Financial year

The financial year is the period from 1 July to 30 June.

Taxable income

Your taxable income is displayed on your tax Notice of Assessment.

Taxable income includes the following:

Reportable fringe benefits

You need to include fringe benefits (or employer provided benefits) you or your partner gets from your employment such as:

You will find this amount recorded on your Payment Summary (formerly called group certificate) at the end of the financial year. You can ask your employer to tell you the expected amount for the relevant financial year. The amount recorded on a Payment Summary for the financial year ending 30 June (of the current financial year) relates to fringe benefits received between 1 April and 31 March (of the current financial year).

Reportable superannuation contributions

Any reportable superannuation contributions are included as income and used to work out your family assistance. Reportable superannuation contributions include:

Reportable superannuation contributions do not include compulsory employer contributions. If you have reportable superannuation contributions, you need to ensure this income is declared to Centrelink as part of your Family Income Estimate.
If you do not know if this applies to you, contact your employer, financial adviser or the Australian Taxation Office.

Total net investment losses

Investments that will be considered for family assistance purposes may include investments in shares, term deposits or managed funds. Consequently, examples of a 'net investment loss' may include the following:

Tax free pensions and benefits

You need to include any income you or your partner get from the following payments from Centrelink or the Department of Veterans' Affairs which are non-taxable:

Centrelink

Department of veterans' affairs:

Do not include the following payments:

Bereavement Payment, Pharmaceutical Allowance, Carer Allowance, Rent Assistance, Remote Area Allowance, Family Tax Benefit Part A, Family Tax Benefit Part B, Child Care Benefit and Maternity Payment.

Foreign income

You need to include income you and your partner earn, derive or receive from a source outside Australia on which you do not pay Australian tax. Where a conversion to Australian dollars is needed, exchange rate as at the relevant financial year needs to be used. For more information on conversion rates contact Centrelink.

Note: Foreign income on which you do pay Australian tax on, must be included as part of your Taxable Income.

Tax exempt foreign income

You need to include any income for qualifying service on a particular approved project (under section 23AF of the Income Tax Assessment Act 1936) and/or foreign service (under section 23AG of the Income Tax Assessment Act 1936) for a continuous period of 91 days or more. If you get this type of income, it will be reported on your payment summary.

Note: Foreign income on which you do pay Australian tax on, must be included as part of your Taxable Income.

Child support paid

You need to advise of any child support you, or your current partner pay to support your natural or adopted children from a previous relationship. Include child support paid through the Child Support Agency, private child support, non-cash child support, or other amounts such as property settlement.

If you pay child support, the full amount (100%) you pay will be deducted from your total income estimate.

You should keep proof of the child support you pay as you may be asked to show evidence of your claim.

Assessed tax payable

Your assessed tax payable is the total amount of income tax you are required to pay, based on your taxable income, for a given financial year.

If your taxable income for a given financial year is below the tax free threshold, your tax payable will be zero.

Tax notice of assessment

The notice of assessment is an itemised account of the amount of tax you owe on your taxable income. It also contains other details that are not part of the assessment, such as the amount of credit for tax you have already paid throughout the income year.

Income limit

You will satisfy the Income requirement if your accepted adjusted taxable income is less than:

Evidence of all taxable and non taxable income

If your and/or your partner's taxable income for the assessment year is above the tax-free threshold you will need to lodge a tax return for that financial year.

If the taxable component of your income is more than the tax-free threshold and you have lodged your tax return, this information will be obtained via a link with the Australian Taxation Office. You will be required to provide us with evidence of your non taxable income.

If your income is less than the tax free threshold and you are not required to lodge a tax return, you will need to provide other forms of evidence of both your taxable and non taxable income. Other forms of evidence can include, but are not limited to, the following:

Dependent children

A dependent child for the Low Income Supplement or Low Income Family Supplement is classified as:

Family Tax Benefit

Family Tax Benefit is an annual tax benefit to help families with the cost of raising children.

You will meet the Family Tax Benefit Requirements if: