Taxable income
On this pageTaxable income
Taxable income is your assessable income for tax purposes minus all deductions allowed under Division 8 of the Income Tax Assessment Act 1997. These deductions include any loss or outgoing (eg an expense) incurred in gaining or producing assessable income or necessarily incurred in running a business for the purpose of producing your assessable income.
Taxable income is not used to calculate pension and allowance rates, but it is used for Family Tax Benefit and the Commonwealth Seniors Health Card and for assessing Youth Allowance and ABSTUDY entitlements if you are dependent. It also applies to the Assistance for Isolated Children Scheme in assessing entitlement to the Additional Boarding Allowance component. For Family Tax Benefit, Youth Allowance, ABSTUDY and Assistance for Isolated Children, income is made up of taxable income, the value of net rental property losses, certain employer provided fringe benefits, foreign income and tax free pensions and benefits.
The income test for the Commonwealth Seniors Health Card is based on adjusted taxable income. This includes taxable income, foreign income and employer provided fringe benefits. You must include your Tax Notice of Assessment when claiming Commonwealth Seniors Health Card.
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Actual annual family income
Entitlement to Family Tax Benefit is based on your actual annual family income for the current financial year. The taxable income you need to tell the Family Assistance Office about for each financial year for yourself and your partner will include:
- taxable income = gross income less allowable deductions
- employer provided or reportable fringe benefits
- reportable superannuation contributions
- total net losses from net rental property or investment income
- the value of any tax free pensions or benefits
- any foreign income that is not taxable in Australia
- tax exempt foreign income
- less the full amount of any child support your and/or your partner pay.
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More information
For more information on taxable income, contact your nearest Centrelink Customer Service Centre or view the Australian Taxation Office website.
The Income and Assets Tests Table provides information regarding the income or assets tests for the payments provided by Centrelink.
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