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• Paying tax on a payment from Centrelink

Paying tax on a payment from Centrelink:

• How much tax do I have to pay on a payment from Centrelink?
• Can I have tax withheld from my payment?
• Do I get a statement of earnings or Payment Summary from Centrelink?
• What payments from Centrelink are taxable?
• How do I find out more?

How much tax do I have to pay on a payment from Centrelink?

If your only income during the financial year is your taxable pension or allowance, there are tax offsets to ensure that you do not have to pay tax.

If you get a pension and you have other income below the income free area, you are also not liable for tax, except in very special circumstances. If you are affected by these circumstances, you will be told when you get Centrelink's PAYG Payment Summary - Individual Non-Business (formerly known as a group certificate).

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Can I have tax withheld from my payment?

Centrelink can arrange for tax to be withheld from your fortnightly payments if you wish. The Australian Taxation Office can tell you how much tax should be withheld.

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Do I get a statement of earnings or Payment Summary from Centrelink?

If you get a taxable payment, Centrelink will send you a Payment Summary at the end of the financial year.

You should allow until the end of the 3rd week of July to get your Payment Summary in the mail before requesting any replacements.

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What payments from Centrelink are taxable?

All pensions, allowances and benefits are taxable except:

• ABSTUDY supplementary benefits
• ABSTUDY (if under 16)
• Assistance for Isolated Children
• Family Tax Benefit Part A and Family Tax Benefit Part B
• Carer Payment (adult) (if the carer is under Age Pension age and the person being cared for receives a non-taxable pension)
• Carer Payment (child) (if the carer is under Age Pension age and the person being cared for receives a non-taxable pension)
• Carer Allowance;
• Crisis Payment
• Disability Support Pension (if under Age Pension age)
• Disability Wage Supplement (if under Age Pension age)
• Double Orphan Pension
• Fares Allowance
• Living Away From Home Allowance
• Baby Bonus
• Maternity Immunisation Allowance
• Mobility Allowance
• Pharmaceutical Allowance
• Pension Bonus Scheme
• Pension Loan Scheme
• Pensioner Education Supplement
• Rehabilitation Allowance
• Remote Area Allowance (offsets Zone Tax Rebate)
• Rent Assistance
• Student Financial Supplement Scheme (no longer available)
• Telephone Allowance
• Wife Pension for DSP wives (if both partners under Age Pension age)
• Youth Allowance (if under 16 and a student)
• Youth Disability Supplement.

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More information

For more information on how tax may affect your payment from Centrelink, contact your nearest Centrelink Customer Service Centre.

For personal taxation advice, contact the Australian Taxation Office.

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