Paying tax on a payment from Centrelink

• Paying tax on your payment
• Having tax withheld from your payment
• Statement of earnings or Payment Summary from Centrelink
• Payments that are not taxable
• Find out more?

Paying tax on your payment

If your only income during the financial year is your taxable pension or allowance from Centrelink, 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).

Having tax withheld from you 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.

Statement of earnings or Payment Summary

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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Payments that are not 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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Find out more

For more information on how tax may affect your payment from Centrelink, phone us on your usual payment number or visit your nearest Centrelink Customer Service Centre.

For personal taxation advice, contact the Australian Taxation Office.

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