Income tax and Centrelink payments
Centrelink payments such as JobSeeker payment, Age Pension and Austudy form part of the recipient’s taxable income.
However, FTB, Child Care Subsidy and Rent Assistance, as well as some other benefits, are not included in taxable income.
Although some pension payments are included in taxable income, a special income tax offset for beneficiaries ensures that people whose only income comes from certain qualifying social security payments and allowances pay no income tax.
If you receive FTB or the Child Care Subsidy and do not have to lodge a tax return, you must let Centrelink know. A full list of taxable pensions, payments and allowances, and exempt income, is available from the Australian Taxation Office (ATO).
Advice from a lawyer or accountant should be obtained on this complex area if any problems arise.
Income tax and Centrelink payments
Chapter: 5.1: Dealing with social security
Contributors all from Victorian Legal Aid: James Hogan, Deputy Managing Lawyer; Julie Riva, Associate Public Defender (Civil Justice); Kate Brown, Lawyer; Patrick Noyelle, Senior Lawyer; and Tom Durkin, Lawyer
Current as of: 14 October 2024
Law Handbook Page: 293
Next Section: Overpayments
