a social security payment is exempt?  

52-10(1)  


The table in this section tells you about the income tax treatment of social security payments, other than payments of:


(a) pension bonus and pension bonus bereavement payment; or


(aa) child disability assistance; or


(ab) carer supplement; or


(ac) one-off energy assistance payment under the Social Security Act 1991 ; or


(b) (Repealed by No 12 of 2012)


(ba) 2006 one-off payment to older Australians; or


(baa) 2007 one-off payment to older Australians; or


(bab) 2008 one-off payment to older Australians; or


(bb) payments under a scheme referred to in subsection (1CB); or


(c) one-off payment to carers (carer payment related); or


(d) one-off payment to carers (carer allowance related); or


(e) 2005 one-off payment to carers (carer payment related); or


(f) 2005 one-off payment to carers (carer service pension related); or


(g) 2005 one-off payment to carers (carer allowance related); or


(h) 2006 one-off payment to carers (carer payment related); or


(i) 2006 one-off payment to carers (wife pension related); or


(j) 2006 one-off payment to carers (partner service pension related); or


(k) 2006 one-off payment to carers (carer service pension related); or


(l) 2006 one-off payment to carers (carer allowance related); or


(m) 2007 one-off payment to carers (carer payment related); or


(n) 2007 one-off payment to carers (wife pension related); or


(o) 2007 one-off payment to carers (partner service pension related); or


(p) 2007 one-off payment to carers (carer service pension related); or


(q) 2007 one-off payment to carers (carer allowance related); or


(r) 2008 one-off payment to carers (carer payment related); or


(s) 2008 one-off payment to carers (wife pension related); or


(t) 2008 one-off payment to carers (partner service pension related); or


(u) 2008 one-off payment to carers (carer service pension related); or


(v) 2008 one-off payment to carers (carer allowance related); or


(w) payments under a scheme referred to in subsection (1E); or


(wa) payments under the Social Security Act 1991 referred to in subsection (1EA); or


(wb) (Repealed by No 55 of 2016)


(x) economic security strategy payment under the Social Security Act 1991 ; or


(y) training and learning bonus under the Social Security Act 1991 ; or


(z) (Repealed by No 13 of 2014)


(za) education entry payment supplement under the Social Security Act 1991 ; or


(zb) clean energy payments under the Social Security Act 1991 .


(zc) (Repealed by No 96 of 2014)

Note:

Section 52-40 sets out the provisions of the Social Security Act 1991 under which the payments are made.

52-10(1A)  


Payments of pension bonus and pension bonus bereavement payment under Part 2.2A of the Social Security Act 1991 are exempt from income tax.

52-10(1AA)  


Child disability assistance under Part 2.19AA of the Social Security Act 1991 is exempt from income tax.

52-10(1AB)  


Carer supplement under Part 2.19B of the Social Security Act 1991 is exempt from income tax.

52-10(1AC)  


One-off energy assistance payments under Part 2.6 of the Social Security Act 1991 are exempt from income tax.

52-10(1B)  
(Repealed by No 12 of 2012)

52-10(1C)  
(Repealed by No 12 of 2012)

52-10(1CA)  


The following payments under the Social Security Act 1991 are exempt from income tax:


(a) 2006 one-off payment to older Australians (see Division 2 of Part 2.2B of that Act);


(b) 2007 one-off payment to older Australians (see Division 3 of Part 2.2B of that Act);


(c) 2008 one-off payment to older Australians (see Division 4 of Part 2.2B of that Act).

52-10(1CAA)  
(Repealed by No 19 of 2008)

52-10(1CB)  


Payments to older Australians under the following schemes are exempt from income tax:


(a) a scheme determined under item 1 of Schedule 2 to the Social Security and Veterans ' Entitlements Legislation Amendment (One-off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006 ;


(b) a scheme determined under item 1 of Schedule 2 to the Social Security and Veterans ' Affairs Legislation Amendment (One-off Payments and Other 2007 Budget Measures) Act 2007 ;


(c) a scheme determined under item 1 of Schedule 2 to the Social Security and Veterans ' Entitlements Legislation Amendment (One-off Payments and Other Budget Measures) Act 2008 .

52-10(1D)  


The following payments under the Social Security Act 1991 are exempt from income tax:


(a) one-off payment to carers (carer payment related) (see Division 1 of Part 2.5A of that Act);


(b) one-off payment to carers (carer allowance related) (see Division 1 of Part 2.19A of that Act);


(c) 2005 one-off payment to carers (carer payment related) (see Division 2 of Part 2.5A of that Act);


(d) 2005 one-off payment to carers (carer service pension related) (see Division 3 of Part 2.5A of that Act);


(e) 2005 one-off payment to carers (carer allowance related) (see Division 2 of Part 2.19A of that Act);


(f) 2006 one-off payment to carers (carer payment related) (see Division 4 of Part 2.5A of that Act);


(g) 2006 one-off payment to carers (wife pension related) (see Division 5 of Part 2.5A of that Act);


(h) 2006 one-off payment to carers (partner service pension related) (see Division 6 of Part 2.5A of that Act);


(i) 2006 one-off payment to carers (carer service pension related) (see Division 7 of Part 2.5A of that Act); or


(j) 2006 one-off payment to carers (carer allowance related) (see Division 3 of Part 2.19A of that Act);


(k) 2007 one-off payment to carers (carer payment related) (see Division 8 of Part 2.5A of that Act);


(l) 2007 one-off payment to carers (wife pension related) (see Division 9 of Part 2.5A of that Act);


(m) 2007 one-off payment to carers (partner service pension related) (see Division 10 of Part 2.5A of that Act);


(n) 2007 one-off payment to carers (carer service pension related) (see Division 11 of Part 2.5A of that Act);


(o) 2007 one-off payment to carers (carer allowance related) (see Division 4 of Part 2.19A of that Act);


(p) 2008 one-off payment to carers (carer payment related) (see Division 12 of Part 2.5A of that Act);


(q) 2008 one-off payment to carers (wife pension related) (see Division 13 of Part 2.5A of that Act);


(r) 2008 one-off payment to carers (partner service pension related) (see Division 14 of Part 2.5A of that Act);


(s) 2008 one-off payment to carers (carer service pension related) (see Division 15 of Part 2.5A of that Act);


(t) 2008 one-off payment to carers (carer allowance related) (see Division 5 of Part 2.19A of that Act).

52-10(1E)  


Payments to carers under the following schemes are exempt from income tax:


(a) a scheme determined under Schedule 3 to the Family Assistance Legislation Amendment (More Help for Families - One-off Payments) Act 2004;


(b) a scheme determined under Schedule 2 to the Social Security Legislation Amendment (One-off Payments for Carers) Act 2005 ;


(c) a scheme determined under Schedule 4 to the Social Security and Veterans ' Entitlements Legislation Amendment (One-off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006 ;


(d) a scheme determined under Schedule 4 to the Social Security and Veterans ' Affairs Legislation Amendment (One-off Payments and Other 2007 Budget Measures) Act 2007 ;


(e) a scheme determined under Schedule 4 to the Social Security and Veterans ' Entitlements Legislation Amendment (One-off Payments and Other Budget Measures) Act 2008 .

52-10(1EA)  
(Repealed by No 128 of 2015)

52-10(1EB)  
(Repealed by No 55 of 2016)

52-10(1F)  


Economic security strategy payment under the Social Security Act 1991 is exempt from income tax.

52-10(1G)  


Training and learning bonus under the Social Security Act 1991 is exempt from income tax.

52-10(1H)  
(Repealed by No 13 of 2014)

52-10(1J)  


Education entry payment supplement under the Social Security Act 1991 is exempt from income tax.

52-10(1K)  


Australian Victim of Terrorism Overseas Payment under Part 2.24AA the Social Security Act 1991 is exempt from income tax.

52-10(1L)  


Clean energy payments under the Social Security Act 1991 are exempt from income tax.

52-10(1M)  
(Repealed by No 96 of 2014)

52-10(2)  


Expressions used in this Subdivision that are also used in the Social Security Act 1991 have the same meaning as in that Act.

52-10(3)  


Ordinary payment means a payment other than a payment made because of a person ' s death.
52-10 Table_ebook


Income tax treatment of social security payments
Item Payment Case 1 Case 2 Case 3 Case 4
  1.1 Advance pharmaceutical supplement Exempt Exempt Not applicable Not applicable
.
  2.1 Age pension Supplementary amount is exempt (see section 52-15) Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20) Exempt Exempt up to the tax-free amount (see section 52-25)
.
  2AA.1 Australian Government Disaster Recovery Payment Exempt Exempt Not applicable Not applicable
.
  2A.1 Austudy payment Supplementary amount is exempt (see section 52-15) Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20) Exempt Exempt up to the tax-free amount (see section 52-30)
.
  3.1 Bereavement allowance Supplementary amount is exempt (see section 52-15) Supplementary amount is exempt (see section 52-15) Exempt Not applicable
.
3A.1 Carer allowance Exempt Exempt Exempt Exempt
.
  4.1 Carer payment: you are pension age or over Supplementary amount is exempt (see section 52-15) Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20) Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52-35) Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52-25)
.
  4.2 Carer payment: the care receiver or any of the care receivers is pension age or over Supplementary amount is exempt (see section 52-15) Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20) Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52-35) Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52-25)
.
  4.3 Carer payment: both you and the care receiver or all of the care receivers are under pension age Exempt Exempt Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52-35) Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52-25)
.
  4.4 Carer payment: you are under pension age and any of the care receivers has died Exempt Exempt Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax-free amount (see section 52-35) Exempt up to the tax-free amount if it is made under section 239 of the Social Security Act 1991 (see section 52-25)
.
  5.1 Crisis payment Exempt Exempt Not applicable Not applicable
.
  6.1 Disability support pension: you are pension age or over Supplementary amount is exempt (see section 52-15) Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20) Exempt Exempt up to the tax-free amount (see section 52-25)
.
  6.2 Disability support pension: you are under pension age Exempt Exempt Exempt Exempt up to the tax-free amount (see section 52-25)
.
  7.1 (Repealed by No 97 of 2008 )
.
  7.2 (Repealed by No 97 of 2008 )
.
  8.1 (Repealed by No 82 of 2006)
.
  9.1 Double orphan pension Exempt Exempt Exempt Not applicable
.
10.1 (Repealed by No 64 of 2008)
.
11.1 (Omitted by No 83 of 1999)
.
12.1 (Omitted by No 83 of 1999)
.
13.1 (Omitted by No 83 of 1999)
.
13A.1 Fares allowance Exempt Exempt Not applicable Not applicable
14.1 (Omitted by No 83 of 1999)
.
14.2 (Omitted by No 83 of 1999)
.
15.1 Mature age allowance (paid under Part 2.12A) Supplementary amount is exempt (see section 52-15) Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20) Exempt Exempt up to the tax-free amount (see section 52-25)
.
16.1 Mature age allowance (paid under Part 2.12B) Supplementary amount is exempt (see section 52-15) Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20) Exempt Exempt up to the tax-free amount (see section 52-30)
.
17.1 Mature age partner allowance Supplementary amount is exempt (see section 52-15) Supplementary amount is exempt (see section 52-15) Exempt Exempt up to the tax-free amount (see section 52-25)
.
18.1 Mobility allowance Exempt Exempt Not applicable Not applicable
.
19.1 Newstart allowance Supplementary amount is exempt (see section 52-15) Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20) Exempt Exempt up to the tax-free amount (see section 52-30)
.
20.1 (Omitted by No 197 of 1997)
.
21.1 (Omitted by No 197 of 1997)
.
21A.1 Parenting payment (benefit PP (partnered)) Supplementary amount is exempt (see section 52-15) Supplementary amount is exempt (see section 52-15) Exempt Exempt up to the tax-free amount (see section 52-30)
.
21A.2 (Omitted by No 83 of 1999)
.
21A.3 Parenting payment (pension PP (single)) Supplementary amount is exempt (see section 52-15) Supplementary amount is exempt (see section 52-15) Exempt Not applicable
.
22.1 Partner allowance Supplementary amount is exempt (see section 52-15) Supplementary amount is exempt (see section 52-15) Exempt Exempt up to the tax-free amount (see section 52-30)
.
22A.1 Pensioner education supplement Exempt Exempt Not applicable Not applicable
.
22B.1 Energy supplement under Part 2.25B of the Social Security Act 1991 Exempt Exempt Not applicable Not applicable
.
22C.1 Quarterly pension supplement Exempt Exempt Not applicable Not applicable
.
23.1 Sickness allowance Supplementary amount is exempt (see section 52-15) Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20) Exempt Exempt up to the tax-free amount (see section 52-30)
.
24.1 (Omitted by No 197 of 1997)
.
25.1 Special benefit Supplementary amount is exempt (see section 52-15) Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20) Exempt Exempt up to the tax-free amount (see section 52-30)
.
26.1 Special needs age pension Supplementary amount is exempt (see section 52-15) Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20) Exempt Exempt up to the tax-free amount (see section 52-25)
.
27.1 Special needs disability support pension: you are pension age or over Supplementary amount is exempt (see section 52-15) Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20) Exempt Exempt up to the tax-free amount (see section 52-25)
.
27.2 Special needs disability support pension: you are under pension age Exempt Exempt Exempt Exempt up to the tax-free amount (see section 52-25)
.
28.1 (Omitted by No 197 of 1997)
.
29.1 Special needs widow B pension Supplementary amount is exempt (see section 52-15) Supplementary amount is exempt (see section 52-15) Not applicable Not applicable
.
30.1 Special needs wife pension: you are pension age or over Supplementary amount is exempt (see section 52-15) Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20) Exempt Exempt up to the tax-free amount (see section 52-25)
.
30.2 Special needs wife pension: your partner is pension age or over Supplementary amount is exempt (see section 52-15) Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20) Exempt Exempt up to the tax-free amount (see section 52-25)
.
30.3 Special needs wife pension: both you and your partner are under pension age Exempt Exempt Exempt Exempt up to the tax-free amount (see section 52-25)
.
30.4 Special needs wife pension: you are under pension age and your partner has died Exempt Exempt Exempt Exempt up to the tax-free amount (see section 52-25)
.
31.1 Telephone allowance Exempt Exempt Not applicable Not applicable
.
31A.1 Utilities allowance Exempt Exempt Not applicable Not applicable
.
32.1 Widow allowance Supplementary amount is exempt (see section 52-15) Supplementary amount is exempt (see section 52-15) Not applicable Not applicable
.
33.1 Widow B pension Supplementary amount is exempt (see section 52-15) Supplementary amount is exempt (see section 52-15) Exempt Not applicable
.
34.1 Wife pension: you are pension age or over Supplementary amount is exempt (see section 52-15) Supplementary amount is exempt (see section 52-15) Exempt Exempt up to the tax-free amount (see section 52-25)
.
34.2 Wife pension: your partner is pension age or over Supplementary amount is exempt (see section 52-15) Supplementary amount is exempt (see section 52-15) Exempt Exempt up to the tax-free amount (see section 52-25)
.
34.3 Wife pension: both you and your partner are under pension age Exempt Exempt Exempt Exempt up to the tax-free amount (see section 52-25)
.
34.4 Wife pension: you are under pension age and your partner has died Exempt Exempt Exempt Exempt up to the tax-free amount (see section 52-25)
.
35.1 Youth allowance Supplementary amount is exempt (see section 52-15) Supplementary amount, and tax-free amount, are exempt (see sections 52-15 and 52-20) Exempt Exempt up to the tax-free amount (see section 52-30)

Note:

A reference in this table to newstart allowance or youth allowance includes a reference to farm household allowance under the Farm Household Support Act 2014 (see Part 5 of that Act). Other payments referred to in this table (such as advance pharmaceutical supplement) might also be payable to a person who is receiving farm household allowance.


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